Rising Cost of Healthcare in China
Foreign nationals in China are experiencing the global phenomenon of medical inflation first hand. In a healthcare system not traditionally viewed as expensive, China now has some of the highest costs for expatriate treatments in the world.
The primary reason for this trend is the increasing number of foreign nationals seeking treatment with English speaking or expatriate doctors. Problems rise however, from the limited numbers of physicians conversant in European languages and familiar with traditional western medical practices. When combined with rising numbers of foreign nationals in China drawn to an ever expanding economy, increased demand has now ensured extremely high treatment costs for expatriates in China.
China is increasingly seen as the next big healthcare market after the United States of America. International corporations and investors are moving quickly to reap the rewards of this fledgling industry. Chinese medical inflation, particularly for expatriate treatments and care, is rising so fast that many costs are now comparable to those in the country with the highest medical costs in the world, the United States of America. For an expatriate in China, simply visiting a doctor for western style treatment and consultation in English can cost between US$65 - US$200. The average cost of such treatment in the leading Chinese hospitals is now US$93. The federal average for the same consultation in the USA is approximately US$100. With this rapid rise in healthcare costs in China, some healthcare is now becoming a headline issue for foreign nationals in China.
One treatment area where cost increases have been most evident is maternity and pregnancy care. In 2005 there were virtually no maternity options for expatriates in China, with foreign nationals forced to travel overseas for maternity care. Low demand for this type of care kept costs down in the limited number of hospitals that initially offered expatriate maternity services. However, better hospital marketing and perceptions of international medical care have changed. The number of hospitals offering international-standard maternity care has risen, but new demand now far outstrips this growth. More and more expatriates are choosing to have their children on the mainland rather than taking unnecessary risks associated with traveling overseas for delivery. This sudden rise in demand has been a leading factor in the exponential rise in prices of quality maternity care in China.
The major Chinese hospitals do possess enough facilities for quality maternity care, however core problems stem from a very low supply of doctors with the additional skills of western maternity training and English proficiency. English literacy is a key demand, as new expatriate mothers seek to feel at ease and converse in their own language. In the drive for English-literate doctors, most Chinese medical facilities are importing top quality obstetricians and gynecologists from other Asian countries (notably Hong Kong and Singapore) for the sole purpose of delivering expatriate children. The added costs of this 'doctor trade' are now being subsidized by sky-rocketing medical prices. International hospitals in China have been quick to cover these costs by taking advantage of international expatriate medical insurance policies with virtually no limit on maternity care. The end result can now be seen in international-level maternity costs in China that average between US$8,645 - US$11,970. These prices are well above the US federal average of US$ 7,600.
The costs of treatments at the hospitals and clinics frequented by expatriates in China have climbed so suddenly steeply that foreign nationals may not be able to cope. Very few people have the ability to afford a US$18,620 appendectomy at a hospital like Shanghai United, even if they are from the USA (where the federal average for an appendectomy is US$18,500). but many expatriates around the country feel that being comfortable with their doctors and treatment options is worth these ever increasing costs.
The lone area in which expatriate medical care in China is less than the average cost of care in the USA is Dental treatment. Not all medical centers targeting the expatriate market will offer dental services, however for those that do the costs can actually be lower than those associated with treatment in the USA; a simple cavity filling, for example, for an expatriate in China can cost between US$90 - US$266 where the same service in the USA will normally cost US$300 on average. This should come as no great surprise however, as many expatriates throughout China are accustomed to dental treatments being lower in price than in their home countries.
These enormous increases in expatriate treatment costs have placed a tremendous strain on the international insurance companies operating and providing coverage in the Chinese market. As a result many insurers are raising basic premium costs to levels close to those on plans offering medical coverage in the USA. In the future, we can expect to see most international insurance companies imitating current USA insurance exclusions, by classing China as a separate geographical healthcare region independent of the rest of Asia and with higher insurance premiums. While this will mean more expensive health and medical insurance premiums for expatriates in the country, it will continue to assure foreign nationals the desired treatment with the doctors of their choice.
Healthcare for expatriates in China is becoming more and more expensive. Higher insurance premiums will remain a necessity for those not wishing to visit an overcrowded and often confusing public hospital. While insurance premiums have risen, current demand for international medical insurance remains high. For insurance coverage that offers greater comfort, superior standards of treatment, cutting-edge medical technology and multilingual medical staff, it appears most expatriates are willing to pay the price.
