Growth projected for Chinese health industry

Analysts predict that the health industry in China will experience substantial growth in the coming decade.

In its 2015 Health Care Outlook, Deloitte predicted health care expenditure to grow to $892 billion by 2018, projecting an 11.8 percent increase in total annual spending per year between 2014 and 2018. The firm anticipates that the primary drivers for the spending spike will be government health care reforms, rising incomes and a growing aging population.

While total revenue for the health care industry in China has grown every year since 2009, the actual growth rate increased only twice, in 2009 and 2012, according to the South China Morning Post.

Government-sponsored medical cost reimbursement schemes have typically helped drive up patient numbers since they were rolled out in 2007. Since then, they have approached complete coverage, however, a new disease insurance scheme announced in August will offer additional reimbursement that will further drive growth, the Post reported.

The current aged growth rate in China is at a five-year high and is expected to reach a ten-year high by 2020, which will also drive patient growth, the source reported.

Medical device companies and hospital services firms are some of the sub-sectors expected to receive the greatest boost from health industry growth.