Healthcare-focused private equity investors in China are facing competition and forging partnerships as Chinese technology companies seek to leverage their dominance on all things digital in the provision of care. But Bain & Company said private-equity investors looking for opportunities in the emerging market's healthcare sector aren't squeezed out.

"The Internet healthcare sector is still small," said Vikram Kapur, a Bain partner based in Hong Kong. "The bulk of investments in healthcare in China are still in biopharma and service providers like hospitals, and that's where a lot of foreign investors bring in not just capital, but also access to expertise and relationship[s]. That helps to take some of the local services to the next level."