IDC: China Government Kickstarts New Chapter for Healthcare Reform; Brings New Emphasis to Informationize the Healthcare Market
18 Dec 2013
IDC predicts that the IT spending of China’s healthcare industry in 2013 will be RMB 20.6 billion, increasing by 20.9% of that in 2012.
The market sizes of the IT spending in the RHIS (Regional Healthcare Information System) and the PHIS (Public Healthcare Information System) in 2013 will be RMB 3.6 billion, increasing by 25.8% of those in 2012.
In the Decision on Major Issues Concerning Comprehensively Deepening Reforms declared in the third Plenary Session of the 18th CPC Central Committee, the Chinese government declared new major initiatives about healthcare reform, including:
• Allowing multi-sited license of a physician
• Allowing social funds to be directly invested in fields lack of resources so as to meet multiple demand services
• Allowing reform and recombination of public hospitals in various manners
IDC believes these key reform initiatives will drive structural changes of healthcare industry; promote development of both privately-operated hospitals and foreign capital hospitals; and lessen the pressure of top large-scale public hospitals.
In the Decision, the initiatives of “fully utilizing the informatization means to promote vertical mobility of high-quality medical resources and strengthening integration of regional public health service resources” will effectively cooperate with the implementation of the multi-sited license so as to ensure medical service quality, improve the medical service level and relieve the social problem of difficulty in receiving the affordable medical treatment.
In the past few decades, multi-sited license of a physician was forbidden according to the government regulations to ensure medical service quality. At present, the medical level of China has made a considerable progress, and the management regulations of the medical industry have been well implemented.
However, the initiative of single-sited license of a physician has brought about some negative effects. Under the scheme, most medical expert resources gather in large-scale 3A hospitals and are not easily accessible by other medical institutions.
With patients gathering in the large-scale 3A hospitals for both serious and minor illnesses, it escalates the difficulty receiving medical treatment and overloading the medical staff.
On the other hand, the medical resources in some medium and small-sized hospitals are not fully utilized and are even wasted due to insufficient patients.
The policy of multi-sited license will allow medical experts to work in multiple medical institutions, so patients can be effectively divided, the resources in medium and small-sized hospitals can be effectively utilized and the income structure of medical staff can be adjusted.
The policy of multi-sited license brings about changes in the medical workflow, as well as challenges and opportunities for medical informatization, and meets the demands of exchanging and sharing medical record information of patients in different medical institutions.
IDC believes the policy will further promote development of the RHIS, development of hospital groups, and development of hospital group informatization.
RHIS will bring about market opportunities such as integration and sharing of a data center, the Internet and electronic medical record, cloud computing, mobile medical treatment and big data.
With the implementation of the policy of multi-sited license of a physician, patients will be divided into medium and small-sized medical institutions or privately- operated hospitals, or may go to different medical institutions at different treatment phases instead of gathering in large-scale 3A hospitals.
The informatization system will allow electronic medical records to be shared with doctors across different medical institutions to facilitate treatment.
The implementation of the policy of multi-sited license will serve to relieve the shortage of professional staff in privately-operated and foreign capital hospitals, promote the development.
The development of privately-operated and foreign capital hospitals can also drive the demand of informatization products from the hospitals, especially the Internet, PC, servers and the medical information system.
In line with the changes, IDC predicts that the RHIS market will further accelerate in the coming years.
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