CHINA

China’s Health Care Costs Shift to Individuals as Government Share Shrinks

Published: Dec. 4, 2025 11:44 a.m. GMT+8

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The outpatient department of the Chinese Academy of Medical Sciences Fuwai Hospital in Beijing on April 16, 2025. Photo: VCG

China’s citizens are shouldering a growing share of the nation’s health care bill as government spending shrinks, while the country's hospital system consolidates around elite institutions, a trend that is emptying out smaller local providers and starting to slow growth at the very top.

The trends were detailed in the “2024 Statistical Communiqué on the Development of China’s Health Undertakings,” a report released Saturday by the country’s National Health Commission.

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This is an AI-generated English rendering of original reporting or commentary published by Caixin Media. In the event of any discrepancies, the Chinese version shall prevail.

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Government share of China’s health spending fell to 24.9% in 2024, while individuals’ out-of-pocket share rose to 27.5%.
Level 3 hospitals’ inpatient share reached 51.6% in 2024, as lower-tier hospitals faced stagnation and patient loss.
Total health spending was 9.09 trillion yuan (6.7% of GDP), with growth at top-tier hospitals slowing to the lowest since 2016 (ex. pandemic years).

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Who’s Who

Latitude Health: Latitude Health is a medical strategy consulting firm. They conducted an analysis highlighting the imbalance in China's healthcare system, noting that Level 3 hospitals are increasingly dominating the market. They also observed that the growth rate for Level 3 hospitals is slowing, suggesting a long-term adjustment period for the hospital sector.

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