China on Friday took a significant step towards opening its medical sector by approving the establishment of wholly foreign-owned hospitals in several major cities. The pilot work plan, introduced by the National Health Commission (NHC) along with three other government departments, designates Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the island province of Hainan as the initial locations for these investments.
The NHC emphasized that the move responds to the high domestic demand for medical services and the growing interest from foreign investors. In 2023, China saw over 38,000 hospitals, with public institutions making up less than a third of this number. Despite this, public hospitals accounted for a staggering 83.5% of patient visits nationwide, highlighting the potential impact of increased private and foreign-operated facilities.
Since 2000, China has permitted joint ventures in the medical field with foreign partners, resulting in over 60 foreign-invested joint-venture medical institutions today. This new plan aims to build on that foundation by allowing wholly foreign-owned hospitals to operate as general, specialty, and rehabilitation centers. However, the plan excludes traditional Chinese medicine hospitals and prohibits the acquisition of public hospitals by foreign entities.
The government’s initiative seeks to integrate international medical expertise, enhance service quality, and create a more favorable business environment. To ensure standards are maintained, the plan includes specific pilot requirements and management measures. Notably, these hospitals will be restricted from engaging in high-risk medical activities, such as human organ transplantation, to uphold ethical standards.
By opening up to fully foreign-owned hospitals, China aims to diversify its healthcare offerings and meet the evolving needs of its population, while also attracting global investment and expertise to its medical sector.
Reference(s):
China permits full foreign ownership of hospitals in key cities
cgtn.com
