China Opens Doors to Wholly Foreign-Owned Hospitals in Major Cities
China has unveiled a groundbreaking plan to permit the establishment of wholly foreign-owned hospitals in several major cities, marking a significant step in opening up its vast medical sector to international investment.
On Friday, the National Health Commission (NHC), along with three other government departments, released the pilot work plan granting approval for such hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the island province of Hainan.
According to the NHC, the medical sector in China is experiencing high domestic demand and has attracted strong interest from foreign investors. The move aims to introduce high-level international medical resources, improve the supply of medical services, and optimize the business environment.
As of 2023, China boasts over 38,000 hospitals, with public hospitals accounting for less than one-third of the total. Despite this, public hospitals handle 83.5 percent of all patient visits nationwide, highlighting a significant opportunity for private and foreign investment to meet the growing healthcare needs of the population.
Since 2000, China has allowed the establishment of joint-venture medical institutions with foreign investors. Currently, there are over 60 foreign-invested joint-venture medical institutions operating across the country. The new plan marks a significant expansion of opportunities for wholly foreign-owned hospitals to enter the market.
The work plan specifies that wholly foreign-owned hospitals can operate as general, specialty, and rehabilitation hospitals. However, it explicitly excludes traditional Chinese medicine hospitals and prohibits the foreign acquisition of public hospitals. Additionally, such hospitals are barred from performing medical activities with significant medical or ethical risks, such as human organ transplantation.
This initiative reflects China’s commitment to further opening up its economy and attracting foreign investment in key sectors. By leveraging international expertise and resources, China aims to enhance its healthcare services to meet the evolving needs of its population.
Reference(s):
China permits full foreign ownership of hospitals in key cities
cgtn.com
