How global tech can drive local healthcare innovation in China

healthccare

(Luis Melendez, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum. Author: Andy Ho, CEO, Philips Greater China
With an ageing population rapidly increasing the rate of disease, China’s healthcare system is ripe for innovation.
From established corporations to fledgling startups, all recognize the potential for digital technologies, such as telehealth and artificial intelligence, to alleviate China’s overstretched healthcare professionals and help provide better care.
In fact, the 2019 Future Health Index from Philips, which surveyed healthcare professionals in 15 countries around the world, shows that China is leading the way in adoption of digital health technology.
However, global health technology innovators looking to China face barriers – including a medical and digital infrastructure that is vastly different from other countries, unique regulatory demands, and a lack of affordability of existing solutions for more widespread use in rural or impoverished regions.
How to overcome such barriers? To help make China’s healthcare system fit for the future, I believe that global health technology companies need to rethink the traditional model of importing medical products developed in western markets. Today, the key to successful innovation lies in having a deep understanding of market-specific needs and challenges, and the ability to forge local partnerships – while also keeping an eye on best practices in other healthcare systems. In other words, by combining a local and a global mindset.
Healthcare services in China are spread unevenly
One problematic aspect of China’s healthcare system that calls for locally relevant innovation is the uneven distribution of resources across the country.
Major cities in China offer access to top-tier hospitals, but many other cities and rural areas do not. This problem is exacerbated by a lack of primary care facilities. China has one general practitioner for every 6,666 people, compared to an international standard of one for every 1,500-2,000 people, according to the World Health Organization.
This causes people to flock to hospitals, sometimes travelling hundreds of miles, only to find themselves queuing up in increasingly long lines. Many hospital specialists are overworked, sometimes seeing as many as 200 patients a day.
Clearly, from the perspective of a global health technology provider, what’s needed here is an approach that transcends the traditional model of importing technological innovations and fitting them into the existing local healthcare system.
As Klaus Schwab, founder and executive chairman of the World Economic Forum, pointed out when he introduced the notion of “leadership 4.0” in 2016, innovation today needs to look at systems, not merely technologies. I couldn’t agree more.
Equipping China’s top-tier hospitals with the latest medical equipment can certainly help to further improve care in those hospitals. But to increase access to care across the country, new types of solutions are needed. Technological innovation needs to go hand-in-hand with locally relevant business models that transform the current system and improve care for all.
Improving access and affordability of care
What does this look like in practice? To serve the unmet needs of patients in China’s remote and less affluent regions, we need to create new ways to make medical expertise more widely available. One way of doing this is by connecting top-tier hospitals to smaller hospitals and primary care facilities that are closer to patients. This allows them to share resources and expertise in order to provide quality care at lower cost across the nation.
Take lung cancer as an example – the leading cause of cancer death in China. According to the China Cancer Foundation, nearly 70% of lung cancer patients in China are diagnosed and treated in a late stage, when their five-year survival rate is less than 5%. Patients would benefit from earlier screening using medical images such as CT scans. However, many of China’s healthcare facilities outside the wealthiest cities do not have the necessary financial resources, staff, or technology to provide such radiology services.
In 2018, Philips struck a partnership with Digital Health China, the largest provider of cloud-based healthcare services in China, to jointly launch a tele-radiology platform. The platform allows radiological images and associated patient information to be remotely viewed and analysed by clinical experts anywhere in the country, so that patients can receive treatment via their local healthcare facility, wherever they are. Unlike traditional business models, which require larger investments from hospitals upfront, a pay-per-use arrangement makes the platform affordable even for smaller hospitals.
This is just one of many examples that demonstrate how a combination of technology, new business models, and local partnerships can fuel innovation tailored to local needs.
Listening to the voice of the patient is equally important. Patients in China may have different needs and expectations than those in other countries. Interestingly, the Chinese population also seems poised to further embrace telehealth. According to the 2019 Future Health Index, people in China are among the most likely to say that, if given the choice, they would prefer a consultation with their doctor remotely via a digital channel for non-urgent care.
While a sensitivity to local needs is essential, there are also learnings to be drawn from other countries when it comes to telehealth. There is where a global outlook provides a useful perspective. Importantly, we know from telehealth programmes in other countries that their success ultimately depends on payers receiving reimbursement. In this light, it is encouraging to see that in provinces such as Guizhou, certain telemedicine services are now reimbursable under the Chinese social insurance program.
Organizing innovation for local impact
As I can testify from my experience as Market Leader for Philips Greater China, developing locally relevant solutions requires more than an understanding of China’s healthcare system and the local needs of caregivers and patients. It also demands an entirely different way of organizing innovation.
When health technology innovation was focused on delivering improved hardware such as higher-resolution CT scanners, it used to be centrally led. Innovations were rolled out to markets in a one-size-fits-all manner that relied on a multi-tiered network of local distributors.
Today, as the example of tele-radiology shows, innovation involves an interplay of medical systems, software, and services, often delivered via new business models. This calls for much closer collaboration; not only with healthcare providers and specialized partners, but also with government organizations, industry associations, private insurers, and other stakeholders.
That’s why local innovation facilities have become essential to the way global health technology companies operate. These facilities integrate traditional R&D capabilities with knowledge of local market dynamics, health economics, and business model innovation. They tap into local as well as global resources, with the aim of delivering innovations that are relevant to Chinese healthcare providers and patients.
Navigating China’s regulatory waters
Another crucial capability to add to this collaborative mix is knowledge of local regulations. Navigating regulatory waters in China can be challenging. For example, one study looked at innovative technologies cleared by the US Food and Drug Administration (FDA) between 2010 and 2014, and found that only 38% of them had been approved and brought into China by mid-2015 – with regulation being one of the main hurdles.
For technologies that are still in a nascent stage in healthcare, such as artificial intelligence, the situation is even more complex because regulations need further development. This is where I see an opportunity for health technology providers to intensify collaboration with local regulatory bodies. Together, we can create the conditions for safe and responsible innovation across the industry.
Local learnings, global relevance
Ultimately, I believe global actors can drive local innovation in healthcare if we combine an appreciation of local market realities with a broader global mindset.
Many of today’s challenges in healthcare are not unique to China or any one country, despite the different ways their healthcare systems are organized. Other regions around the world face similar challenges of providing care to growing and ageing populations across dispersed areas. We can all learn from each other.
With China already leading the way in adoption of digital health technology such as telehealth, it could inspire other countries to follow suit – using local learnings to improve healthcare worldwide.

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© UNICEF-SoP/Crickx People walk down a dusty road in the West Bank carrying belongings.

West Bank: UN rights report warns of forcible displacement from three refugee camps

This article is published in association with United Nations. Israeli security forces forcibly displaced the entire population of three Palestine refugee camps in the occupied West Bank in January and February last year – and continue to prevent their return, in violation of international law, according to a new report by the UN human rights office, OHCHR. […]
©UNIFIL/Tilak Pokharel UNIFIL personnel distribute food kits to displaced families in Saida, Lebanon.

Lebanon–Israel tensions escalate as Gaza sees major aid delivery

This article is published in association with United Nations. Peacekeepers in Lebanon have reported a marked deterioration in the security situation along the Blue Line of separation, with Israeli forces intensifying their military footprint in violation of a landmark Security Council resolution, UN Spokesperson Stéphane Dujarric said on Thursday. Meanwhile, in Gaza, humanitarian teams collected hundreds […]
This article is brought to you in association with the European Commission.

World News in Brief: US-Iran war intensifies, aid for Myanmar, casualties in Ukraine

This article is published in association with United Nations. Fighting between the United States and Iran has sharply escalated after a month-long lull, with the two sides exchanging strikes as fears grow over further civilian casualties. The US military struck rocket launchers on an island in the Strait of Hormuz over the weekend, days after US […]
© WFP/Hugh Rutherford A family eat lunch in the Bedouin community of Umm Al Khair, West Bank.

Food aid cutback in the occupied West Bank as health fears grow in Gaza

This article is published in association with United Nations. Lack of funding has forced the World Food Programme (WFP) to slash aid to families in the West Bank by half even though needs have more than doubled over the past two years. “We’re running out of funding, and that means that from today, some 200,000 people […]
© UNICEF/Laxmi Prasad Ngakhusi Mud covers Nuwakot district in central-northern Nepal following devastating flash floods.

Nepal flooding deaths surpass 900 as needs climb

This article is published in association with United Nations. The confirmed death toll from Nepal’s catastrophic floods has surged to 903, with more than 4,200 still missing as rescue crews and humanitarian workers battle blocked highways to reach the hardest-hit areas, UN Spokesperson Stéphane Dujarric said on Monday. Key points Triggered by a glacier collapse and […]
© WFP/Mohamad Al Hinnawi Brothers sitting outside their family’s tent in Gaza.

Four children killed as separate attacks in Gaza destroy aid supplies

This article is published in association with United Nations. Israeli attacks killed four children and destroyed humanitarian aid supplies in what turned out to be a deadly week in war-ravaged Gaza, the UN emergency relief agency, OCHA, said on Friday. Key points According to UNICEF, the four children – aged two to 16 – were reportedly […]
© UNICEF Buildings are submerged in mud following flash floods in Rasuwa district in central-northern Nepal.

Deadly floods cause widespread destruction in China, Nepal

This article is published in association with United Nations. Severe flooding in China and Nepal caused widespread destruction and mounting death tolls, UN agencies reported on Wednesday as aid efforts deployed to help provide emergency assistance. UN agencies and humanitarian partners are already providing support to local authorities, said UN Spokesperson Stéphane Dujarric. “The Secretary-General is […]
This article is published in association with European Investment Bank.

As wars spread, the global food system unravels

This article is published in association with United Nations. A family with four children abandoned its farm in Somalia after armed groups arrived and demanded payments for the right to continue cultivating the land. They walked roughly 100 kilometers to a displacement camp. One of the children died along the way. Carl Skau, the acting head […]
This article is published in association with United Nations.

Gaza: Children still at risk despite drop in acute hunger

This article is published in association with United Nations. Among tent cities pitched on the rubble of destroyed homes in Gaza, children are, by one measure, finally getting enough to eat. By another, however, many of them may never fully recover, according to a new study by the UN Children’s Fund (UNICEF) released on Monday. Key points Hunger […]
UN Photo/Elma Okic Secretary-General of the International Telecommunication Union (ITU) Doreen Bogdan-Martin speaks at the AI for Good Global Summit in Geneva. (file)

AI for Good: How the UN uses AI to advance human rights

This article is published in association with United Nations. For Ari, a six-year-old boy with learning difficulties in Jamaica, artificial intelligence (AI) opened the door to something many children take for granted: reading a book in his own language. Thousands of miles away, gold miners in Ethiopia are being screened more quickly for tuberculosis, while communities around […]
This article was exclusively written for The European Sting by Ms. Imane El Maimouni, a 22-year-old fifth-year Moroccan medical student at the Faculty of Medicine and Pharmacy of Casablanca. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on the topic, nor The European Sting’s one.

Who heals the healers?

This article was exclusively written for The European Sting by Ms. Levina Kulembeka, a Medical Doctor from Tanzania passionate about global health. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on […]
© WFP/Mohamad Al Hinnawi Brothers sitting outside their family’s tent in Gaza.

Middle East: 94 per cent need shelter in Gaza, Israel ramps up demolitions in Lebanon

This article is published in association with United Nations. Ninety-four cent of Gaza’s 2.1 million residents need shelter as Israeli gunfire and strikes continue inside the enclave, UN agencies and peacekeepers warned on Thursday. Key points More than four out of five families currently face critical or catastrophic living conditions, which lack fuel, energy and essential […]
© IOM/Lisa George Flooding in Sudan has displaced 20,000 people since June (file).

Sudan war: 200,000 newly displaced as fighting and floods intensify

This article is published in association with United Nations. Intensifying fighting in Sudan has displaced at least another 200,000 people since late 2025, while destructive seasonal floods are compounding the massive humanitarian emergency there, the UN International Organization for Migration (IOM) said on Wednesday. In an alert, the agency also warned that relief access has been […]
© UNRWA/Kazem Abu-Khalaf A girl looks out the window of her home in the Jenin refugee camp in the West Bank, where she and other family members were trapped during an Israeli military operation.

Raising alarm over new illegal Israeli outposts, UN condemns attacks, incitement against Palestinians

This article is published in association with United Nations. Reports of new illegal Israeli outposts in the occupied West Bank raised alarms at UN Headquarters on Wednesday while the UN rights office called on Israel to condemn its national security minister’s words that incite “violence amounting to atrocity crimes” against Palestinians. Key points “The Secretary-General is […]
© IOM/Lisa George Flooding in Sudan has displaced 20,000 people since June (file).

Sudan war: 200,000 newly displaced as fighting and floods intensify

This article is published in association with United Nations. Intensifying fighting in Sudan has displaced at least another 200,000 people since late 2025, while destructive seasonal floods are compounding the massive humanitarian emergency there, the UN International Organization for Migration (IOM) said on Wednesday. In an alert, the agency also warned that relief access has been disrupted further […]
This article is published in association with United Nations.

Gaza: Only three per cent of cropland available to grow food

Amid ongoing deadly hostilities in Gaza, the enclave’s farmers face the increasingly difficult challenge of finding safe land to grow their crops. Satellite images published on Tuesday in news analysis from the UN Food and Agriculture Organization (FAO) and UNOSAT, the UN Satellite Centre, indicate that just three per cent (448 hectares) of the shattered enclave’s […]
© UNOCHA/Themba Linden A UN team inspects an unexploded bomb lying on a main road in Khan Younis, Gaza.

Qusra siege eases as UN reaches trapped families, but crisis deepens in Gaza

This article is published in association with United Nations. Humanitarian workers have reached Palestinian families who had been trapped for days by Israeli settlers in Qusra village in the northern West Bank, the UN said on Monday, as officials warned that the standoff must not become “the new normal.” UN teams on the ground reached the […]
© UNFPA Palestine A woman and two children walk near the city of Jenin in the West Bank.

900 obstacles and counting: West Bank families trapped as aid access shrinks

This article is published in association with United Nations. Humanitarians continue to provide life-saving assistance to people across the Occupied Palestinian Territory despite facing obstacles such as checkpoints, instability and access restrictions, the United Nations said on Friday.  In the West Bank, aid partners warn that their work “is being delayed and limited by a network […]
© UNICEF/Eyad El Baba A nine-year-old girl outside her damaged home in Nuseirat camp in central Gaza.

Gaza: Destruction of buildings rises by nearly 10 per cent since ceasefire

This article is published in association with United Nations. New satellite assessments show the destruction of buildings in Gaza has climbed by nearly 10 per cent since October’s faltering ceasefire between Hamas and Israeli forces aim to end the two-year war, which reduced cities to rubble and displaced more than one million people, UN agencies said […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com