China Opening Doors to Foreign Healthcare Providers–Focus on Tourism and Private Healthcare

China wants more hospitals and more of the medical tourism business and it appears they are working on relaxing some old laws a policies to entice more to invest. I just posted a story this week where a business man was detained from leaving until he paid up on a legal judgment he was not aware of, so laws are different and he ended up in a Chinese hospital when he ran out of insulin.

China bars O.C. Diabetic Businessman From Returning Home Over Business Deal/Legal Case-Runs Out of Insulin End Up in Hospital

The insurance part of this is still up in the air with US companies somewhat waiting to see what will happen, although many have established offices over there 2-3 years ago. BD

The government of China is to encourage the development of the private healthcare sector in the country. This paves the way for foreign firms to gain greater access to the Chinese private healthcare market. The State Council – China’s cabinet office –is backing investment from the private sector. The new policy will provide overseas healthcare companies with more flexibility in establishing a new business within the private health sector.
The move is designed to encourage investment from overseas business to meet the increasing demand for private healthcare services in the country stemming from its rapidly expanded economy. Economic expansion has brought increased affluence among the population of China, which in turn has lead to a growth in demand for private healthcare.
Current Chinese regulations only allow foreign firms to enter the private healthcare sector in China through a joint venture with a Chinese partner, together with a cap on the level of capital that may be held in a Chinese operation. There will be a gradual easing on the level of investment permitted by a foreign firm in the private healthcare sector. The new policy also allows the conversion of some government run hospitals into private medical facilities

Privately invested medical institutions will be eligible for the same land use policies as state-owned medical institutions and will enjoy the same prices as state-owned medical institutions with respect to utilities (including electricity, water, gas and heat). Positive support will also be provided to privately invested medical institutions with respect to construction, equipment purchase and personnel training.

China opens the door for foreign healthcare providers