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Role of Traditional Chinese Medicine in Healthcare



Recent years have witnessed a shift in perspective towards Traditional Chinese Medicine (TCM). In 2018, TCM-related terms, such as “matrimony and ginger,” emerged among the top 10 keywords associated with healthcare. Statistical data reveals significant TCM expansion in China until 2015: 3,996 TCM hospitals, 452,000 practitioners and assistants, over 42,000 TCM clinics, and a staggering 910 million TCM-related medical visits (Hu, 2021). From 2009 to 2015, TCM medical services grew by over 1%, climbing from 14.3% to 15.7%. TCM's total output in 2015 reached nearly USD 110 billion, accounting for about 28.55% of China’s pharmaceutical industry revenue.

This substantial market share suggests economists foresee TCM as a great source of economic growth in the forthcoming years. The cultivation of Chinese medicinal herbs in rural areas has played a pivotal role in rural industrialization, creating job opportunities and improving livelihoods for countless rural farmers. Additionally, the export value of Chinese herbs to foreign nations surged to USD 3.72 billion in 2015. This growth propelled TCM to surpass the average net yield and profits of China’s medical industry, countering previous concerns about its slim profit margins. As a result, projections indicate the potential for the TCM industry to reach a valuation of USD 100 billion by 2025 (Xu, 2019).

Concurrently, alongside its rapid growth, there has been a heightened scientific scrutiny of TCM. An increasing number of clinical trials, aligning with Western standards of randomized studies, have intensified over the years. By 2015, there were 1,270 registered TCM interventional trials, marking a substantial increase from an average of 6 in 2005-2010 to 13 in 2010-2015. This surge highlights a growing interest in scientifically substantiating TCM practices. The majority of TCM studies actively involve both male and female participants, indicating a comprehensive approach to inclusive research. Around 35% of these studies were in the process of recruiting participants, nearly half were completed, yet only 9% had reported their results on ClinicalTrials.gov. These trials typically included a median of 90 participants, with almost 90% being randomized and having two arms, indicating a robust methodological approach (Chen, 2017). From 2004 to 2016, public TCM hospitals remained relatively consistent, while private TCM hospitals witnessed a notable increase from 294 in 2004 to 1,560 in 2016 (Shi, 2020).

There was a marginal annual increase in TCM physicians (0.280%), pharmacists (0.298%), revenue from Chinese medicines (0.331%), and TCM prescriptions (1.613%) per hospital. However, the contribution of Chinese drugs to total drug prescriptions stayed below 50%, accounting for just a third of drug revenue in TCM hospitals. This suggests that the proportions of physicians, pharmacists, revenue from Chinese drug sales, and traditional medicine prescriptions have yet to reach the 60% benchmark required for mainstream status in TCM hospitals.

Conversely, the number of high-cost medical equipment increased significantly by over 13% annually, while the proportion of inpatient surgeries displayed a declining trend of 0.830 percentage points per hospital per year. This mixed trend reflects a nuanced adoption of Western medical practices in TCM hospitals.

Thus, while TCM has made strides towards mainstream status in the healthcare system, reaching close to the 60% benchmark, it remains a complementary rather than dominant force in TCM hospitals during the period under study (Shi, 2020). This contrasts with its burgeoning economic value and global outreach, indicating a complex and evolving role for traditional medicine in modern Chinese healthcare. The rising prominence of TCM within China suggests its potential for broader international acceptance. Increased domestic credibility may also prompt more government initiatives aimed at promoting TCM among its allies.


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