In a move to provide better medical services to patients, China is allowing the creation of wholly foreign-owned hospitals in Beijing, Tianjin, Shanghai and four southern provinces. Foreign investors had previously been limited to a maximum 70 percent stake in any joint ventures. At a time when hospital privatization is spreading and demand for quality care is growing, CCTV’s Ai Yang takes a look at how this new policy could give the industry a shot in the arm.
Foreign capital-owned medical facilities like this one are not yet common in China. There’s no level playing field with the domestic hospitals, both in terms of international standardized services and pricing.
"Although private and foreign hospitals provide better services, I’m already retired and cannot afford the high price. I’d still go to a domestic hospital."
"It takes up to half a day at a public hospital just to see a doctor for a minor illness. I’d rather go to a private one to save time."
Hospital privatization is happening fast in China. Over the last decade the number surged from 3,200 to more than 11,000. Now that foreign players are allowed in, observers believe it’s going to be a game-changer.
"Market changing already with Chinese investors...and more Chinese nationals have the financial to purchase outside the system and demand higher..if they don’t reach the service they go overaseas. ..regulation will further force traditional hospitals to improve service delivery," John Williams, managing director of International SOS China, said.
A Chinese doctor at a public hospital may see up to 2 or even 300 patients a day during the busiest season, whereas in some private clinics, the same number would be spread over a week.
It’s the hope of many foreign players that their medical services can be linked to the state system in the future. The lower the costs for individuals would give foreign hospitals access to a bigger market.
But for the foreseeable future, commercial insurance will likely be the main channel helping patients pay for private medical care. Observers say it’s going to take some time to see further collaboration between the public and private sector.