Foreign investors can own private hospitals
China will allow foreign investors to wholly own private hospitals in a pilot program in seven cities and provinces, as Beijing looks to take the pressure off its state-run system.
In making the announcement, the Ministry of Commerce did not include any requirements for a minimum level of investment.
China’s healthcare spending is set to reach $1 trillion by 2020, according to global management consulting firm McKinsey & Co.
Beijing has been slowly opening the door to overseas money, previously allowing overseas investors to own 70 percent in hospital joint ventures. Full ownership had been allowed in Hong Kong, Macao and Taiwan.
There were 11,300 private hospitals in the Chinese mainland last year, compared with just 3,200 in 2005, according to a Deutsche Bank report in June.