Effects of medical reform on the medical device industryIn order to solve many problems of the health care system in China, the government is implementing a large-scale reform of medical system. In 2009 April, the State Council promulgated the new medical reform program, and promised, will invest an additional 850000000000 yuan in the three years from 2009 to 2011 ($123000000000) to push forward the reform of. The scheme aims to set up a national medical care insurance system, to 2010 will cover 90% of the Chinese population, construction and focus on improving rural and community health service center.The government will be building new, transform the 3700 city community health service center in three years and 11000 community health service stations; 2400 new city community health service center in difficult areas. The goal of these initiatives is the city hospital patients from large to small clinics more convenient shunt, alleviate overcrowding and hospital beds shortage problem, at the same time the development of medical infrastructure to meet the needs of population aging in china.The central government will focus on the improvement of poverty in China's eight hundred million rural medical service, these rural residents difficult or impossible to obtain a lot of basic medical service and medical insurance. The new "rural cooperative medical compensation plan" requirement, by 2011, the town home must establish clinic, each county must establish hospital. If the program objectives are achieved, rural areas of the country in three years will at least set up 2000 new hospitals and 29000 village clinics.One of these reform measures potential beneficiaries of China's medical device industry. Analysis report of medical equipment research firm Episcom pointed out, by 2014, gross of Chinese medical equipment market is expected to reach $28000000000, two times more than in 2006. According to the insiders, the reason mainly lies in the continued growth, rising, high-end medical equipment or home medical equipment purchasing and paying much attention to the government for the development of medical facilities in rural areas.Impact of the new regulationsIn this reform, the central government stressed, increase in small clinics and one or two hospitals (less than 500 bed hospital) health care level at the same time, also reducing the cost.The Ministry of health to strengthen the control of the purchase price "class a" medical device, this kind of medical instruments cost more than 5000000 yuan (about $710000). The Ministry of Health pointed out, this kind of equipment that may increase medical expenses. However, the government still encourage medical costs, and in 2008 to 2010 allocated 8300000000 yuan ($1200000000) for the purchase of X machine, patient monitoring equipment and ultrasonic testing equipment for rural areas. The government will also provide medical equipment subsidies, and the provisions of the medical institutions where the use of fiscal funds to purchase equipment, must give priority to buy domestic products.In addition to the provision of related with the purchase of medical equipment, the central government was developing an injection of funds. The stimulus package recently, the central government plans to invest 62800000000 yuan in technology research and development aspects of medical industry ($9200000000). For a long time, Chinese enterprises in the low-end market, foreign enterprises occupy the high-end market, but government support of R & D, and many Chinese enterprises are trying to become a global manufacturer of ambition, is changing the industry trend.The new medical facilities need to be equipped with the devices, the need to update the existing hospital medical equipment, because the current 60-70% hardware devices is the legacy of the twentieth Century 70, 80 time.Domestic enterprises are investingThe domestic medical equipment market is still a highly fragmented market. At present, China's medical equipment manufacturing enterprises are about 3000 or so, but most of them are small scale, market power is limited, and only a small part of products. Chinese medicine industry, a total of 62 companies listed overseas, of which only four are: medical equipment enterprises listed in Hongkong Jinwei Medical Technology Co., Ltd. and Shandong Weigao group medical polymer Limited by Share Ltd, as well as in the NASDAQ - listed MINDRAY Medical International Limited and China Medical Technology company.However, the domestic manufacturing enterprises are investing heavily in order to gain market share. Beijing Wandong Medical equipment Limited by Share Ltd is one of the largest medical equipment production enterprise, specializing in the production of imaging equipments and dental equipment diagnosis, the company's marketing manager said, "the market still has very large development space, despite the financial crisis, but we are still very optimistic about market prospects."At the same time, they are committed to the development of high-quality equipment, its cost than foreign competitors low 30%. MINDRAY Medical International Limited is China's largest medical equipment production enterprise, the company in 2008 the income of nearly $550000000, than going up year of growth 36%. MINDRAY marketing manager Mr. Xu believed that still has a lot of development opportunities: "the our corporation has set up a solid foundation in the domestic market, is currently focused on the international market. Recently, we have made a large number of investment in research and development and sales, in order to be able to grasp the opportunities in the future."The steps taken by the government and the rise of domestic enterprises such as MINDRAY, no formation pressure closed to foreign enterprises, encourage them to make a quick response, to consolidate its position in the China market, but multinational medical equipment manufacturing enterprises in China still has great development opportunities, because they have advantage in technology, at the same time, hospital and consumption

Date:2013/5/23 13:38:35

Effects of medical reform on the medical device industry

In order to solve many problems of the health care system in China, the government is implementing a large-scale reform of medical system. In 2009 April, the State Council promulgated the new medical reform program, and promised, will invest an additional 850000000000 yuan in the three years from 2009 to 2011 ($123000000000) to push forward the reform of. The scheme aims to set up a national medical care insurance system, to 2010 will cover 90% of the Chinese population, construction and focus on improving rural and community health service center.

The government will be building new, transform the 3700 city community health service center in three years and 11000 community health service stations; 2400 new city community health service center in difficult areas. The goal of these initiatives is the city hospital patients from large to small clinics more convenient shunt, alleviate overcrowding and hospital beds shortage problem, at the same time the development of medical infrastructure to meet the needs of population aging in china.

The central government will focus on the improvement of poverty in China's eight hundred million rural medical service, these rural residents difficult or impossible to obtain a lot of basic medical service and medical insurance. The new "rural cooperative medical compensation plan" requirement, by 2011, the town home must establish clinic, each county must establish hospital. If the program objectives are achieved, rural areas of the country in three years will at least set up 2000 new hospitals and 29000 village clinics.

One of these reform measures potential beneficiaries of China's medical device industry. Analysis report of medical equipment research firm Episcom pointed out, by 2014, gross of Chinese medical equipment market is expected to reach $28000000000, two times more than in 2006. According to the insiders, the reason mainly lies in the continued growth, rising, high-end medical equipment or home medical equipment purchasing and paying much attention to the government for the development of medical facilities in rural areas.

Impact of the new regulations

In this reform, the central government stressed, increase in small clinics and one or two hospitals (less than 500 bed hospital) health care level at the same time, also reducing the cost.

The Ministry of health to strengthen the control of the purchase price "class a" medical device, this kind of medical instruments cost more than 5000000 yuan (about $710000). The Ministry of Health pointed out, this kind of equipment that may increase medical expenses. However, the government still encourage medical costs, and in 2008 to 2010 allocated 8300000000 yuan ($1200000000) for the purchase of X machine, patient monitoring equipment and ultrasonic testing equipment for rural areas. The government will also provide medical equipment subsidies, and the provisions of the medical institutions where the use of fiscal funds to purchase equipment, must give priority to buy domestic products.

In addition to the provision of related with the purchase of medical equipment, the central government was developing an injection of funds. The stimulus package recently, the central government plans to invest 62800000000 yuan in technology research and development aspects of medical industry ($9200000000). For a long time, Chinese enterprises in the low-end market, foreign enterprises occupy the high-end market, but government support of R & D, and many Chinese enterprises are trying to become a global manufacturer of ambition, is changing the industry trend.

The new medical facilities need to be equipped with the devices, the need to update the existing hospital medical equipment, because the current 60-70% hardware devices is the legacy of the twentieth Century 70, 80 time.

Domestic enterprises are investing

The domestic medical equipment market is still a highly fragmented market. At present, China's medical equipment manufacturing enterprises are about 3000 or so, but most of them are small scale, market power is limited, and only a small part of products. Chinese medicine industry, a total of 62 companies listed overseas, of which only four are: medical equipment enterprises listed in Hongkong Jinwei Medical Technology Co., Ltd. and Shandong Weigao group medical polymer Limited by Share Ltd, as well as in the NASDAQ - listed MINDRAY Medical International Limited and China Medical Technology company.

However, the domestic manufacturing enterprises are investing heavily in order to gain market share. Beijing Wandong Medical equipment Limited by Share Ltd is one of the largest medical equipment production enterprise, specializing in the production of imaging equipments and dental equipment diagnosis, the company's marketing manager said, "the market still has very large development space, despite the financial crisis, but we are still very optimistic about market prospects."

At the same time, they are committed to the development of high-quality equipment, its cost than foreign competitors low 30%. MINDRAY Medical International Limited is China's largest medical equipment production enterprise, the company in 2008 the income of nearly $550000000, than going up year of growth 36%. MINDRAY marketing manager Mr. Xu believed that still has a lot of development opportunities: "the our corporation has set up a solid foundation in the domestic market, is currently focused on the international market. Recently, we have made a large number of investment in research and development and sales, in order to be able to grasp the opportunities in the future."

The steps taken by the government and the rise of domestic enterprises such as MINDRAY, no formation pressure closed to foreign enterprises, encourage them to make a quick response, to consolidate its position in the China market, but multinational medical equipment manufacturing enterprises in China still has great development opportunities, because they have advantage in technology, at the same time, hospital and consumption