On July 25, 2014, the National Health and Family Planning Commission (NHFPC) and the Ministry of Commerce (MOFCOM) jointly released the Circular on Carrying Out the Pilot Program on Establishing Wholly Foreign Owned Hospitals (Guo Wei Yi Han  No.244) (the Circular), which allows foreign investors to establish wholly foreign owned hospitals in Beijing, Tianjin, Shanghai, Jiangsu, Fujian, Guangdong and Hainan by way of new establishment or merger and acquisition, starting July 25, 2014.
The Circular provides that foreign investors applying for the establishment of wholly foreign owned hospitals must have direct or indirect experience in the investment in or the management of health and medical care. Further, the applicant must fulfill one of the following requirements:
- Capability of introducing internationally advanced hospital management principles, management models and services models;
- Capability of introducing internationally leading medical technologies and equipment; and
- Capability of supplementing or improving deficiencies in local medical care services, medical techniques and medical equipment.
Under the Circular, the power to examine and approve the establishment of wholly foreign owned hospitals is delegated to the competent authorities at the provincial level. Foreign investors applying for the establishment of wholly foreign owned hospitals should file their applications with the city-level health and family planning administrative authorities where the wholly foreign owned hospitals are proposed to be established, and after the city-level health and family planning authorities provide their preliminary examination opinions, the applications are then subject to the examination and approval of the health and family planning administrative authorities at the provincial level.
- Circular on Carrying out the Pilot Program on Establishing Wholly Foreign Owned Hospitals
- Issuing Authority: the National Health and Family Planning Commission and the Ministry of Commerce
- Date of Issuance: July 25, 2014 / Effective Date: July 25, 2014