Door opens for 100% foreign ownership of Chinese hospitals on pilot basis

September 24, 2014
Legal Update

The following is the introduction of an article written by Joe Dehner, head of Frost Brown Todd’s International Services Group, on the policy changes leading to the first wholly foreign-owned hospital to be launched in China’s Shanghai Pilot Free Trade Zone.

U.S. health care businesses see China as a waiting market, ready for the introduction of world-class hospitals and care centers.  China understandably regards medical care as intensely domestic, and has limited foreign involvement to joint ventures or minority ownership.  

A door has now opened.  A cooperative framework for establishing a hospital in the Shanghai Pilot Free Trade Zone allows a German investor (Artemed Group) to create the first wholly foreign owned hospital in China since the PRC Revolution.  This is a breakthrough since the 2010 announcement that China would allow foreign companies to own and operate hospitals in China, a notice that was followed by second thoughts and tentative steps toward implementation.

Click here to read the full article and to access a comprehensive English and Chinese language summary of the developments as published in the September 12, 2014 issue of the Jun He Bulletin.