China’s Hospital Sector Contracts for First Time in Five Years as Private Providers Face Growing Pressure
Liao Shumin
DATE:  2 hours ago
/ SOURCE:  Yicai
China’s Hospital Sector Contracts for First Time in Five Years as Private Providers Face Growing Pressure China’s Hospital Sector Contracts for First Time in Five Years as Private Providers Face Growing Pressure

(Yicai) Aug. 31 -- The number of hospitals and hospital beds in China fell last year for the first time in five years, as authorities moved to control hospital expansion and private hospitals faced mounting operating pressure.

China had about 38,160 hospitals at the end of 2025, down 1 percent, or around 550, from a year earlier, almost 90 percent of which were private hospitals, according to a recent statistical bulletin released by China’s National Health Commission. Meanwhile, the number of primary-level medical and health institutions rose by 16,500.

The number of beds at medical and health institutions nationwide fell 3 percent, or 259,000, to 10 million at the end of last year. Hospitals with 800 or more beds decreased by 51, while those with 500 to 799 beds fell by 25.

Despite the contraction in hospitals and beds, China’s healthcare workforce continued to expand. The country had nearly 13.5 million health technicians at the end of last year, up 435,000 from a year earlier, with 3.25 practicing physicians and 4.32 registered nurses per 1,000 people and 4.91 general practitioners per 10,000 people.

Patient visits to medical and health institutions nationwide reached almost 10.7 billion last year, an increase of 510 million from 2024. But hospital admissions fell by 12.8 million, reversing the upward trend in hospitalization rates seen over the previous two years.

Treatment Costs Decline

Outpatient and inpatient treatment costs also fell last year. The average outpatient cost per hospital visit was CNY358 (USD53), down 1 percent from a year earlier at current prices, while the average inpatient cost per admission dropped 1 percent to CNY9,769 (USD1,453). The average daily inpatient cost was CNY1,138.

The share of drug expenses in medical costs also declined amid the coordinated implementation of policies including centralized drug procurement, national drug-price negotiations, and reforms to medical insurance payment methods.

The average inpatient drug cost per hospital admission was CNY1,869 last year, accounting for 19 percent of the average inpatient cost and falling below 20 percent. Five years earlier, inpatient drug expenses accounted for nearly 30 percent of the average inpatient cost.

Editor: Emmi Laine

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