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The establishment of Sino-foreign joint venture hospitals no longer needs to be approved by the state-level Ministry of Health. Instead, a provincial department has the right.
After simplifying the procedures of examining and approving the establishment of Sino-foreign joint venture hospitals, the rights of examining and approving are decentralized to the provincial health departments. China’s health industry is more open to foreigners.
The information is gained from the “Notice about Decentralizing the Rights of Examining and Approving Sino-Foreign Joint Venture Hospitals” (hereafter the “Notice” for short).
The experts believe that the decentralizing of examining and approving rights is helpful for foreign investors to get into China’s medical market. The local governments in different places can choose suitable foreign investors based on the need of public hospital reform.
The previous rules made it clear that setting up a Sino-foreign joint venture hospital started with submitting the application to the health department of the city where the hospital is located. Then it was submitted to the provincial health department. After the provincial department’s nodding on it, the state-level Ministry of Health was the last to given the approval. When gaining the approval from the Ministry of Health, the appliers should submit their applications to Ministry of Commerce in accordance with relevant laws and regulations. The Ministry of Commerce should give out the approval or rejection within 45 working days after receiving the application and issue the “Approval Letter of Foreign-funded Enterprises” to the joint venture hospitals having earned the approval.
The “Notice” highlights the changes, in which the final approval of Ministry of Health is cancelled. Now, the application for founding a Sino-foreign joint venture hospital only needs to go through the municipal health department and provincial health department. If the provincial health department gives the approval, the foundation for the joint venture hospitals is fixed. In addition, the approval is available for both profitable and non-profitable medical institutions. Therefore, the process of examination and approval is simplified and the approval is easier to get.
Zhang Tiankan, an expert having been studying the biological medicine and social relationship for long says that the decentralization of the rights of examining and approving joint venture hospitals can add oil to the reform of public hospitals by intensifying the competition. The public hospital will upgrade their mindset of serving patient, lest more of them will go to the Sino-foreign joint venture hospitals. “A part of joint venture hospitals may stick to the high-end way, which can distract some patients from the public hospital’s VIP wards.
Beijing, for example, only has a few Sino-foreign joint venture hospitals, such as United Family Hospital. These hospitals are the high-end ones while the public hospitals mainly treat the ordinary patients. However, the complement effect of the high-end joint venture hospitals can not be ignored. An insider from the Beijing Municipal Health Department says that the Medical Reform Sub-division of this Department has already received the “Notice” and will follow the rules in examining and approving the joint venture hospitals and will welcome the foreign investors’ participation in the reform of public hospitals.
But the experts also point out that opening market to foreign healthcare institutions is not enough for upgrading the profile of public hospitals. For long, the excessive medical cost, expensive drugs and cold face of medical staff are being severely criticized by the public, which cause great damages to their profiles. The public hospitals can rival the foreign-funded hospitals, which have been through intensive market competition only getting rid of these “diseases”.
After simplifying the procedures of examining and approving the establishment of Sino-foreign joint venture hospitals, the rights of examining and approving are decentralized to the provincial health departments. China’s health industry is more open to foreigners.
The information is gained from the “Notice about Decentralizing the Rights of Examining and Approving Sino-Foreign Joint Venture Hospitals” (hereafter the “Notice” for short).
The experts believe that the decentralizing of examining and approving rights is helpful for foreign investors to get into China’s medical market. The local governments in different places can choose suitable foreign investors based on the need of public hospital reform.
The previous rules made it clear that setting up a Sino-foreign joint venture hospital started with submitting the application to the health department of the city where the hospital is located. Then it was submitted to the provincial health department. After the provincial department’s nodding on it, the state-level Ministry of Health was the last to given the approval. When gaining the approval from the Ministry of Health, the appliers should submit their applications to Ministry of Commerce in accordance with relevant laws and regulations. The Ministry of Commerce should give out the approval or rejection within 45 working days after receiving the application and issue the “Approval Letter of Foreign-funded Enterprises” to the joint venture hospitals having earned the approval.
The “Notice” highlights the changes, in which the final approval of Ministry of Health is cancelled. Now, the application for founding a Sino-foreign joint venture hospital only needs to go through the municipal health department and provincial health department. If the provincial health department gives the approval, the foundation for the joint venture hospitals is fixed. In addition, the approval is available for both profitable and non-profitable medical institutions. Therefore, the process of examination and approval is simplified and the approval is easier to get.
Zhang Tiankan, an expert having been studying the biological medicine and social relationship for long says that the decentralization of the rights of examining and approving joint venture hospitals can add oil to the reform of public hospitals by intensifying the competition. The public hospital will upgrade their mindset of serving patient, lest more of them will go to the Sino-foreign joint venture hospitals. “A part of joint venture hospitals may stick to the high-end way, which can distract some patients from the public hospital’s VIP wards.
Beijing, for example, only has a few Sino-foreign joint venture hospitals, such as United Family Hospital. These hospitals are the high-end ones while the public hospitals mainly treat the ordinary patients. However, the complement effect of the high-end joint venture hospitals can not be ignored. An insider from the Beijing Municipal Health Department says that the Medical Reform Sub-division of this Department has already received the “Notice” and will follow the rules in examining and approving the joint venture hospitals and will welcome the foreign investors’ participation in the reform of public hospitals.
But the experts also point out that opening market to foreign healthcare institutions is not enough for upgrading the profile of public hospitals. For long, the excessive medical cost, expensive drugs and cold face of medical staff are being severely criticized by the public, which cause great damages to their profiles. The public hospitals can rival the foreign-funded hospitals, which have been through intensive market competition only getting rid of these “diseases”.