The grassroots medical market is set to keep hot in 2025.
The executive meeting of the State Council on January 17 heard a report on optimizing the layout and construction of grassroots medical and health institutions.
The meeting noted that grassroots medical and health institutions are the first line of defense in safeguarding people’s health. It is important to overall plan for the present and the long term, comprehensively consider integrated urban-rural development, demographic shifts, and the public’s health needs, and improve the construction and layout according to local conditions, to provide greater convenience for people seeking medical services nearby.
The meeting emphasized the need to strive to enhance basic medical services at the grassroots level, improve clinical department setting and medical equipment allocation, expand the variety of drugs available at the grassroots level, strengthen medical staff training, and enhance prevention, treatment, and rehabilitation capabilities for chronic and common diseases. The meeting also stressed the importance of actively advancing the building of the hierarchical diagnosis and treatment system, bringing into play the roles of medical insurance payment and price control, guiding patients to seek their first consultation at grassroots institutions using telemedicine and other information means, and advancing family doctor contracting services, to provide residents with comprehensive lifecycle health services.
The grassroots market is currently an important area for medical equipment market expansion. With great attention from the state level, the construction of grassroots medical institutions has been in full swing in recent years, and medical equipment allocation and renewal as well as the transfer of medical technology to the grassroots level have brought new business opportunities.
A press conference held by the National Health Commission last November noted that in terms of system development and capacity enhancement, China has fully rolled out the construction of closely-knit county-level medical and health communities and continued to launch the “Quality Services for the Grassroots” activity. So far, 2,171 counties/districts have initiated the construction of closely-knit county-level medical and health communities, achieving a full rollout province by province.
A total of 35,600 township/town health centers and community health service centers in the country have reached service capability standards. Efforts have been made to enhance key departments at the grassroots level, including general practice, traditional Chinese medicine, rehabilitation, and pediatrics, with a focus on strengthening pediatric service capabilities over the past two years. Currently, pediatric services are available from 80% of township/town health centers and community health service centers nationwide.
In accordance with the Notice on Implementing the “Quality Services for the Grassroots” Activity and the Three-Year Action for Community Hospital Construction, by 2025, township/town health centers and community health service centers serving more than 10,000 people should generally meet capability standards, and institutions meeting the recommended standards should account for over 20% nationwide, with over 30%, 20%, and 10% reached in eastern, central, and western provinces, respectively; institutions serving fewer than 10,000 people or with fewer than 10 staff members should continue to improve service capabilities against standards. More than 500 new community hospitals should be added in the country each year, with the goal that the cumulative proportion of community health service centers built into community hospitals reaches over 30% by 2025.
In accordance with the Guiding Opinions on Comprehensively Advancing the Construction of Closely-Knit County-Level Medical and Health Communities, the construction of closely-knit county-level medical and health communities should be fully rolled out province by province by the end of June 2024. By the end of 2025, over 90% of counties (or county-level cities; city districts with appropriate conditions should do it similarly, the same below) in the country should strive to basically complete county-level medical and health communities characterized by a reasonable layout, unified management of personnel, funds, and property, clearly defined rights and responsibilities, efficient operation, division of labor and collaboration, continuous service, and information sharing. By the end of 2027, closely-knit county-level medical and health communities should basically achieve full coverage in the country.
Since the second half of last year, medical equipment renewal projects have begun to show substantial advancement, and in 2025, medical equipment renewal has entered a new stage.
On January 5, the National Development and Reform Commission and the Ministry of Finance issued the Notice of the National Development and Reform Commission and the Ministry of Finance on Intensifying the Implementation of Large-Scale Equipment Renewal and Consumer Goods Trade-in Policies in 2025, which mentions increasing support for equipment renewal projects in key areas: the issuance of ultra-long special treasury bonds will be increased to provide financial support for equipment renewal in key areas, and while continuing to support the renewal of industrial equipment, energy-consuming equipment, equipment for energy and power, transportation, logistics, environmental infrastructure, education, culture and tourism, and medical care, and old elevators, the scope of support will be further expanded to include fields of electronic information, work safety, and facility agriculture, with a focus on supporting the applications of high-end, intelligent, and green equipment;
Furthermore, in-depth assessments and diagnoses of existing equipment in industrial, agricultural, energy, construction, transportation, education, culture and tourism, and medical fields will be conducted and equipment renewal goals and implementation plans for each field and industry will be defined.
In this process, the demand for equipment renewal at the county level will be unleashed.
According to estimates from MDDI, as of the end of September last year, in the equipment renewal projects of county-level medical and health communities, about 22% of the budget amount had been allocated to the procurement intention stage, and about 5.10% to the bidding stage; in such projects of city hospitals, the figures were about 17.32% and 4.59%, respectively.
In 2025, the implementation of equipment renewal projects is accelerating. According to Joinchain’s data, as of January 5, the total budget disclosed in announcements of medical equipment renewal tenders in China has reached RMB 8 billion.
Industry insiders have stated that equipment renewal must first tackle areas of weaknesses, and currently, high-end medical equipment remains a weakness in China because such equipment is mainly concentrated in large cities and Grade A tertiary hospitals; secondly, equipment renewal must resolve the issues of county-level medical and health communities, such as those concerning imaging centers, radiation therapy, telemedicine, and surgical robots.
Previously, equipment renewal projects were already underway in county-level medical and health communities in Hebei, Henan, and Zhejiang.
Given the development prospects of county and grassroots markets, major enterprises are paying more attention to grassroots markets. In particular, leading medical device enterprises are deeply involved in developing grassroots markets.
For example, in response to requirements for county-level healthcare facilities, such as “20 centers,” “at least one nuclear medicine department per county,” and “closely-knit county-level medical and health communities,” GE Healthcare has customized one-stop renewal solutions to upgrade old hospital equipment to new generations, achieving one-to-one renewal for equipment including CT, MR, nuclear medicine, and angiography machines, and DXR, C-arm, ultrasound, anesthesia, monitor, and ECG equipment. Taking the construction of chest pain and stroke centers as an example, GE Healthcare has launched an equipment renewal solution centered on a 256-slice ultra-high-end CT machine, complemented by the Vivid E90 cardiac ultrasound system. This solution focuses on cardiovascular and cerebrovascular examinations and enables interventional treatment, anesthesia, and monitoring, helping hospitals achieve renewal with a better quality-price ratio and allowing high-end equipment to benefit clinical practice and grassroots levels more extensively and rapidly and with better cost performance.
Medtronic began its layout and established a regional growth initiative team as early as 2013. This team has continuously brought Medtronic’s advanced therapies to the grassroots. By providing innovative medical solutions for multiple departments and therapies associated with coronary heart disease, cardiac rhythm management, orthopedics, neurosurgery, surgery, and diabetes, this team has introduced Medtronic’s advanced technologies and therapies to nearly 800 counties and 1,300 hospitals, currently serving over 240,000 patients annually.
Mindray Bio-Medical stated in its 2024 semi-annual report that as medical investment and resources continue to shift to the grassroots level, hospitals and healthcare facilities at and below the county level will gradually become key targets for further development, bringing greater development opportunities for the grassroots medical device market.
In 2025, the path to revitalization in the grassroots medical market will continue to extend.
Source: Saibailan Devices
01
Executive meeting of the State Council: Improving clinical department setting and medical equipment allocation
Executive meeting of the State Council: Improving clinical department setting and medical equipment allocation
The executive meeting of the State Council on January 17 heard a report on optimizing the layout and construction of grassroots medical and health institutions.
The meeting noted that grassroots medical and health institutions are the first line of defense in safeguarding people’s health. It is important to overall plan for the present and the long term, comprehensively consider integrated urban-rural development, demographic shifts, and the public’s health needs, and improve the construction and layout according to local conditions, to provide greater convenience for people seeking medical services nearby.
The meeting emphasized the need to strive to enhance basic medical services at the grassroots level, improve clinical department setting and medical equipment allocation, expand the variety of drugs available at the grassroots level, strengthen medical staff training, and enhance prevention, treatment, and rehabilitation capabilities for chronic and common diseases. The meeting also stressed the importance of actively advancing the building of the hierarchical diagnosis and treatment system, bringing into play the roles of medical insurance payment and price control, guiding patients to seek their first consultation at grassroots institutions using telemedicine and other information means, and advancing family doctor contracting services, to provide residents with comprehensive lifecycle health services.
The grassroots market is currently an important area for medical equipment market expansion. With great attention from the state level, the construction of grassroots medical institutions has been in full swing in recent years, and medical equipment allocation and renewal as well as the transfer of medical technology to the grassroots level have brought new business opportunities.
A press conference held by the National Health Commission last November noted that in terms of system development and capacity enhancement, China has fully rolled out the construction of closely-knit county-level medical and health communities and continued to launch the “Quality Services for the Grassroots” activity. So far, 2,171 counties/districts have initiated the construction of closely-knit county-level medical and health communities, achieving a full rollout province by province.
A total of 35,600 township/town health centers and community health service centers in the country have reached service capability standards. Efforts have been made to enhance key departments at the grassroots level, including general practice, traditional Chinese medicine, rehabilitation, and pediatrics, with a focus on strengthening pediatric service capabilities over the past two years. Currently, pediatric services are available from 80% of township/town health centers and community health service centers nationwide.
In accordance with the Notice on Implementing the “Quality Services for the Grassroots” Activity and the Three-Year Action for Community Hospital Construction, by 2025, township/town health centers and community health service centers serving more than 10,000 people should generally meet capability standards, and institutions meeting the recommended standards should account for over 20% nationwide, with over 30%, 20%, and 10% reached in eastern, central, and western provinces, respectively; institutions serving fewer than 10,000 people or with fewer than 10 staff members should continue to improve service capabilities against standards. More than 500 new community hospitals should be added in the country each year, with the goal that the cumulative proportion of community health service centers built into community hospitals reaches over 30% by 2025.
In accordance with the Guiding Opinions on Comprehensively Advancing the Construction of Closely-Knit County-Level Medical and Health Communities, the construction of closely-knit county-level medical and health communities should be fully rolled out province by province by the end of June 2024. By the end of 2025, over 90% of counties (or county-level cities; city districts with appropriate conditions should do it similarly, the same below) in the country should strive to basically complete county-level medical and health communities characterized by a reasonable layout, unified management of personnel, funds, and property, clearly defined rights and responsibilities, efficient operation, division of labor and collaboration, continuous service, and information sharing. By the end of 2027, closely-knit county-level medical and health communities should basically achieve full coverage in the country.
02
Accelerated implementation of equipment renewal projects
Intensified competition in the medical device market
Accelerated implementation of equipment renewal projects
Intensified competition in the medical device market
Since the second half of last year, medical equipment renewal projects have begun to show substantial advancement, and in 2025, medical equipment renewal has entered a new stage.
On January 5, the National Development and Reform Commission and the Ministry of Finance issued the Notice of the National Development and Reform Commission and the Ministry of Finance on Intensifying the Implementation of Large-Scale Equipment Renewal and Consumer Goods Trade-in Policies in 2025, which mentions increasing support for equipment renewal projects in key areas: the issuance of ultra-long special treasury bonds will be increased to provide financial support for equipment renewal in key areas, and while continuing to support the renewal of industrial equipment, energy-consuming equipment, equipment for energy and power, transportation, logistics, environmental infrastructure, education, culture and tourism, and medical care, and old elevators, the scope of support will be further expanded to include fields of electronic information, work safety, and facility agriculture, with a focus on supporting the applications of high-end, intelligent, and green equipment;
Furthermore, in-depth assessments and diagnoses of existing equipment in industrial, agricultural, energy, construction, transportation, education, culture and tourism, and medical fields will be conducted and equipment renewal goals and implementation plans for each field and industry will be defined.
In this process, the demand for equipment renewal at the county level will be unleashed.
According to estimates from MDDI, as of the end of September last year, in the equipment renewal projects of county-level medical and health communities, about 22% of the budget amount had been allocated to the procurement intention stage, and about 5.10% to the bidding stage; in such projects of city hospitals, the figures were about 17.32% and 4.59%, respectively.
In 2025, the implementation of equipment renewal projects is accelerating. According to Joinchain’s data, as of January 5, the total budget disclosed in announcements of medical equipment renewal tenders in China has reached RMB 8 billion.
Industry insiders have stated that equipment renewal must first tackle areas of weaknesses, and currently, high-end medical equipment remains a weakness in China because such equipment is mainly concentrated in large cities and Grade A tertiary hospitals; secondly, equipment renewal must resolve the issues of county-level medical and health communities, such as those concerning imaging centers, radiation therapy, telemedicine, and surgical robots.
Previously, equipment renewal projects were already underway in county-level medical and health communities in Hebei, Henan, and Zhejiang.
Given the development prospects of county and grassroots markets, major enterprises are paying more attention to grassroots markets. In particular, leading medical device enterprises are deeply involved in developing grassroots markets.
For example, in response to requirements for county-level healthcare facilities, such as “20 centers,” “at least one nuclear medicine department per county,” and “closely-knit county-level medical and health communities,” GE Healthcare has customized one-stop renewal solutions to upgrade old hospital equipment to new generations, achieving one-to-one renewal for equipment including CT, MR, nuclear medicine, and angiography machines, and DXR, C-arm, ultrasound, anesthesia, monitor, and ECG equipment. Taking the construction of chest pain and stroke centers as an example, GE Healthcare has launched an equipment renewal solution centered on a 256-slice ultra-high-end CT machine, complemented by the Vivid E90 cardiac ultrasound system. This solution focuses on cardiovascular and cerebrovascular examinations and enables interventional treatment, anesthesia, and monitoring, helping hospitals achieve renewal with a better quality-price ratio and allowing high-end equipment to benefit clinical practice and grassroots levels more extensively and rapidly and with better cost performance.
Medtronic began its layout and established a regional growth initiative team as early as 2013. This team has continuously brought Medtronic’s advanced therapies to the grassroots. By providing innovative medical solutions for multiple departments and therapies associated with coronary heart disease, cardiac rhythm management, orthopedics, neurosurgery, surgery, and diabetes, this team has introduced Medtronic’s advanced technologies and therapies to nearly 800 counties and 1,300 hospitals, currently serving over 240,000 patients annually.
Mindray Bio-Medical stated in its 2024 semi-annual report that as medical investment and resources continue to shift to the grassroots level, hospitals and healthcare facilities at and below the county level will gradually become key targets for further development, bringing greater development opportunities for the grassroots medical device market.
In 2025, the path to revitalization in the grassroots medical market will continue to extend.
Source: Saibailan Devices