China's First Wholly Foreign-Owned Cardiovascular Hospital
DeltaHealth Hospital Shanghai has been granted permission by the Shanghai Municipal Health Commission to operate as a wholly foreign-owned hospital, marking a significant milestone in China's healthcare landscape. This makes it the first foreign-owned hospital in China dedicated to cardiovascular diseases.
This development comes after China launched a pilot program in September 2023, allowing foreign entities to independently establish hospitals in select cities, including Beijing, Shanghai, Guangzhou, Shenzhen, and five other regions. DeltaHealth Hospital Shanghai, initially a joint venture established in 2016, is located in Qingpu district and specializes in cardiology, cardiovascular medicine, surgery, medical imaging, interventional therapy, thoracic surgery, and oncology. It has also been designated as a high-level social medical institution.
In May 2023, Swire Pacific, a Hong Kong-based conglomerate, acquired full ownership of DeltaHealth Hospital Shanghai, marking the group's first majority stake in a healthcare company. Although Hong Kong operates under China's "one country, two systems" policy, investments from the region are considered foreign in nature.
This move signifies China's commitment to further opening its market in key sectors related to public welfare. Experts anticipate that this initiative will attract foreign investment, promote high-quality medical services, and better meet the growing demand for personalized healthcare among both local and expatriate residents.
Shanghai has announced plans to encourage wholly foreign-owned hospitals in key economic zones, biopharmaceutical industry clusters, and downtown districts with high concentrations of expatriates. Each of these areas can host up to two foreign-owned hospitals. These hospitals can hire expatriate physicians and healthcare professionals from Hong Kong, Macao, and Taiwan, with the stipulation that at least half of the hospital's management and medical staff must be from mainland China.
The establishment of wholly foreign-owned hospitals is expected to introduce advanced medical technologies, equipment, and service concepts, diversify service offerings, and contribute to the upgrading of the medical industry in China.
Parkway Shanghai, part of IHH Healthcare, one of the world's largest private healthcare networks, celebrated its 20th anniversary in China in December 2023. The company remains confident in China's market potential and plans to open a new flagship ambulatory care center in downtown Shanghai this year. This follows the launch of Parkway Shanghai Hospital in 2023, an 84,400-square-meter facility built with an investment of 1.61 billion yuan ($222 million).
IHH Healthcare's group CEO, Prem Kumar Nair, expressed optimism about new opportunities in China's healthcare sector, given the government's ongoing efforts to liberalize foreign investment in the industry.
5 Comments
Eugene Alta
Lack of transparency. Who are the investors behind these foreign-owned hospitals? What are their motives and long-term goals?
Rolihlahla
Lack of transparency. Who are the investors behind these foreign-owned hospitals? What are their motives and long-term goals?
BuggaBoom
Profit over patients? Will these foreign-owned hospitals prioritize profit over the well-being of their patients? Are there safeguards in place to ensure ethical and patient-centered care?
Martin L King
Promoting cultural exchange. These hospitals can serve as cultural bridges, fostering exchange and understanding between Chinese and foreign medical professionals and patients.
Rolihlahla
Cultural considerations. Will these hospitals be culturally sensitive and adapt their services to the needs of the local population?