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Hong Kong Medical Service Providers Coming to Mainland China

by Fred Fortin

Beijing, China — The China press is reporting that agreement has been reached giving the “green light” for wholly owned medical service providers from Hong Kong to set up clinics on the Chinese mainland. China’s government has agreed not to interfere when it comes to pricing or locations. The policy has been that overseas investors must operate within joint ventures with Chinese mainland companies owning no less than 30 percent.

This move should certainly stimulate the inflow of private medical care to mainland China and increase competition within China’s health care market as well.The infusion of Hong Kong medical services is also being view as a way to improve the quality of health care on the mainland.

This agreement comes at a time when commercial health insurers are considering entering China and are looking to build local provider networks. Today’s government-owned hospitals are the dominant health care delivery mechanism in China with physicians working primarily as their employees. Any expansion of private physicians and medical services in China will, I believe, be welcomed news to insurers as they seek to build their capacity to manage medical care through their contracts with China’s medical service providers.

2 Comments »

  In The News: June 19 | wrote @ June 19th, 2007 at 5:07 am

[…] Hong Kong Medical Service Providers Coming to Mainland China The China press is reporting that agreement has been reached giving the “green light” for wholly owned medical service providers from Hong Kong to set up clinics on the Chinese mainland. Read More […]

[…] health care delivery system suffers from a chronic shortage of well trained physicians. In a previous post I pointed out agreement had been reached giving the “green light” for wholly owned medical […]

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