Patients will have more choices for medical care.

On November 29, the National Health Commission(NHC), China's Ministry of Commerce, National Administration of Traditional Chinese Medicine(NATCM), and National Disease Control and Prevention Administration(NDCPA) jointly announced the Pilot Program for Expanding the Opening Up of Foreign-Owned Hospitals.

Previously, relevant departments proposed allowing foreign-owned hospitals (excluding traditional Chinese medicine hospitals and mergers with public hospitals) to be established in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the entire Hainan Island.

The newly released plan clarifies that foreign-owned hospitals can be set up in the pilot zones, with further regulations on the specific conditions, requirements, and procedures.

The release of this plan sends a clear message: foreign high-level hospitals are welcomed to "come in".

The Resolution of the Central Committee of the Communist Party of China (CPC) on Further Deepening Reform Comprehensively to Advance Chinese Modernization, deliberated and approved at the third plenary session of the 20th CPC Central Committee, proposed "expanding opening up" and "promote wider opening with regard to telecommunications, the internet, education, culture, medical services, and other sectors in a well-conceived way".

The plan explicitly aims to introduce international advanced medical resources, enrich domestic medical services, and enhance the business environment. Foreign-owned hospitals will include general hospitals, specialty hospitals, and rehabilitation hospitals, all classified as level-three hospitals, the highest classification of hospitals in China.

Since 2000, China has allowed the establishment of foreign joint-venture medical institutions. After over 20 years of development, there are currently more than 60 foreign joint-venture medical institutions. Looking ahead, more foreign high-level hospitals will "come in," which will not only reduce the time and cost for patients seeking overseas medical treatment but also hold the potential to provide valuable insights for improving the quality of China's public hospitals.

A relevant official from the Department of Medical Administration of the NHC stated that allowing the pilot of foreign-owned hospitals is an important practice in opening up China's medical field, fostering synergies with domestic institutions and meeting the diverse and multi-level health service needs of the public.

What types of foreign-owned hospitals can be established?

Medical activities directly affect the life and health rights of individuals and are closely related to the security of human genetic resources. In recent years, China has enacted a series of regulations to govern the collection, preservation, and use of human genetic resources.

In order to prevent domestic genetic resources from being transferred abroad, the plan requires enhanced risk prevention measures and improved oversight during and after the process.

The plan imposes strict restrictions on foreign-owned hospitals regarding medical activities involving human genetic resources: blood disease hospitals cannot be established, departments related to hematology cannot be registered, and high-ethics-risk medical practices, such as organ transplantation, assisted reproductive technology, prenatal screening, and prenatal diagnosis, are prohibited…

The plan also specifies that foreign-owned hospitals are prohibited from establishing psychiatric hospitals, infectious disease hospitals, traditional Chinese medicine (TCM) hospitals, hospitals of integrated Chinese and western medicine, and minority ethnic medicine hospitals.

“Adhering to both development and regulation.” Experts from the China National Health Development Research Center of the NHC indicated that according to the plan, pilot zones will ensure that foreign-owned hospitals carry out medical activities in accordance with China's laws and regulations, clinical guidelines, medical ethics standards, clinical technical operation norms, and industry standards.

What regulations apply to the operation of foreign-owned hospitals?

The plan clearly states: foreign-owned hospitals are allowed to hire foreign doctors, doctors from Hong Kong, Macau, and Taiwan, as well as other health professionals from Hong Kong and Macau for short-term practice as prescribed. However, Chinese (Mainland) personnel must account for no less than 50% of the total staff in both hospital management and health professionals.

At the same time, the hospital's information management system must be connected to the local healthcare service supervision platform, and servers storing electronic medical records, medical equipment information, and other data must be located within China's borders.

Will foreign-owned hospitals impact the practice of Chinese medical personnel and the development of public hospitals?

Public hospitals are the mainstay of China's healthcare system. In 2023, public hospital visits accounted for 83.5% of the total number of hospital visits nationwide.

A relevant official from the Medical Administration Department of the NHC stated that previous foreign joint-venture medical institutions had little impact on the workforce of local public hospitals, and the core talent pool of China's public hospitals has remained stable and continues to develop. The pilot program to establish foreign-owned hospitals in certain regions is limited in scope and will develop gradually, without affecting the national public hospital system or the basic healthcare services for the public.

In recent years, the high-quality development of China's public hospitals has been steadily advancing, with significant achievements in disciplines, service capacity, technological level, medical management, and personnel development, providing ample opportunities for medical professionals and enhancing job attraction.

The public has consistently anticipated more convenient and higher-quality healthcare services. Expanding service offerings is crucial for supporting the Healthy China initiative.

By effectively utilizing foreign-owned hospitals with diversified support and standardized management, China's healthcare system will better meet the diverse medical needs of the people.

Translated by Fujian Investment Promotion Center