Shanghai’s New Initiative for Foreign-Owned Hospitals

HONG KONG (Reuters) – Shanghai has initiated a plan to allow the establishment of wholly foreign-owned hospitals in key economic zones, biopharmaceutical areas, and downtown districts populated by expatriates.

This development makes Shanghai the first city to implement such measures after the central government announced in September its approval for wholly foreign-owned hospitals in nine locations, including Beijing.

The primary objective is to attract investment, enhance business sentiment among foreign investors, and rejuvenate the world’s second-largest economy, which has been experiencing sluggish growth.

The city will permit foreign-owned hospitals in significant economic zones like the Lingang Special Area and Hongqiao business district, as stated by the municipal government on Wednesday.

Through this initiative, Shanghai aims to further open up China’s healthcare sector, diversify healthcare services, and improve the business environment.

Prospective foreign owners must demonstrate advanced hospital management concepts, models, and service standards, alongside providing cutting-edge medical technologies and equipment at international levels.

However, foreign-owned hospitals will not be permitted to focus on certain areas, such as traditional Chinese medicine or infectious diseases.

According to China’s National Health Commission in November, foreign-owned hospitals are required to employ at least 50% of their health professional and technical personnel from the Chinese mainland.