China’s current healthcare market is made up of both public and private insurance programs. Most public health insurance providers only cover about half of medical costs, and even less for more serious or chronic issues. Private insurance programs boast better coverage. About 95% of the population has at least basic health insurance coverage, which is much better than most other developing countries.
China has the longest recorded history of medical records of any nation in the world. A tradition deeply rooted in culture, healthcare has been on the forefront of Chinese culture for more than a few millennia. The specialty of this kind of history can prove to be good for market leaders, and many believe is primed for a new reliable leader in the industry.
China’s online healthcare market, like other markets in China, has more potential that most other developed countries can strive to achieve. The market is fresh, new, many people don’t know what to make of it yet. Without current heavy-handed market movers, new businesses are able to spring up and maintain business for a time. The problem is, though, that there hasn’t been much innovation in the area as of late, with some analysts claiming health insurance has a tad of social stigma.
China’s healthcare market problems are also now very prevalent. Not only with the shady not very marketable “scams”, but big companies as well. Citizens with terminal or chronic illnesses are turning to healthcare providers for assistance but receive scams instead which do not help them with any treatment costs but take all of their money.
These problems are extremely pervasive, meaning that China’s online healthcare ecosystem needs to innovate in one particular area that many markets in China lacks today: trust. Across the entire spectrum, China’s healthcare sector is deeply lacking in trust. This is why platforms like CareVoice, an app that can be thought of almost like the healthcare equivalent to Yelp! are making so much progress in China. CareVoice allows Chinese users to share and rate their experiences with particular physicians and hospitals, all with an eye towards the critical problem of trust.