HONG KONG (Reuters) – Shanghai has launched a plan to allow wholly foreign-owned hospitals in China to be set up in key economic zones, biopharmaceutical areas and central districts where many expatriates live.
The commercial capital is the first city to announce the moves after the central government said in September it would allow wholly foreign-owned hospitals in nine locations, including Beijing.
The aim is to attract investment, improve business sentiment among foreign investors and revive the world’s second largest economy where growth has been slow.
Shanghai will allow foreign-owned hospitals in key economic zones, including the Lingang Special Area and Hongqiao Business District, the city’s government said in a statement on its website on Wednesday.
Through the initiative, the city aims to further open up China’s healthcare sector, increase the diversity of healthcare services and improve the business environment.
Prospective foreign owners must demonstrate advanced hospital management concepts, service models and standards, as well as provide superior medical technology and equipment at an international level.
However, they are not allowed to establish hospitals specializing in certain fields, including traditional Chinese medicine or infectious diseases.
Foreign-owned hospitals must have at least 50% of their medical professional and technical staff from the Chinese mainland, China’s National Health Commission said in November.
