Private healthcare players upbeat as China hospitals ease rules on foreign ownership

Significant investments are needed for these hospitals to make returns, observers say

THE Chinese government’s recent move to allow foreign healthcare players to wholly own hospitals in certain regions will offer flexibility and more avenues to players hoping to harness growth in China.

However, significant investment in areas such as funding and talent will be required before these hospitals will be able to make returns for investors, said observers. The quality of foreign operators that come to China will also be crucial for the development of the sector.

China announced in September that it would permit wholly owned foreign hospitals to be set up in nine trial regions – Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and Hainan – aimed at diversifying medical services for locals and foreigners.

Foreign players welcomed the policy, although they noted that the Chinese healthcare market is not entirely untapped by non-domestic operators.

China’s state news agency Xinhua in November noted that China has allowed joint ventures between local and foreign companies. There are more than 60 foreign-invested joint-venture medical institutions in China.

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