Medical firm welcomes healthcare reforms
in China in the future, but we would have stratified portfolios. It depends on how demands for different kinds of products change.
What is unique about the Chinese market compared with other major international markets?
There are more patients and more physicians in China compared to any other area in the world.
In 10 years, probably, the Chinese market would have outpaced the US market. To us, what makes China unique, is that Chinese government has a systematic approach to resolve the huge demand for better healthcare service through managing the pace of investment and by improving training of medical professionals.
In this way costs are controlled. The Chinese government has been leveling the playing field for market players, which makes China a long-term viable market.
Your company received a fine of 118.5 million yuan ($17.19 million) from the National Development and Reform Commission for refusing to let distributors discount prices for medical devices last year. How has this affected your business and strategies?
We have spoken to officials with the National Development and Reform Commission. By and large, there has not been much effect on our business.
We have the best intentions, and we have made adjustments accordingly. The government is keeping an eye on the whole supply chain, and is trying to streamline it. That helps improve the whole business environment and we will watch it carefully. The transparency of law enforcement is good enough, and I don’t think there is too much to complain about from the company’s perspective.
We now understand where the regulations stand and we will make sure employees understand the rules.
What’s your opinion about free trade and globalization?
Healthcare is a global need. If you can help people, no matter where they are in the world, it is a good thing.
The demand is universal and I think there should not be too much disagreement on this point. Putting a barrier on doing this sometimes makes it more difficult but may be unintentional.
We would adapt to local policies. Once the rules are in place, we are a big enough company to make the adjustment.
Age: 61 Birthplace: India Career: 2011-present: Chairman and CEO of Medtronic 2009-11: President and CEO of GE Healthcare Systems; in 2010, promoted to SVP of GE
2005-09: President and CEO of Clinical Systems of GE 1999-2005: Officer of GE 1995-99: General manager, Ultrasound, GE
Have you visited any Chinese hospitals or clinics, and spoken with local distributors and patients?
Yes, I have visited both small and large hospitals in China, and the medical center in Chengdu in Sichuan province. The feedback from the patients is usually good. I have met distributors as well. I will come back to Beijing again this year.
Education: Bachelor of Science Ph.D. in Electrical Engineering from the King’s College, University of London
What’s your hobby? How do you spend your time after work?
I go hiking a little bit while visiting countries. I love running, just for fun. Hope I can have the chance to hiking in China very soon.