Solely foreign-funded medical institutions will not be allowed to operate in China even though the country has joined the World Trade Organization (WTO), the Ministry of Health said Monday.
A spokesperson for the ministry said this policy is in line with international practice.
However, the spokesperson said, Sino-foreign joint-venture medical institutions will be allowed to operate.
200 joint-venture medical institutions been approved so far
In fact, the ministry said, it has approved more than 200 joint-venture medical institutions so far.
In 2001 alone, it approved 23 joint-venture medical institutions.
Concerned regulations
The regulations on joint-venture medical institutions were publicized by the Chinese authorities on July 1, 2000.
China pledged to open its market to joint-venture medical institutions during the negotiations for its WTO membership, and the pledge stops there, the spokesperson said.
Fewer than half a dozen countries have so far opened their medical service market as widely as China has done, the spokesperson added.
About the "Temporary Measures for the Management of Sino-Foreign Joint and Cooperative Medical Institutions"
The Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation on June 1, 2000 issued the document, "Temporary Measures for the Management of Sino-Foreign Joint and Cooperative Medical Institutions", stipulating the conditions for, approval and registration of this type of hospitals, business changes, extension and termination of such businesses.
The document also stipulates that both Chinese and foreign parties applying for the establishment of a jointly or cooperatively managed medical institution shall meet the following requirements: have engaged directly or indirectly in investment in and administration of medical and health services; be able to provide internationally advanced service and management; be able to provide internationally advanced medical technology and equipment, and make up the shortage of local funds, improve techniques, facilities and service capability. The total fund invested shall not be lower than 20 million yuan, and Chinese share shall not be lower than 30 percent. The cooperation period shall not exceed 20 years.
In respect to application for the establishment of such a hospital in west China and in old liberated, minority-inhabited, poverty-stricken and remote border areas, and the scope and content of its medical service are encouraged by the State, the requirements can be appropriately relaxed.
(People's Daily December 11, 2001)
