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The entry of hospitals ex- clusively funded by foreign investors has shifted from“rumors” to reality and raised a great discussion in the society.
In early September, the National Health and Family Planning Committee and the Ministry of Commerce published the Notice about the Start of Pilot Project of Setting up Wholly Foreign-owned Hospitals, in which the government stated its decision to start the pilot project of setting up wholly foreign-owned hospitals in Beijing, Shanghai, Guangdong and other four provinces. This possibly ends the situation that Chinese citizens have no alternative approaches when they are sick. In addition, this might break the situation of China’s healthcare industry which has been unchanged for years.
Some people are expecting the wholly foreign-owned hospitals to generate the “catfish effect” in the entire healthcare industry which could finally lead to the solution to the current situa- tion of “hard and costly access to doctors” in China. In comparison, some people are still having doubts about the entry of foreign-funded hospitals into China. For example, what if they don’t provide services for ordinary people or are not covered in the medical insurance? In addition, is their entry as simple as the policy states?
The Tip of “Catfish Effect”
“The government is now ready to set up wholly foreign-owned hospitals in seven provinces/municipalities with the hope of promoting the development of the multiplied hospital operation and management and improving the distribution of medical resources with the advanced ideas, management and service patterns of foreign hospitals, as well their state-of-art medical technologies and devices,” says Li Zhixue, an analyst with P-Along Industrial Consultant.
The private-funded hospitals just started their development in China. They are still haunted by the low medical and management levels and have problems in creditability. The public hospitals, which have no concerns about the competition, are facing the heavy burden of reform. The imbalance of medical resources and the low efficiency of medical care lead to the “hard and costly access to doctors” for citizens.
Then, the newcoming foreign hospitals can become the stone thrown into the pond to generate ripples big enough to change the entire healthcare industry in China?
Prof. Yuan Jian with ASKCI Industrial Institute says that the wholly foreign-owned hospitals would definitely have the “catfish effect” in China’s healthcare market. According to him, the change of imbalance of medical resources needs to be done from two aspects： on one hand, it is necessary to further deepen the medical system reform and strengthen the support from the public funds； on the other hand, the market competition is needed to propel the reform. The establishment of wholly foreign-owned hospitals in China will exert its function and influence in capital, technologies, service and management to some extent. Those foreign hospitals with high scores in these aspects will become the “catfish that stirs up the pond of healthcare market”.
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