China's healthcare digitalization is being driven by urban innovation, government-backed initiatives, and the dominance of local and regional EHR vendors. Black Book explores how these domestic players, along with limited contributions from global vendors, are shaping the future of this dynamic and evolving ecosystem.

NEW YORK CITY, NEW YORK / ACCESSWIRE / December 23, 2024 / The 2025 Black Book of Global Healthcare IT presents a detailed review of Electronic Health Record (EHR) adoption in China, exploring the nation's transformative shift toward digital healthcare. The research examines progress in urban centers, challenges in rural areas, and policies driving interoperability and IT integration to shape a modernized healthcare ecosystem.

"China's expansive healthcare ecosystem poses distinctive challenges, including pronounced rural-urban disparities, fragmented IT infrastructures, and stringent regulatory frameworks," said Doug Brown, President of Black Book Research. "These complexities complicate interoperability and market penetration but simultaneously catalyze innovation. Addressing these hurdles offers opportunities to deploy advanced technologies that bridge urban-rural divides, enable seamless data integration, and deliver customized solutions aligned with China's evolving healthcare demands. Both local and global stakeholders are well-positioned to drive transformative progress in this dynamic landscape."

National Trends in EHR Implementation

China's approach to EHR adoption is rooted in its commitment to modernizing healthcare delivery through technology. A cornerstone of this strategy is the Health Information Exchange (HIE) platform, which enables standardized data sharing across disparate systems, addressing historical issues of fragmentation. Unique patient identifiers have further streamlined data management and improved the accuracy of medical records.

China's commitment to modernizing healthcare through technology has driven substantial growth in the healthcare IT market, which is expected to rise from ¥80 billion ($12 billion) in 2021 to ¥140 billion ($20 billion) by 2025, reflecting a 15% CAGR. Policies promoting Diagnosis-Related Groups (DRG), Diagnosis-Intervention Packet (DIP) payment systems, and Health Information Exchanges (HIE) have accelerated EHR adoption across hospitals and regional networks. The broader digital health market, with a projected CAGR of 17.5% from 2024 to 2032, underscores the sustained investment in AI-powered analytics, telemedicine, and data integration technologies.

Key Regions and Vendors in China

Beijing and Shanghai

Beijing and Shanghai, as China's largest urban centers, are trailblazers in EHR adoption and digital health innovation. Beijing prioritizes national-level pilot projects to advance interoperability, while Shanghai leads "smart hospital" initiatives that utilize big data to enhance workflows and patient outcomes. These cities set benchmarks for the country's digital health transformation. Vendors receiving highest client praise are:

• Neusoft Corporation: Offers EHR platforms like RealOne Suite for large hospitals and CloudOne Suite for scalable, cloud-based solutions.

• Winning Health Technology Group: Specializes in Hospital Information Systems (HIS) and regional platforms that integrate telemedicine, public health data, and care coordination.

• B-Soft: Focuses on public health systems and mobile health solutions, serving over 7,000 healthcare clients nationwide.

Sichuan Province

Sichuan Province stands out for its proactive efforts to bridge urban-rural healthcare disparities through comprehensive province-wide health data exchange systems. These initiatives have significantly enhanced the sharing of patient information, enabling more efficient and equitable care delivery in underserved areas. By prioritizing interoperability and connectivity, Sichuan serves as a model for leveraging digital health technologies to improve access and outcomes in regions with diverse healthcare needs.

• DHC Software: Provides cloud-based platforms that enable seamless data integration across Chinese facilities.

Guangdong Province

Guangdong Province leverages its advanced infrastructure to seamlessly integrate EHR systems with public health surveillance platforms, enhancing its capabilities in epidemic control and early disease detection. This integration enables real-time data analysis, supports proactive healthcare interventions, and strengthens the region's ability to respond swiftly to public health challenges. Guangdong's approach highlights the critical role of digital health in bolstering public health resilience.

• iSoftStone: Develops AI-enhanced EHR systems that optimize clinical workflows and provide predictive analytics. iSoftStone leverages machine learning to create adaptive, interoperable EHR systems for hospitals and clinics receiving high performance feedback from providers.

Jiangsu Province

Jiangsu Province has emerged as a leader in healthcare innovation by implementing integrated care models that connect primary, secondary, and tertiary providers through unified EHR platforms. This seamless connectivity has significantly reduced hospital readmissions, optimized resource allocation, and enhanced the management of chronic diseases.

• Neusoft Corporation: Drives interoperability and facilitates seamless data sharing across the healthcare ecosystem.

Tibet Autonomous Region

Tibet has adopted national EHR standards through the National Health Information Platform, improving healthcare access in remote areas. Although local EHR vendors are limited, government initiatives focus on incorporating existing systems into the broader national framework.

Hong Kong

Hong Kong's Electronic Health Record Sharing System (eHRSS) connects public and private sectors, creating a cohesive healthcare ecosystem. Public hospitals use Clinical Management Systems (CMS), while private providers integrate EHR systems compatible with eHRSS.

• CUHK Medical Centre: Implements state-of-the-art EHR systems as part of its "smart hospital" initiative as local vendors attempt to develop EHR solutions tailored to Hong Kong's unique healthcare landscape.

Challenges in China's Healthcare IT Landscape

Regulatory Complexity: Strict laws like the Cybersecurity Law and Personal Information Protection Law (PIPL) demand localized infrastructure for data storage and governance, particularly in compliance-heavy regions like Beijing.

Cultural and Workflow Customization: Jiangsu's integrated care models require advanced EHR interoperability, while rural provinces like Sichuan need simplified, resource-efficient solutions.

Market Competition: Dominance by vendors like Winning Health Technology in urban hubs like Shanghai challenges global vendors to innovate and differentiate through AI and cloud technologies.

Infrastructure Disparities: Urban centers have advanced systems, but rural areas like Tibet and Sichuan lack robust IT infrastructure, requiring scalable, low-cost solutions.

Opportunities for Multinational EHR Vendors

Multinational Electronic Health Record (EHR) companies, including Oracle Health, Dedalus, Epic Systems, MEDITECH, Altera Digital Health, Philips, NTT Data, and Orion Health, currently have limited direct implementations in mainland China, Hong Kong, and Tibet. The healthcare IT market in China is dominated by domestic providers like Winning Health Technology Group and Neusoft Corporation, which have established their positions by offering solutions tailored to local regulations and clinical workflows. International vendors face challenges such as stringent data protection laws, the need for cultural and workflow customization, and intense competition from established local players. While some multinational companies engage in partnerships or pilot projects, large-scale implementations remain uncommon, highlighting the barriers that international vendors must overcome to expand their footprint in this market.

China's healthcare system offers opportunities for U.S.-based EHR vendors despite challenges. Government initiatives supporting Health Information Exchange (HIE) and interoperability standards create pathways for scalable solutions. High-end private hospitals catering to affluent populations demand premium, customizable platforms, while rural healthcare improvements and remote monitoring align with U.S. expertise in telemedicine and AI-driven decision support.

In Hong Kong, the Electronic Health Record Sharing System (eHRSS) integrates public and private healthcare, offering opportunities for U.S. vendors to target private providers seeking interoperability. "Smart hospital" initiatives focused on advanced analytics and workflow optimization also provide a viable entry point.

Tibet's geographic and healthcare challenges highlight the potential for telemedicine and mobile health solutions to bridge access gaps. Scalable technologies and partnerships with local governments can address underserved populations and foster innovation.

Expanding Private Healthcare Sector: The growing number of high-end private hospitals in China, serving affluent and international patient populations, presents a robust demand for advanced, customizable EHR solutions. These facilities require premium platforms capable of integrating sophisticated features such as patient engagement tools, AI-powered diagnostics, and seamless interoperability.

Government-Driven Digital Transformation: Policies such as the adoption of Health Information Exchange (HIE) frameworks and Diagnosis-Related Groups (DRG) payment models provide a clear regulatory pathway for multinational vendors. These initiatives incentivize healthcare organizations to upgrade IT systems, creating significant opportunities for compliant, scalable, and integrated EHR platforms.

Alignment with Technological Advancements: The increasing emphasis on AI-driven clinical decision support, telemedicine platforms, and predictive analytics aligns closely with China's broader healthcare modernization goals. These technologies are particularly valuable in addressing rural-urban disparities by enhancing care delivery in underserved regions, enabling precision medicine, and streamlining administrative workflows.

Addressing these challenges demands tailored regional strategies and a deep understanding of China's regulatory, cultural, and technological landscape. Urban centers require sophisticated, interoperable solutions, while rural areas benefit from affordable, user-friendly technologies that bridge resource gaps. By navigating these complexities, U.S. EHR vendors could eventurally make meaningful contributions to China's healthcare ecosystem, advancing digital transformation and improving patient outcomes.

"China's vast healthcare ecosystem presents complex challenges, including rural-urban disparities, fragmented IT infrastructure, and stringent regulatory frameworks," said Doug Brown, President of Black Book Research. "However, these hurdles also drive innovation, creating opportunities to deploy advanced technologies that enhance data integration, bridge care gaps, and align with China's evolving healthcare needs. Both local and global stakeholders are poised to lead this digital transformation."

About Black Book Research

Black Book Research is a globally recognized leader in healthcare market analysis, offering unbiased insights through independent surveying methodologies. With a focus on emerging markets undergoing rapid healthcare transformation, Black Book delivers actionable intelligence to policymakers, investors, and technology innovators, fostering progress in global health IT adoption.

SOURCE: Black Book Market Research LLC