On January 19, Premier Li Keqiang presided over the executive meeting of the State Council to promote and deepen the medical and health system reform.

 

At the meeting, the National Medical and Health Service System Planning Outline (2015-2020) (hereinafter referred to as the Outline) was adopted. It is especially pointed out at the meeting that we must adhere to combination of the government leadership and market mechanism to deepen reform.

 

What’s more, the meeting inherited the supporting attitude to the medical system reform since 2009, and especially mentioned two forms of cooperation between the private investors and the public hospitals in the medical services: jointly establishing new non-profit medical institutes, and allowing the private investors to take part in the restructuring of public hospitals and supporting development of professional hospital management groups.

 

The trend has become increasingly obvious for public hospitals to work with private investors in offering medical services.

 

Attempts have been made to establishing medical service institutions of mixed ownership in various cities, e.g. Guangzhou Zhongshan Hospital, Hunan Xiangya Hospital, Xuzhou No.3 People’s Hospital and Hainan Tumor Hospital, etc. The cooperation realizes mutual complementation of the high quality medical resources and market-based operation and management. The other cooperation pattern which allows private investors to participate in public hospital restructuring also reflects this concept.

 

In addition, “loosening restrictions on China-foreign investment and contractual joint venture” is a highlight of the Outline. For a long time, the policy restrictions have constrained the development of foreign investment in the medical service sector. Chen Pei, president of the Oasis International Hospital, told China.com.cn that many foreign investors hoped to run hospitals in China, but constrained by the access policies. It is predictable that the policy of loosening access conditions will promote development of foreign investment in the medical sector and further improve the domestic medical environment.

 

Source: 21st Century Business Herald, January 21, 2015