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December 5, 2010

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Policies to boost health care sector

CHINA has announced new policies to encourage private funds, including overseas capital, to be channeled to the medical sector to meet the country's increasingly diversified demands on health care.

The new policies, dubbed "guidelines to encourage and lead social capital to sponsor health care institutions," were posted on the central government's website www.gov.cn.

It clearly stipulated that social capital should enjoy preferential treatment as medical resources are adjusted or increased while social funds will be encouraged to participate in government restructuring of hospitals.

Overseas investments are now welcomed to sponsor hospitals, while the procedures will be further simplified, according to the guideline.

The general office of the State Council, China's Cabinet, required local governments to amend documents and repeal any policies that impede the development of non-governmental medical institutions.

Also, the new policies encourage social funds to take part in governmental hospital reforms and convert some government-backed hospitals into non-governmental institutions to reduce the ratio of public hospitals, said an official with the medical and health care system reform office under the State Council.

China will deepen the opening-up of medical institutions and turn the overseas-invested medical sector from the "limited" category to allow more foreign investment, the official said.

China will gradually cancel limits on the caps of shares for foreign investors in jointly invested medical organizations, and solely foreign invested medical units will first be piloted and then gradually expanded, the official said.

Provincial governments will be able to approve joint-venture hospitals, but wholly foreign-owned hospitals will still be approved by the ministries of health and commerce, the official said.




 

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