Part of the incentive here is that the average cost per day in a hospital in Taiwan is $90, compared to $110 in China, so a bit of room for negotiation and pricing strategies. Also what was extremely different here is the fact that the new hospitals are being created by companies known for their manufactured products, consumer electronics and plastics, in other words not long term healthcare companies by comparison. Does this mean that basically anyone could come out of a manufacturing background and create a healthy hospital system, it sounds like there’s some of this going on at present. The physicians from Taiwan too are anxious to work in the new state of the art hospitals too.
The Chinese government sure seems to be open to granting licenses as well as it is pretty well known that the state run hospitals have not been ranked well at all by comparison with other countries, almost near the bottom of the listings. Due to geographic location, Taiwan is able to fly doctors to China if needed. In short, the US is not the only country investing in healthcare in China, but again the most notable fact here is that the companies creating hospitals are not long established healthcare companies but rather manufacturing companies. Is there something they are bringing to the table that has perhaps been missed or overlooked by others? I always say there is something to be learned from everyone out there and this might be a good example here on using some new paradigms rather than the old died in the wool methodologies we have all relied on.
We have some of this going on here in the US, as an example with Sony creating a high definition operating room, but it’s only a portion of the entire solution and not the entire hospital structure. If nothing else it certainly points to the fact that technology is certainly coming out ahead in molding and moving healthcare in a new direction, the technology that we all need and will depend on, no matter where it’s roots are. BD
For years, foreign health-care providers have moved cautiously in China, mainly offering Western-style medicine to expatriates and rich Chinese. But now some Taiwan companies are taking a radically different tack: selling low-cost quality health care to China's masses.
The move is risky. China's health-care market is fragmented and largely insulated from criticism because the state runs most of it. But the companies have an interesting edge: All are Taiwan manufacturing giants that have been running low-cost factories in China for years.
Taiwan Firms Head for China To Make Money on Hospitals - WSJ.com
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