Given the global population’s rising average age and the Earth’s overpopulation, especially in Asia, there has been an increasing focus on developing medical technology in the past two decades. Medical technological advances such as robotic surgery, genome editing, and wireless monitoring have revolutionized the industry.
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Infiniti Research offers a variety of healthcare market intelligence solutions (Graphic: Business Wire)
Healthcare systems in China and Japan
As some of the largest medical device markets, China and Japan not only create many medical devices used in the respective countries domestically, they also import medical devices. Currently, most medical devices that are imported are of the high-end variety while lower-end devices are made domestically.
While the healthcare systems of Japan and China differ – Japan has universal coverage that covers 70% of costs; over 90% of China has basic coverage, although only 50% of costs are covered, and that percentage is lower if you have a chronic or serious disease – both countries offer reimbursement to vendors that supply them with medical devices. Reimbursement is a huge part of what makes medical device vendors choose to export their products.
The quieter side of the medical devices reimbursement market: Disposables
There are regulations in place regarding exporting large medical devices (such as machines) to Asian countries and receiving reimbursement, but not as much has been done about disposable medical devices, like wound care dressings. However, the market is ready for more foreign medical device companies to enter it.
In China, foreign products are often viewed as more reliable than domestic ones, so foreign vendors have a natural entrance into the Chinese market. The downside of exporting to China is that reimbursement is minimal and the process is complex to navigate. The complexity stems from the fact that reimbursement varies from city-to-city.
In Japan, due to its universal coverage, all medical devices (including disposables) are purchased through its National Health Insurance (NHI) system. Reimbursement in Japan can be achieved through procedure fees or through product category. The downside of exporting to Japan is that it is reluctant to purchase Western products because of their higher costs and Japan is trying to dampen rising healthcare costs. However, Western vendors focusing on lower-cost products may find a space in the market for them.
Due to the complexity of Japan and China’s medical reimbursement market, companies are turning to market intelligence companies for recent changes in reimbursement policies and an analysis of regulations specific to the product’s reimbursement. These assessments help businesses better understand market structure, price caps, regulatory compliances, impact of the regulatory compliances on product prices, and reimbursement figures for its products across target regions.
Infiniti Research offers expert market intelligence covering 100 countries in over 30 languages, providing actionable insights to help companies stay ahead of the curve and identify future market opportunities before their competitors. Infiniti’s specialized research analysts have completed thousands of successful projects for Fortune 500 companies, including leading vendors in the medical devices and pharmaceuticals industries who were looking to compete with competitors in China and Japan.
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About Infiniti Research
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