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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Editor's choice A selection of our best photos from the past 24 hours. 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NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. China's healthcare plans bump against rural skills gap Tweet This Share on LinkedIn Share on Facebook By Jane Lanhee Lee and Lucy Hornby DONGYANG, China (Reuters) - Doctor Liu Youhong made do for decades with two years of rudimentary medical training, enough to meet villagers' basic needs in his untidy rural corner of the eastern province of... Related News Humana sees drop in profit for 2011 Thu, Nov 18 2010 UPDATE 5-Humana sees drop in profit for 2011; shares fall Thu, Nov 18 2010 Healthcare sector seeks remedies as market shifts Sun, Nov 7 2010 Analysis & Opinion Health costs fuel rise in bankruptcy among elderly Related Topics World » Stocks By Jane Lanhee Lee and Lucy Hornby DONGYANG, China | Tue Nov 30, 2010 11:21pm EST DONGYANG, China (Reuters) - Doctor Liu Youhong made do for decades with two years of rudimentary medical training, enough to meet villagers' basic needs in his untidy rural corner of the eastern province of Jiangsu. But now, the dearth of skilled medical doctors in areas such as Dongyang is proving a major stumbling block to ambitious plans to offer basic health care to hundreds of millions in rural China. This skills gap has already forced China to slow purchases of medical equipment for the newly built clinics that are a pillar of its $125 billion healthcare reforms. "The single biggest issue today is still the skill level of practicing officials in rural areas," said Gao Zhan, whose company, Haoyisheng, trains rural doctors. "Purchasing equipment is quick and easy. Education and training is not a simple issue that can be directly solved by money," added Gao, whose company name means "good doctor." China is now using its new-found prosperity to try and extend health insurance and basic health care to all of its people, to replace the dismantled "iron rice bowl" which once promised cradle-to-grave security for industrial workers. The healthcare reforms are also key for boosting domestic consumption, which would in turn feed into the government's goal of reducing the economy's dependence on export earnings, as many Chinese currently set aside a large chunk of their savings for private healthcare costs. The reform involves a massive build-out of clinics in the countryside, suburbs and urban neighborhoods, designed to treat the simplest ailments locally and keep patients from flooding the specialized city hospitals. Foreign medical equipment makers such as GE and Philips Electronics have seized the opportunity to outfit China's 1,000 top tier hospitals, while Chinese manufacturers like Mindray Medical International see a boon in tenders to supply diagnostics, lights or ultrasound machines to 2,000 new or refurbished county hospitals. Still, new buildings and shiny equipment aren't enough. Despite huge need and willingness to spend, medical skills and standards are still so thin in China that Mindray must look to export markets for 60 percent of its revenues. "The current problem is that the central government has discovered that a lot of local hospitals have equipment, but not the people to operate them," said Xu Hang, Mindray's founder and chief executive, who believes the first wave of medical reform spending in China has already crested. "They'll need to take a pause, to make sure the equipment is being used." THE HUMAN FACTOR Rising wealth in the brown brick farmhouses of Dongyang village has brought chronic diseases that Liu can't treat and funding for new equipment that Liu can't operate. 1 2 Next World We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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