The National Health Commission (NHC) has released the “Pilot Work Plan for Expanding the Wholly Foreign-Owned Hospital Sector,” supported by the Ministry of Commerce (MOC), National Administration of Traditional Chinese Medicine, and National Bureau of Disease Control and Prevention. This policy aims to set specific requirements for the operation of wholly foreign-owned hospitals in China.
Expansion of Wholly Foreign-Owned Hospitals in Select Cities
In September, the MOC, NHC, and National Medical Products Administration (NMPA) jointly issued a document allowing the establishment of wholly foreign-owned hospitals in cities including Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the entire island of Hainan, excluding Traditional Chinese Medicine hospitals and prohibiting the merger and acquisition of public hospitals.
Requirements for Operating Wholly Foreign-Owned Hospitals
The latest document outlines that the investment subject of wholly foreign-owned hospitals should be a legal entity capable of independently assuming civil liability, with experience in medical and health investment and management. They must provide internationally advanced hospital management concepts, models, and services, as well as leading medical technology and equipment. These hospitals should complement or improve local medical service capabilities, technology, and facilities, expanding the diversified service supply pattern.
Operating Conditions for Wholly Foreign-Owned Hospitals
Wholly foreign-owned hospitals must be established and operated in accordance with relevant laws and regulations. They can be profit-making or non-profit, and are classified as comprehensive, specialized, or rehabilitation hospitals. They are not allowed to establish psychiatric, infectious disease, hematology, Traditional Chinese Medicine, integrated Chinese and Western medicine, or ethnic minority medicine hospitals. High medical and ethical risk treatments, such as human organ transplantation and human assisted reproductive technology, are not permitted. Foreign doctors and healthcare professionals are allowed to practice for a short period, with Chinese (mainland) personnel constituting at least 50% of the management and healthcare professionals. Hospital information management systems should be connected to local medical service supervision platforms, and electronic medical records and equipment information storage servers should be located within China. Hospitals meeting regulations can apply to be included in the designated medical insurance.
License Validity and Integration with Medical Insurance
The medical institution practice license of a wholly foreign-owned hospital is valid for 5 years and can be extended according to regulations. Health departments should include these hospitals in the scope of medical quality and safety management and encourage participation in hospital evaluation and assessment.
Designation for Basic Medical Insurance System
In the “Q&A” session, the NHC clarified that wholly foreign-owned hospitals can apply to become designated institutions for inclusion in the basic medical insurance system if they implement unified medical and pharmaceutical service prices, follow regulations on unified medical insurance coverage, and accept supervision and management by healthcare security administration bureaus. The regulations on importing a small amount of drugs and equipment due to urgent clinical needs also apply to wholly foreign-owned hospitals.-Fineline Info & Tech
