China's elderly offer opening for West's healthcare companies

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http://www.atimes.com/atimes/China_Business/MI14Cb01.html

Providing care for China's aging population has long been one of the most promising market opportunities the country has to offer. For over a decade, Western operators of eldercare facilities have looked at the China market as a key growth opportunity for their industry.

Last week's announcement by Seattle-based Cascade Healthcare that it was opening a new eldercare facility in Shanghai is the first major investment by a North American eldercare operator, but is anticipated to be only the first wave of such investments.

According to a recent statement by Li Jianguo, vice chairman and general secretary of the Standing Committee of the National People's Congress (NPC), "3.4 million beds will have to be added


in five years" and this is the very front end of a demographic tsunami that will by 2050 leave more people in China older than 65 than younger. For a country with an incomplete social safety net, this is both a compelling business opportunity as well as a potential source of social instability.

While the promise of foreign investment in this sector is likely to address some of this need, it will initially be the upper-end of the market that first benefits as Western eldercare operators expand into China. The faster Beijing can encourage foreign investment into this sector the swifter a proven business model becomes clear and solutions for the mid-market emerge.

[aquart]

1. China doesn't provide health care?