China’s Healthcare Costs to Rise by 10 Percent a Year: Highlights from Recent Health Economics Forum
At the Health Economics Forum on June 21, 2009, attended by 30 or more specialists representing China’s Ministry of Health, the Center for Disease Control, and the Chinese Medical Association, as well as hospitals and health journalists, the Ministry of Health reported that China’s healthcare expenditures will rise by 10 percent on an annual basis for the next five years.
Cancer, stroke and heart disease are the three major health threats representing a significant economic burden, with 7.2 million people hospitalized for these three diseases in 2003 at an average cost of 5972 RMB per person. To put this into context, urban per capita income in the same year was 8472 RMB, while rural per capita income was 2622 RMB.
Chronic diseases now represent 80 percent of all illnesses and 75 percent of total deaths. By 2010, chronic diseases will account for 85 percent of all deaths. Specialists at the forum cited cervical cancer and hypertension as examples of illnesses for which early detection and intervention can significantly improve outcome.
The forum commented on the cost of diagnostics, citing World Health Organization statistics that diagnostics accounts for only 1 percent of total healthcare expenditures, while two thirds of healthcare decisions are based on diagnostic results. The forum concluded that a broad use of diagnostics is an appropriate measure for healthcare cost containment.