Plans to privatize the Chinese healthcare system -- considered a potential blockbuster market by many observers -- appeared to hit a snag this week with the release of a report critical of the country's move toward a free market for healthcare services. Following the release of a critical World Bank Report earlier this week, China's Health Minister admits recent changes to the system have led to unexpected problems. Minister Gao Qiang says private hospitals are charging patients exorbitant rates and prescribing unnecessary prescription drugs to generate a profit.
The government's decision to more closely regulate the healthcare industry follows a similar move to more closely track drug industry advertising, which has exploded in recent years. The criticism comes as China's hospitals are doing increasingly well, with profits up 70 percent over the last three years. According to some estimates, only 7 percent of China's population of 1.3 billion has adequate access to healthcare, making the market perennially attractive for foreign investors.
- see this story from Xinhua News Service