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Insurance investment to ensure elderly life
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Taikang Life Insurance Co today launched an elderly-care community in Shanghai as China encouraging private investment into the elderly healthcare sector.
The first phase of the community located in Songjiang District took an investment 4.3 billion yuan (US$641.8 million) with capacity for 280 households, Taikang said in a statement.
When fully completed, the community will be able to house 3,000 residents.
An affiliated hospital to the Shanghai site is expected to start operating late this year, complementing elderly healthcare services in the community.
It is Taikang's second elderly-care community after it launched one in Beijing last year.
The company has planned to invest 100 billion yuan by 2023 to set up eight elderly-care communities in Beijing, Shanghai, Guangzhou, Sanya, Suzhou, Chengdu, Wuhan and Hangzhou cities.鈥⊿o far, a total 20.3 billion yuan investment has been made, accounting to a third of all investment into the elderly-care businesses from the insurance sector, the company said.
The plans were released last year when the State Council said it encouraged private capital to provide elderly-care and medical services to fill the gap of healthcare services of an aging population.
The government will support private funding by offering low-price land and increasing government purchase of elderly-care services and long-term insurance, according to a document.
The State Council last week reiterated encouragement of private investment by loosing government control on the market and lowering financing costs for private companies.
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