China sets new rules on fully foreign-owned hospitals in 9 regions

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BEIJING – China’s recent move to allow the establishment of wholly owned foreign hospitals in nine regions is primarily aimed at providing diversified medical services for both foreigners living in the nation and Chinese people, the authorities said on Nov 29.

A statement released on the official website of the National Health Commission said the nine regions will import high-level medical resources, enrich domestic medical services and see an enhanced business environment.

It also added that a string of rules and regulations will be implemented to supervise wholly owned foreign hospitals.

China announced in early September that it would permit wholly owned foreign hospitals to be set up in nine trial regions as part of efforts to widen opening-up in the healthcare sector.

The nine regions are Beijing, Tianjin, Shanghai, Nanjing in Jiangsu province, Fuzhou in Fujian province, Guangzhou and Shenzhen in Guangdong province, as well as the whole island of Hainan.

In an action plan published on Nov 30, the commission, along with the Ministry of Commerce, the National Administration of Traditional Chinese Medicine and the National Disease Control and Prevention Administration, sets out specific conditions, requirements and procedures for establishing such hospitals.

The commission said wholly owned foreign hospitals are intended to deliver diversified healthcare services for foreigners working, studying and living in China as well as Chinese people with special needs.

“The nine trial regions that we have selected have a large population, high medical service demands and quality healthcare infrastructure. Moreover, these regions have created a favorable business environment, taking up 45 per cent of the total use of foreign capital in China,” said the commission.

With a high density of foreign-owned enterprises and foreigners, as well as busy international flight routes in these regions, the trial program is expected to advance smoothly.

In addition to satisfying the demands of foreigners, the commission said such hospitals can also deliver services for some Chinese people with special demands, and their management and operation mechanism could offer lessons for domestic medical institutions.

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