On 29 November 2024, China’s National Health Commission, alongside three other government divisions, promulgated a pilot work plan to permit the establishment of wholly foreign-owned hospitals in various key cities, as part of its effort to liberalise the country’s healthcare sector.
The chosen locations are Beijing, Fuzhou, Guangzhou, Nanjing, Shanghai, Shenzhen, Suzhou, Tianjin as well as Hainan Island. Not only do these nine locations have sizeable populations and differentiated healthcare needs, but they also boast conducive business conditions and a robust medical infrastructure.
The document sets out the eligibility criteria for the pilot programme, management protocols, and other relevant requirements. Aside from being legally recognised entities with prior experience in the investment and administration of medical services, whether directly or indirectly, investors seeking to establish a wholly foreign-owned hospital must:
- Develop innovative service structures, management models, and sophisticated conceptual models for hospital administration at an international level;
- Provide cutting-edge medical technologies and equipment; and
- Strengthen the provision of local medical services by addressing gaps in capacity, technology, or facilities.
It should be noted, however, that the plan expressly excludes hospitals providing healthcare based on traditional Chinese medicine, alternative ethnic medicine, or mixed Chinese and western medicine practices. Exclusion extends to hospitals providing treatment for psychiatric illnesses, infection diseases, and haematological malignancies. In addition, the acquisition of public hospitals by foreign investors falls outside scope.
Further, hospitals partaking in the pilot programme are prohibited from carrying out medical procedures that pose substantial ethical or medical risks, including assisted human reproduction, human organ transplantation, and experimental tumour cell therapy.
