Tracking Private Investments in China’s Hospital Sector
By Benjamin Shobert. Forbes coverage featuring Liping Bai’s research on private investment in China’s hospital sector.
Publications & reporting
中国医疗体制改革
2009–2018 Reflections in 2026
From 2009 to 2018, China’s healthcare reform was the setting of my working life. I had the privilege of watching a formative period unfold, from the launch of a new round of reform in 2009 through years of policy changes, investment, and attempts to organise the delivery of care.[1] I built a career around understanding those changes before returning to school in 2018 to retool myself and develop a new set of skills.
I doubt that this particular career would have existed in the same form without the extraordinary economic expansion around it. China’s years of double-digit growth created both new possibilities and new problems.[2] People wanted better services, organisations were exploring unfamiliar territory, and there were few established answers to many of the questions they faced. There was room to build a career by asking useful questions, gathering information, and helping people make sense of a changing system.
Looking back, I feel lucky to have been given the opportunity to witness that decade of change and learn from it. Those years taught me a great deal about information, institutions, and the people whose decisions make reform possible.
Many of those lessons have since proved useful in research as well: asking better questions, paying attention to what is left unsaid, and understanding how incentives shape decisions. I see research as another field in need of reform, especially as AI prompts us to rethink how knowledge is produced and evaluated. These are four lessons from that decade that continue to shape how I think and work.
Following the health authorities’ annual briefings became an education in reading between the lines. The announcements offered achievements, figures, and priorities. After a while, I learned that some of the most valuable information lay in what was missing.
What had happened to a commitment made the previous year? Which difficult question received little attention? What information would I need to judge an achievement, and had it actually been provided?
An omission became a question to investigate. Its significance had to be tested against other sources and against what people were experiencing in practice. The useful habit was to notice the gap, then follow it.
This changed how I read official accounts. A briefing could reveal what an institution wanted to emphasise, which questions remained open, and where further inquiry might be worthwhile. Learning to listen for what was absent became an essential part of learning to do the work.
I often saw foreign hospital groups considering a joint project in China turn first to global consulting firms such as McKinsey or BCG. In my experience, relying on that advice without a serious understanding of local practice could be a big mistake.
A familiar name can make advice feel reassuring. Yet much of the knowledge needed to understand a hospital sits with the people doing the work. Doctors, nurses, and hospital administrators encounter constraints that can be difficult to see in a market overview.
They can help answer the questions that determine whether an idea is workable. Why would a doctor join a new institution? How would patients find it and come to trust it? Which arrangements work smoothly, and which require constant negotiation?
I learned to bring those people into the inquiry early. Their knowledge could be fragmented and specific to their circumstances, so it still required comparison and follow-up. But their experience had to be allowed to change the original assumptions. Listening to the front lines was part of understanding the system itself.
One of the strongest lessons I took away was how much retirement security could matter to a doctor’s decisions. For many, a position in a public hospital represented a substantial commitment to a particular working life, with benefits extending well beyond the current salary.
The details depended on employment status, including whether a post was within the public-institution staffing establishment, or 编制. Employment and pension arrangements varied and changed during the decade.[3] What stayed with me was the weight those arrangements could carry in an individual decision.
From outside, an offer from a private hospital might look attractive. From the doctor’s perspective, it could involve weighing the security of an established position, accumulated benefits, and uncertainty about retirement many years later.
That taught me to look beyond the immediate offer. People make career decisions across the span of their lives. A proposal needs to make sense within that larger calculation if it is going to attract the people needed to carry it out.
One ambition surrounding reform was a more varied system in which public and private providers would develop alongside each other. Looking back from 2026, my impression is that their relationship has evolved differently from many of the expectations I encountered at the time.
The national figures for 2025 illustrate part of this: public hospitals still accounted for most hospital visits, even though private hospitals were more numerous.[4] The number of institutions alone tells us little about where patients actually receive care.
A revealing example is the provision of premium services within public hospitals, including special-service and international departments. These can offer patients a more personalised route to specialists while retaining the clinical expertise and institutional setting of a public hospital. Peking Union Medical College Hospital’s international department is one documented example.[5] I think of this as a private-style channel within the public system.
To me, this complicates any simple division between public and private healthcare. Ownership, payment, access to specialists, and the experience of receiving care can take different forms within the same institution.
It has made me cautious about judging a healthcare model by its label. I want to understand who can obtain care, how resources are allocated, what incentives shape decisions, and whether the arrangements can last. The distance between a policy’s intention and the system that develops around it remains one of the most interesting things that decade taught me to notice.
By Benjamin Shobert. Forbes coverage featuring Liping Bai’s research on private investment in China’s hospital sector.
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