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Rise of recovery medical instruments,
with explosive growth in the future three years

Rehabilitation therapy is the fourth medical category, and has the important clinical status. It is not the adjuvant therapy in the public eye, as well as can not only helps to improve the level of functional recovery and the quality of life, but also reduce medical costs, in accordance with healthcare cost control trend; even if drug control cost is tougher, the number of rehabilitation items in Medicare Program is increased from 9 to 29.

Rehabilitation therapy’s market potential is tremendous: the market of rehabilitation therapy in China in 2013 was only 2 million yuan, with 15 yuan per capita (only 3% of the U.S.). With the acceleration of aging, prevalence of chronic disease and release of the disabled rehabilitation demand, the market of rehabilitation therapy in China keeps more than 30% of high-speed growth every year, and it is predicted that its market space will be more than 100 billion in the next five years, with great potential for development.

Overseas tertiary rehabilitation therapy system is sound, and the medical insurance payment is the core of market expansion: with reference to foreign development trend, the capacity of medical insurance payment is a key element to promote the fast expansion of rehabilitation therapy market, for example, in the United States, during 1985-1995, the number of rehabilitation beds was doubled, then the compound growth rate of rehabilitation expenses reached 20%. In China, rehabilitation agencies, beds and professionals are far lower than the market demand.

Policy support, demand release and supply increase promote greater development of rehabilitation department / hospital construction: 1) the policy greatly supports the development of rehabilitation therapy industry from rehabilitation equipment research and development, ability of rehabilitation services and insurance reimbursement; 2) demand release, significantly enhance the crowd health coverage, the expense, enhanced ability to pay, promote rehabilitation needs quick release; 3) supply increase: as drug revenue decreases, hospital urgently needs new sources of revenue, and rehabilitation department is characterized by less investment, strong profitability, short payback period and strong growth, etc., becoming the key area of hospital investment. Only the demand for rehabilitation equipment market brought about by the massive construction of the national secondary hospital rehabilitation department is as high as 27.1 billion yuan.

Investment strategies and targets: with the wave of hospital rehabilitation department, rehabilitation industry chain will usher the explosive growth. Rehabilitation equipment benefits first, followed by rehabilitation services.