China Opens Door to Fully Foreign-Owned Hospitals in Major Cities
Beijing, China — In a significant move to further open its healthcare sector, China announced on Friday that it will allow the establishment of wholly foreign-owned hospitals in several major cities.
The plan, released by the National Health Commission (NHC) along with three other government departments, grants approval for foreign investors to set up hospitals in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Nanjing, Suzhou, Fuzhou, and the island province of Hainan.
Why This Matters
China’s medical sector is experiencing high domestic demand and is attracting strong interest from international investors. By opening up to foreign-owned hospitals, China aims to:
- Introduce high-level international medical resources
- Improve the supply and quality of medical services
- Optimize the business environment for healthcare
What’s Included in the Plan
The new policy allows wholly foreign-owned hospitals to operate as general, specialty, and rehabilitation hospitals. However, there are certain restrictions to ensure ethical standards and safety:
- Traditional Chinese medicine hospitals are excluded from this plan
- Foreign acquisition of public hospitals is prohibited
- These hospitals are barred from performing medical activities with significant medical or ethical risks, such as human organ transplantation
A Growing Healthcare Market
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% of patient visits nationwide, highlighting the potential for growth in the private healthcare sector.
Since 2000, China has permitted joint-venture medical institutions with foreign investors. Today, there are over 60 foreign-invested joint-venture medical institutions operating across the country.
Looking Ahead
This initiative represents a pivotal step in China’s efforts to modernize its healthcare system and make high-quality medical services more accessible. By embracing foreign expertise and investment, China is positioning itself to meet the growing healthcare needs of its population.
Reference(s):
China permits full foreign ownership of hospitals in key cities
cgtn.com
