How Guangdong Province is Leading the Way for Private Hospital Ventures in China


According to New Express, the province of Guangdong has been in the process of employing several new policies to promote the growth of the private healthcare sector in China. These measures have been implemented over the past six years and are crucial to meet the future healthcare needs of an increasing elderly population and an expected baby boom which will result from the newly announced two-child policy.

Guangzhou, located in Guangdong province, is the first city to implement these measures, which include simplifying the approval process for private hospitals, strengthening the relationships between private and public hospitals and allowing healthcare workers to work concurrently at private and public hospitals.

Streamlining the Approval Process

The first step in encouraging growth of private hospital ventures in China has been to streamline the approval process. In the past, those wanting to open a private healthcare facility had to go through numerous applications for health licensing, business licensing, fire permits and environmental permits. An applicant could not move to the next application until the previous one had been approved, which made the process quite lengthy. With new regulations in place, applicants will only have to submit one application for approval.

Encouraging Public-Private Partnerships

Another step that should assist in the growth of the private healthcare sector are initiatives that encourage public and private healthcare facilities to work together and combine resources. This will include sharing surplus inventory, allowing the purchase of services from one facility to another and controlling the size of the public hospitals to ensure that private hospitals can secure a share of the market.

Allowing Employment Flexibility

Finally, and most importantly, Guangzhou will permit doctors, nurses, and pharmacists in public hospitals to pursue concurrent employment and projects with private facilities, including opening private clinics and nursing facilities. No longer will state healthcare employees be forced to resign their positions at public hospitals when they decide to work at private facilities. With the elderly estimated to make up 35% of the Chinese population by the year 2053, and the expected increase in newborns due to the recent adoption of the two-child policy, it is becoming critical to add more private hospitals to meet the needs of these demographic markets.

By implementing these measures, Guangzhou will be able to increase the amount of high quality medical resources available to its residents. For more information on how to take advantage of these new policies by embarking on private hospital ventures in China, contact Pacific Century Ventures today.


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