Australian Business Forum helps Australian SMEs and businesses to understand the Chinese market and refine their China strategy. http://abf.events/ ABOUT THE PRESENTATION BELOW John Knight of The George Institute for Global Health discusses how the China Australia Free Trade Agreement and China's 12th Five Year Plan have created opportunities for Australian healthcare providers in China. The presentation also compares the healthcare systems of the two countries, using data from the University of Sydney and Peking University. Originally presented at Australia-China BusinessWeek 2015 Sydney.

1. THE GEORGE INSTITUTE FOR GLOBAL HEALTH
Health Care in China Today:
Challenges and Opportunities
John Knight
5th August 2015
Sydney

2. The George Institute
Australia’s high impact medical research organisation
SCIMAGO Research Impact Rankings 2011

3. The George Institute for Global Health
Why we are number one
We study human beings - people all round the world,
suffering from the major serious chronic diseases
– Heart disease
– High blood pressure
– Diabetes
– Stroke
– Kidney failure
– Accidents and injuries
– Back pain
– Diseases of poverty and disadvantage
www.georgeinstitute.org

4. The George in China
Office established in 2007
80 staff in Beijing
Research partners across China
Large scale studies of
key health issues
ORBIT 20,000 subjects type II diabetes
SASS 20,000 subjects high salt diet
Large registration and phase IV
trials for top 10 pharma
China Centre for mHealth Innovation
www.georgeinstitute.org.cn
the ORBIT study: 209 hospitals in 10 provinces

5. A visit to the doctor in Australia
Your GP: a 10 yr trained professional
Knows you and your family well
Access to online information.
Often bulk bills to Medicare
Often a one stop shop
- blood tests
- imaging
- physio / nurse
- pharmacy
Referral to specialist/hospital rarely
Medications 100% high quality supply
3.3 doctors per thousand population
one GP for every 900 Australians

6. A visit to the doctor in China
Large queues in outpatients:
a very long wait leads to a
very brief consultation
8yr trained professionals -
hospital based
Connected to the web by
their smart phones
Drug treatment is very often
prescribed – but the quality?
1.8 doctors per 1000 population
one GP for every 17,500 Chinese

7. China’s health care system:
a snapshot
STRENGTHS CHALLENGES
Good numbers of well trained doctors Lack of general practice structure / staff
Poor doctor-patient relationships
Universal health insurance with co-pay
Good access to advanced Western medicine (in
larger cities)
Long delays – loss of productivity, frustration
Service quality reduced in remote areas
(rural health practitioners)
Good HCP & consumer web access to health
information via smartphones
Outdated hospital infrastructure / technology
Significant expenditure
5.4% of GDP* = US$540 billion
Drug dispensing in hospitals – 15% surcharge –
can comprise up to 40% of hospital income.
Increasing number of hospitals
building 20,000 new ones
Lack of private sector facilities / choice
Excellent numbers for clinical trials Slow registration of new drugs by China FDA
*OECD average 9.3%
Australia 9.4%

8. Key planning documents p
1. Five year plans
2. China Australia Free Trade Agreement

9. The 12th 5 year plan 2011-2015
Strengthen public healthcare
infrastructure
Strengthen healthcare service
network
Develop a comprehensive
medical insurance system
Improve drug supply system
Reform the public hospital system
Support the development of
Chinese Medicine

10. The 13th 5 year plan 2016-2020*
1. More general practitioners
2. More hospital beds
3. More private sector services
4. De-link doctor and hospital
incomes from drug
prescriptions
5. Prevention and control of
chronic disease
TARGETS
• Increase basic medical
insurance cover from 320 to
380 RMB per person per year
• Six hospital beds per 1000
people (up from 4.55 in 2013)
• Double the number of primary
care doctors per capita
• Two hospital beds per 1000
provided by the private sector
*not yet finalised

11. The China Australia
Free Trade Agreement (ChAFTA)
Final version signed: text available at
DFAT website and awaiting
endorsement by parliament
Now the subject of a political battle :
there will be two separate
parliamentary enquiries, but China
has said it will not accept any
changes
dfat.gov.au/trade/agreements/chafta

12. ChAFTA on Health Care
Pharmaceuticals, including vitamins and health products:
elimination of tariffs up to 10 per cent, either immediately on
entry into force or within 4 years.
Health and aged care services: China will permit Australian
service suppliers to establish profit-making aged care institutions
throughout China, and wholly Australian-owned hospitals in
certain provinces. This will greatly expand the Australian private
health sector’s offering of medical services through East Asia.
dfat.gov.au/trade/agreements/chafta

13. Opportunities for Australian business
Aged care / private hospitals Ramsay
General practice
training, systems, models
RACGP, HealthScope, medical schools,
corporatised polyclinics
Pharmaceuticals CSL, Aspen
Medical devices ResMed, Cochlear,

14. • George Clinical is a wholly owned commercial subsidiary
of The George Institute
• We do high quality global commercial clinical trials for
big pharma – especially in Asia
• 48 people in Beijing and Shanghai
• We can do your clinical trial, and we can do it in China
• And we can help you get your product registered in China,
– we know the regulatory system and we have the
contacts
www.georgeclinical.com

15. Key points
1. The Chinese health care system is impressive and delivers
good health outcomes for the Chinese people
2. There are still significant challenges in capacity, in health care
delivery and in the business model
3. The 13th 5 year plan for health care (2016-20) will recognise the
challenges and will set out to tackle them
4. The sheer size of the Chinese health marketplace, and the planned
changes, create significant opportunity for Australian health care
businesses
5. With our strong track record of scientific excellence and strong
presence in China, the George Institute and George Clinical are
well placed to help you achieve your business goals in China

16. Affiliated with the University of Sydney
and the Peking University Health Science Centre
THE GEORGE INSTITUTE FOR GLOBAL HEALTH