Shanghai Eases Restrictions on Private Investment in Healthcare

(Yicai Global) July 26 — Shanghai municipal government plans to release new rules for the healthcare sector in a bid to ease restrictions and bolster private investment into medical institutions.

The city will encourage advancement of public and private institutions to push capital deep into specialized healthcare segments, Vice Mayor Weng Tiehui said at a press conference on July 24.

Many specialized medical institutions are experiencing high demand, he said, indicating that with additional capital they can better manage patients and become world-leading healthcare providers, or at least climb to the top of the domestic market.

The new rules also let public hospitals set up non-profit medical organizations in tandem with private investors so both parties can team up to snag top talent and develop technologies. Authorities will also streamline the approval process for China-foreign joint ventures.

There are 2,240 private healthcare institutions in Shanghai, including 188 hospitals and 763 clinics, which provide 21,000 beds — 17 percent of the total available in the city.

The policy will remove restrictive policies which prevent investors from pumping money into high-level medical institutions with 100 beds or more, including general practice and traditional Chinese medicine clinics, Weng continued. They will also support registered GPs in setting up their own clinics.

Editor: James Boynton