Medical tourism costs in China are over 50% lower than in European and American countries, resulting from the combined effects of policy guidance, cost structure, technological efficiency, and market competition. This phenomenon is analyzed from four dimensions—core cost item comparisons, policy dividends, technological advantages, and market mechanisms—using data and international case studies.
I、Core Cost Components: Significantly Lower Drug, Medical Supplies, and Labor Costs Compared to Europe and the US
(1) Drugs and Medical Supplies: Centralized Procurement and Licensing Policies Drive Down Prices
China has substantially reduced the costs of pharmaceuticals and medical devices through centralized bulk drug procurement and licensed medical policies, representing the core factor behind the cost disparity.
1. Drug Pricing: Centralized Procurement Cuts “Patented Drugs” Prices by Over 90%
China implemented “centralized bulk drug procurement” starting in 2018. This government-led bulk purchasing model forces pharmaceutical companies to bid at low prices. For example:
• Anticancer drugs: PD-1 inhibitors (e.g., pembrolizumab) saw prices drop from ¥300,000/year in Western markets to ¥30,000–50,000/year through medical insurance negotiations (over 80% reduction);
• Chronic disease drugs: Diabetes medications (e.g., semaglutide) dropped from ¥1,500/month in Europe and the U.S. to ¥200/month (87% reduction);
• Vaccines: Through centralized procurement, the price of the 9-valent HPV vaccine fell from ¥1,300/dose to ¥300/dose (77% reduction).
2. Medical Devices: Special Access Reduces Import Costs
As a “pioneering zone for medical tourism,” Hainan's Boao Lecheng allows the use of imported drugs and devices not yet approved domestically (e.g., CAR-T cell therapy drugs, high-end cardiac stents). Through special access negotiations, prices are set at only 60%-70% of European and American market rates. For example:
• An unapproved cancer targeted drug priced at ¥200,000 per course in Europe and the US is available for ¥120,000 per course in Lecheng through special access;
• Imported cardiac stents priced at ¥15,000 each in Europe and the US are available for ¥8,000 in Lecheng (a 47% reduction).
(2) Labor Costs: Public Hospital-Led “Universal Pricing”
China's healthcare system is dominated by public tertiary hospitals (accounting for over 60%), whose pricing is government-guided. Labor costs (physician compensation, nurse wages) are significantly lower than those in private hospitals in Europe and the US.
• Physician Compensation: Chief physicians at Chinese tertiary hospitals earn an average monthly salary of approximately ¥20,000–30,000 (including performance bonuses), while practicing physicians in the U.S. average over $300,000 annually (approximately ¥2.1 million RMB). European physicians earn roughly €80,000–120,000 annually (approximately ¥600,000–900,000 RMB).
• Service Model: Chinese hospitals emphasize “patient-centered care” while avoiding “overmedicalization.” Pricing for examinations and treatments strictly adheres to the National Medical Service Pricing Standards, eliminating “high pricing with low service quality.”
(3) Operating Costs: Government Subsidies Reduce Hospital Burden
China's public hospitals receive government subsidies (covering approximately 30%-50% of costs), which fund infrastructure, equipment procurement, and personnel wages. In contrast, private hospitals in Europe and the U.S. must bear over 80% of their total operating costs. For example:
• Shanghai Ruijin Hospital, a public tertiary hospital, prices its premium international department only to cover costs plus reasonable profit (profit margin around 5%-8%), while the Mayo Clinic in the U.S. operates at a profit margin of 15%-20%.
• The Boao Lvcheng International Medical Tourism Pilot Zone in Hainan enjoys “zero tariffs and low tax rates” policies, exempting hospitals from import duties on medical equipment and reducing initial investment costs.
II、Policy Benefits: Special Medical Permits and Insurance Coverage for Shared Costs
(1) Special Medical Permit Policy: Legal Use of “Unapproved Drugs and Medical Devices”
Through the “Special Medical Permit” policy (limited to designated areas like Hainan's Boao Lecheng), China permits international patients to use imported drugs and medical devices not yet approved domestically. Prices for these products are significantly reduced through government negotiations. For example:
• An imported drug for rare diseases costing ¥500,000/year in Europe/US is available for ¥250,000/year through special access in Lecheng;
• A novel cardiac pacemaker priced at ¥100,000 in Europe/US is offered at ¥50,000 (including installation) under Lecheng's special pricing.
(2) Insurance Coverage: International Insurance + Specialized Policies Reduce Out-of-Pocket Burden
China's medical tourism offers extensive international insurance coverage, with specialized plans (e.g., Lecheng Special Medication Insurance) specifically addressing out-of-pocket costs for high-priced drugs and medical devices, further reducing patient burdens.
• International Commercial Insurance: Covers 70%-100% of medical expenses (e.g., Aetna Insurance), with some plans including “Special Reimbursement for Authorized Drugs and Devices”;
• Lecheng Special Medication Insurance: Annual premium of only ¥3,000, reimbursing 70% of approved drug/device costs (e.g., PD-1 inhibitors, CAR-T cell therapy drugs);
• Travel Agency Customized Insurance: Covers the entire “treatment + tourism” process with premiums as low as ¥5,000 (includes trip cancellation, lost luggage).
Data: In 2024, international tourists' out-of-pocket expenses for medical tourism in China accounted for only 20%-30% (compared to over 50% in Europe and the US).
III、Technological Efficiency: Cost Reduction Through Mass Production and Local Innovation
(1) Local Innovation: Technological Breakthroughs from “Generic” to “Original”
China has transitioned from “following” to “leading” in certain medical technology fields, with domestically developed products achieving significantly lower production costs than their Western counterparts. Examples include:
• CAR-T Cell Therapy: Shanghai Ruijin Hospital's CAR-T treatment for lymphoma achieved an 82% complete remission rate (comparable to U.S. studies), yet costs only 60% of U.S. prices (¥800,000 vs. $1.5 million);
• Domestic Heart Stents: Stents from companies like MicroPort and Lepu Medical match imported products in performance but cost half as much (5,000 RMB vs. 10,000 RMB);
• Modernized Traditional Chinese Medicine: Lianhua Qingwen Capsules received EU EMA certification for influenza treatment, with production costs at one-third of comparable Western herbal medicines.
(2) Mass Production: Reducing Unit Costs
China hosts the world's largest medical manufacturing clusters (e.g., Suzhou Biomedical Industrial Park, Shanghai Zhangjiang Pharmaceutical Valley), where mass production significantly lowers unit costs for drugs and medical supplies. Examples include:
• COVID-19 Vaccines: Through mass production, China reduced per-dose vaccine costs to ¥20 (vs. over ¥100 in Europe and the US);
• Genetic Testing Kits: BGI's cancer early-screening kit lowered per-test costs to ¥500 (vs. over ¥2,000 in Europe and the US).
IV、Market Competition: Diverse Players Drive Price Transparency
(1) Competition Between Public and Private Hospitals
China's healthcare market has formed a “public-dominated + private-supplemented” structure. Public hospitals attract basic patients through policy advantages and affordable pricing, while private hospitals compete through differentiated high-end services, collectively driving price transparency. For example:
• Beijing Union Medical College Hospital International Department (public) charges RMB 20,000–50,000 for health checkups, while Beijing United Family Hospital (private) charges RMB 80,000–150,000 for comparable services, allowing patients to choose based on budget;
• In Hainan's Boao Lecheng, public tertiary hospitals (e.g., Boao Super Hospital) compete directly with international private hospitals (e.g., Raffles Medical). Drug and medical device prices are government-guided, preventing monopolistic pricing.
(2) The “Catfish Effect” of International Medical Institutions
As international medical groups (e.g., Mayo Clinic from the U.S., Hamburg Medical Center from Germany) enter the Chinese market, their pricing strategies compel local institutions to optimize costs. For example:
• Mayo Clinic Shanghai charges 8,000 RMB per outpatient visit (including translation), while Shanghai Ruijin Hospital International Department charges 3,000 RMB per visit (including translation), driving industry-wide price reductions;
• Although international medical groups charge premium rates for “high-end services” (e.g., private physicians, customized rehabilitation), domestic institutions are capturing market share through cost-effective “basic + specialty” services (e.g., traditional Chinese medicine therapy + precision diagnostics).
Summary: The “Chinese Code” Behind Cost Advantages
China's medical tourism costs are over 50% lower than those in Europe and the United States, fundamentally driven by policy-guided cost restructuring: centralized procurement drives down drug and medical device prices; special licensing policies introduce affordable innovative drugs; public-sector-led universal pricing ensures accessibility; and domestic technological innovation reduces costs. Combined with insurance coverage and market competition, this creates a globally competitive model characterized by “reliable technology, high-quality service, and affordable pricing.”
For international patients, choosing China's medical tourism not only delivers internationally recognized treatment outcomes but also offers the unique service of “integrating Chinese and Western medicine” at “half the price of Europe and America.” This represents the core appeal of China's medical tourism and serves as a significant driving force in reshaping the global health tourism landscape.