China has made a significant move in its healthcare sector, allowing foreign investors to fully own luxury hospitals in major cities like Beijing, Shanghai, and Guangzhou. This opens doors for international healthcare providers to establish their presence in the Chinese market, particularly in the high-end medical services segment. This decision is part of China’s larger plan to modernize its healthcare infrastructure and improve access to premium medical care for its citizens.
These new hospitals, according to the South China Morning Post, will not only cater to affluent patients but will also be permitted to offer cutting-edge medical treatments, including human stem cell and gene therapy services. However, these advanced services will be initially restricted to designated free-trade zones as part of a pilot program. The inclusion of such high-tech treatments aligns with China’s ambition to become a global leader in biotechnology and personalized medicine.
This policy is expected to attract significant foreign investment, further integrating China’s healthcare sector into the global market. By allowing foreign ownership, China aims to stimulate economic growth and enhance its healthcare system by bringing in world-class expertise, technologies, and practices. This initiative is part of the government’s broader strategy to attract foreign capital and innovation across various sectors, with healthcare being a focal point in this phase of reform.
While China’s medical tourism industry is still in its nascent stages, the country is positioning itself for rapid expansion in the coming years. In contrast, India has already established itself as a global leader in medical tourism, attracting patients from around the world for cost-effective yet high-quality treatments.
India’s medical tourism sector has witnessed remarkable expansion over the last decade. In 2020, the country hosted 183,000 medical tourists, a number that surged to 304,000 in 2021 and increased further to 475,000 in 2022. By October 2023, India had already provided treatment to more than 500,000 international patients. Looking ahead, forecasts for 2024 predict that the number of medical tourists could rise to an impressive 700,000.
India’s medical tourism market is expected to reach a valuation of approximately $10.3 billion this year. Forecasts indicate it will maintain a strong compound annual growth rate (CAGR) of 17.2% over the next decade, potentially surpassing $50.7 billion by 2034, as highlighted in a report by Future Markets Insights. This impressive growth is fueled by India’s offering of top-tier medical facilities, highly skilled healthcare professionals, and affordable treatment options, making the country a preferred destination for international patients seeking quality care.
China has entered the competitive medical tourism market, emphasizing advanced treatments like gene therapy and biotechnology. Although official data on medical tourists in the country is still unavailable, China’s dedication to biotechnology and cutting-edge medical procedures indicates its goal to draw high-value medical tourists. The country is particularly targeting those in search of specialized and innovative healthcare solutions.
India’s leading position in the medical tourism industry is largely attributed to its affordability. Medical procedures in India are significantly less expensive compared to those in developed nations and even some Southeast Asian countries. For instance, while knee replacement surgery in the US can cost around $40,000 (approximately ₹33.6 lakh), the same procedure in India is available for about $8,500 (around ₹7 lakh), offering exceptional care and high-quality services.
In December of last year, the Ministry of Health and Family Welfare in India revealed plans to provide loans amounting to $14.8 billion to strengthen healthcare infrastructure and offer working capital to businesses in the tourism sector. This investment is primarily directed toward tier-II and tier-III cities, where leading healthcare providers like Apollo, Fortis, Max Healthcare, and the Manipal Group are building cutting-edge hospitals. The expansion into these regions is essential, as it enhances access to advanced medical treatments for a broader population.
China’s medical tourism strategy is largely focused on drawing international investment into its healthcare sector. The country has made significant strides in developing high-tech medical infrastructure; however, certain restrictions still apply. Foreign investors are barred from acquiring public hospitals or entering industries related to traditional Chinese medicine, limiting their involvement to specific areas of healthcare innovation and services. Rather than immediately attracting a large influx of medical tourists, China appears to be prioritizing long-term growth through advanced research and cutting-edge treatments. This approach aims to position China as a leader in specialized medical care, banking on the future potential of its medical tourism industry rather than relying on immediate high patient volumes.
