China's medical tourism price competitiveness in the field of oncology treatment is remarkable, with obvious advantages compared with the United States and Japan, but it needs to be analyzed comprehensively in combination with specific treatment types, technology levels and additional costs. The following four aspects from the core treatment program cost comparison, technology and quality support, additional cost differences and the actual competitiveness of the summary:
Cost comparison of core treatment items: China is generally 30%-70% lower (or even higher)
The cost of tumor treatment mainly consists of diagnostic examination, surgery, radiotherapy, targeted/immunotherapy, emerging therapies (e.g., proton reionization), etc., and there is a significant difference between the costs of China, the U.S., and Japan in these aspects:
1. Surgery and hospitalization costs
- United States: The total cost of surgical procedures (e.g., lung cancer/breast cancer resection), including pre-operative testing, surgery, hospitalization, and post-operative care, is typically US$100,000-300,000 (approximately RMB 700,000-2.1 million). Of this, the surgeon's fee alone may be as high as $30,000-$80,000, and the average daily cost of hospitalization is over $1,000 USD.
- Japan: The total cost of surgery is about 3-8 million yen (about 150,000-400,000 RMB), the average daily cost of hospitalization is about 100,000-200,000 yen (about 5,000-10,000 RMB), and the higher labor costs result in an overall higher cost than in China.
- China: The total cost of similar surgeries in public tertiary hospitals is RMB 50,000-200,000 (e.g., lung cancer surgeries in Beijing/Shanghai tertiary hospitals are about RMB 80,000-150,000), and the average daily cost of hospitalization is about RMB 3,000-8,000. The cost is only 1/5-1/10 of that in the United States and 1/3-1/2 of that in Japan.
2. Radiotherapy and chemotherapy
- Conventional radiotherapy: the cost of a single session of ordinary radiotherapy in the United States is about 3000-5000 U.S. dollars (about 21,000-35,000 yuan), and the out-of-pocket expenses of chemotherapy drugs (such as paclitaxel) may exceed 10,000 U.S. dollars for a single cycle (due to the big difference in insurance coverage); in Japan, the cost of a single session of radiotherapy is about 30,000-50,000 Japanese Yen (about 1,500-2,500 yuan), and the out-of-pocket expenses of chemotherapy drugs are high due to the high proportion of patented drugs, and the out-of-pocket expenses of chemotherapy drugs are about 1/3-1/2 of those in Japan. Chemotherapy drugs, due to the high proportion of patented drugs, out-of-pocket expenses are still higher than in China.
- China: The cost of a single radiotherapy treatment in public tertiary hospitals is about 2,000-4,000 RMB, and the out-of-pocket cost of chemotherapy drugs is only 2,000-5,000 RMB for a single cycle due to the popularity of generic drugs (e.g., domestically produced Paclitaxel) (even lower after reimbursement by the medical insurance). The cost is only 1/5-1/10 of that of the United States and 1/3-1/2 of that of Japan. 3.
3. Emerging therapies (proton/heavy ion, CAR-T)
- Proton therapy: the cost of a single course of treatment in the United States (about 30 sessions) is as high as 300,000-500,000 U.S. dollars (about 2.1-3.5 million yuan); in Japan, because of the maturity of the technology and the lower cost of labor, a single course of treatment is about 3 million-5 million yen (about 150,000-250,000 yuan); in China (e.g., the Shanghai Proton and Heavy Ion Hospital), the cost of a single course is about 278,000 yuan (including examinations, treatment, and other costs). China (e.g. Shanghai Proton Heavy Ion Hospital) single course of treatment is about 278,000 RMB (including examination and treatment), which is only 1/7-1/12 of that of the United States and 1/2-2/3 of that of Japan.
- CAR-T cell therapy: approved CAR-T products in the United States (e.g., Yescarta) cost about $475,000 (about 3.3 million yuan) for a single session; China's self-developed CAR-T products (e.g., Fosun Kite Achilleon Saxony) pricing is about 1.2 million yuan (even lower after inclusion of some indications in the medical insurance), which is only one-third that of the United States. 4. Targeted/immunotherapy
4. Targeted/immunotherapy
- U.S. original targeted drugs (such as PD-1 inhibitor pembrolizumab) annual treatment cost of about $ 150,000 - 200,000 (about 1,050,000 - 1,400,000 yuan); Japan because of drug pricing reference to the U.S. but the health insurance negotiations are more stringent, the annual cost of about 80,000 - 120,000 yuan (it should be noted that the Japanese patient out-of-pocket ratio of about 30%); China through the health insurance negotiation, the similar PD-1 inhibitor annual out-of-pocket expenses of about 1/3 of the United States (some indications into the health insurance is lower). PD-1 inhibitors through the health insurance negotiations, the annual out-of-pocket expenses of similar PD-1 inhibitors down to 1/10-1/5 (such as pembrolizumab 2023 domestic health insurance price annual out-of-pocket about 1/6, about 100,000-150,000 yuan).
technology and quality: China has already possessed international competitiveness, supporting the rationality of price advantage
The technical level of China's tumor treatment is close to that of developed countries, and even leads in some areas (e.g., surgical volume and speed of landing emerging therapies):
- Surgical capacity: China's annual tumor surgery volume exceeds 7 million units (the first in the world), and the 5-year survival rate of tertiary hospitals in common cancers such as lung cancer and liver cancer is close to that of Europe and the United States (e.g., China's 5-year survival rate for lung cancer increased from 16.1% in 2003-2005 to 19.7% in 2012-2015, compared to 25% in the United States in the same period).
- Radiotherapy equipment: China has the second largest number of proton heavy ion centers in the world (about 20, second only to the U.S.), and its equipment (e.g., IBA, Varian) is in sync with that of the U.S. and Japan, and its treatment precision is up to international standards.
- Innovative drugs and therapies: China is the second largest clinical trial base in the world, new drugs such as PD-1/PD-L1 and CAR-T are launched only 1-2 years later than the U.S. Some domestic drugs (e.g., Hengrui's PD-1) are comparable to imported drugs in terms of efficacy but at a lower price.
Therefore, the “high cost-effectiveness” of China's tumor treatment is built on the basis of up-to-date technology, not simply low price and low quality.
Additional Costs: The cost of living in China is significantly lower than that in the US and Japan, which reduces the overall expenditure on medical tourism.
Medical tourism requires consideration of additional costs such as transportation, lodging, interpreters, and escorts:
- Transportation: Airfare from Southeast Asia/Middle East to China is about 2,000-5,000 RMB (round-trip), which is only 1/7-1/3 of the cost of going to the U.S. (about 15,000-30,000 RMB).
- Accommodation: 4-star hotels in China's first-tier cities (e.g., Shanghai and Beijing) cost about RMB 800-1500 per day, while those in second- and third-tier cities cost only RMB 300-600; hotels in New York/Los Angeles in the United States cost more than RMB 2,000 per day, while those in Tokyo/Osaka in Japan cost about RMB 1,500-2,500 per day.
- Translation and escort: Some hospitals in China provide multi-language medical translation services (average daily cost of about 500-1000 RMB), which is lower than that in Japan (professional medical interpreters are required, average daily cost of about 1500-2000 RMB).
Taken together, the additional cost of medical tourism in China is 50%-70% lower than that in the United States and 30%-50% lower than that in Japan.
Summary: China's price competitiveness in oncology medical tourism is “significantly superior”
Compared with the U.S. and Japan, China's price advantage in oncology treatment is reflected in:
1. low absolute cost: the cost of core treatment items (surgery, radiotherapy, chemotherapy, emerging therapies) is generally 1/5-1/10 of that of the United States and 1/3-1/2 of that of Japan; 2. technology and quality are up to standard: the cost of core treatment items (surgery, radiotherapy, chemotherapy, emerging therapies) is generally 1/3-1/2 of that of Japan.
2. Technology and quality up to standard: the treatment level is on par with international standards and leading in some fields, which supports the reasonableness of the price.
3. Low additional costs: living, transportation, translation and other expenses are significantly lower than those in the U.S. and Japan, and the overall total cost of medical tourism has a more prominent advantage.
Applicable groups: price-sensitive patients from developing countries (e.g. Southeast Asia, the Middle East, South Asia), patients with chronic diseases requiring long-term treatment (e.g. cancer patients requiring multiple radiotherapy treatments), as well as middle- and high-income groups pursuing “cost-effective and high-quality services” (compared with Japan's high labor costs, China's service efficiency is better).