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Interim Measures for Management of Joint & Cooperative Medical Institutions Published
Beginning from July 1, this year, Sino-foreign joint hospitals to be set up in China by foreign medical institutions and enterprises shall apply for, operate and pay tax in accord with the newly promulgated management measures.
The Ministries of Health and of Foreign Trade and Economic Co-operation, which are in charge of the examination and approval for joint hospitals, recently jointly published the "Interim Measures for Management of Joint & Cooperative Medical Institutions", laying down stipulations on the conditions for establishment, approval, registration, business changes, extension and termination of operation of this type of hospitals.
The Interim Measures require that Chinese and foreign parties who apply for the establishment of hospitals shall have the experience in directly or indirectly investing in and managing medical and health services. They shall also be able to provide internationally advanced methods for the management and service of hospitals and advanced international medical technology and equipment. Or, they shall be able to supplement or improve the local medical service ability, technology, capital and facilities.
According to stipulations, the amount of investment in a joint hospital shall at least reach 20 million yuan, the share to be held by the Chinese party in the hospital shall be no lower than 30 percent. The term of the joint or cooperative hospital shall not be longer than 20 years. An application for the extension of the term, if necessary, shall be filed to the Ministry of Health and the Ministry of Foreign Trade and Economic Co-operation.
The Interim Measures say that the conditions mentioned above can be appropriately relaxed if the foreign party applies to establish joint hospitals in west China or in the old liberated, minority, border and impoverished areas. The same measures are applicable to the investors from Hong Kong, Macao and Taiwan who come for the establishment of joint or cooperative medical institutions.
In the future, the joint and cooperative medical institutions set up without the approval of the Ministry of Health and the Ministry of Foreign Trade and Economic Co-operation will be regarded as illegal practice of medicine.
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