Wholly Foreign Owned Hospitals to Be Allowed in Seven Provinces (Municipalities)

28/08/2014

The National Health and Family Planning Committee (“NHFPC”) and the Ministry of Commerce (“MOFCOM”) have jointly released the Circular on Carrying out the Pilot Program Establishing Wholly Foreign Owned Hospitals (the “Circular”), allowing foreign investors to establish wholly foreign owned hospitals in Beijing, Tianjin, Shanghai, Jiangsu, Fujian, Guangdong and Hainan by way of new incorporation or  M&A. Before the Circular,  wholly foreign owned hospitals are allowed in the Shanghai Pilot Free Trade Zone only.

The Circular focuses on the conditions required to be met by foreign investors to establish wholly foreign owned hospitals. According to 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 shall file their applications with the city-level health and family planning administrative authorities in the places divided into districts 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 shall be subject to the examination and approval of the health and family planning administrative authorities at the provincial level.

(Source:  www.mofcom.gov.cn)


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