Public awareness
Until recently, mental health was a little-discussed topic in the public sphere. Many patients were discriminated against and were socially vulnerable. After multiple tragic incidents took national headlines, the country implemented its first law on mental health in 2013. It coordinates the treatment of mental illnesses and prohibits discrimination, which changed attitudes towards the topic gradually. Most Chinese citizens now acknowledge the importance of mental healthcare services and their work.With public awareness on the rise, government spending and private investments significantly increased in recent years, closing the gaps between mental healthcare services in urban and rural areas. Digitalization and the rise of social media also accelerated the initiative of active mental health maintenance.
Psychiatric hospitals
Public psychiatric institutions play a dominant role in China. However, the country’s public mental health facilities are chronically understaffed, failing to meet the needs of the patients. Moreover, resources are concentrated in the prosperous eastern regions and urban centers, leaving China’s vast rural areas with inadequate coverage. A considerable number of districts and counties across the country had long been without any psychiatric beds, while the number of mental healthcare professionals in the western regions remained low.In 2009, the Chinese government implemented new medical reform policies, which encouraged the entry of private investments in the healthcare sector, and actively promoted the development of private health institutions. Since then, an increasing number of private mental health enterprises were registered every year. The number of private psychiatric hospitals surpassed that owned by the government in 2019, with more private mental healthcare facilities built in rural areas.
The high recurrence rate of mental conditions and long treatment times have led to strong profitability of the mental healthcare industry, facilitating the entry of private enterprises into this market. The recent boom in the sector not only resulted in the rise of smaller local mental healthcare facilities, but also the expansion of listed companies such as the Wenzhou Kangning Hospital Group.
