China Preparing for a Digitized Healthcare Landscape, Finds Frost & Sullivan
IT systems are the building blocks of the country's new-age healthcare system
SHANGHAI, Nov. 27, 2014 /PRNewswire/ -- Healthcare in China varies markedly across regions in terms of quality of care, distribution of resources, and depth of insurance coverage. The Chinese government has recognized healthcare as a priority area for reform and hopes to achieve international care standards by 2020. An integral part of the Health China 2020 strategy is the digitization of healthcare delivery, which will leverage sophisticated healthcare information technology (IT) systems.
New analysis from Frost & Sullivan, Analysis of End-User and Regional Perspectives on the China Healthcare IT Market, finds that the market earned revenues of $1.24 billion in 2013 and estimates this to reach $3.97 billion in 2020. The study covers hospital information systems and clinical information systems.
For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/CHN_PR_JZheng_P80A-48_26Nov14.
Large pockets that hold strong potential for healthcare IT remain underpenetrated, especially in Western China. As government efforts expand into this region, first with the adoption of basic hospital information systems and the by clinical applications, exciting new opportunities will emerge for health IT companies.
"The government is doggedly pushing for the use of regional health information networks that will integrate healthcare services and information across hospitals and regions," said Frost & Sullivan Healthcare Industry Manager Natasha Gulati. "A dense regional network will open doors for advanced analytics and population health management solutions, simultaneously creating opportunities for IT integration and security vendors."
However, government initiatives to promote local companies threatens the future of foreign participants.The market is already dominated by local vendors competing on price as well as the ability to customize their solutions in local language and Chinese systems of medicine. Government intervention is sending out the message that doing business in China is expected to become more challenging and less profitable for foreign firms.
Therefore, leading multinationals are establishing strategic relations with large healthcare IT vendors in China, such as Neusoft (http://www.neusoft.com) and Shanghai Kingstar Winning Software (link). Local partnerships will help penetrate the Chinese market better and design a suitable strategy for success.
"IT system vendors are also partnering with hospitals, health administrative agencies, government agencies and residents to provide a full range of customized support including networking, wireless technology, information security, cloud platforms, Big Data, telehealth and telemedicine," noted Gulati. "Strong engagement with local healthcare providers will allow access to local distribution channels, reduce solution adoption risks, lower component incompatibility risks, and help tap unmet local needs in the Chinese healthcare IT domain."
Analysis of End-User and Regional Perspectives on the China Healthcare IT Market is part of the Connected Health (http://www.connectedhealth.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of Healthcare IT Market Across APAC, Analysis of Digital Pathology Market in China, and Malaysia Healthcare Outlook. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of End-User and Regional Perspectives on the China Healthcare IT Market
P80A-48
Contact:
Julie Zheng
Corporate Communication – China
P: +86.21.5407.5780 ext. 8698
E: [email protected]
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SOURCE Frost & Sullivan
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