On September 28, 2013, China's State Council published a
plan titled Opinions on Promoting the Development of the
Healthcare Services Industry, which outlines policy
initiatives and development goals for China's healthcare
services industry to achieve by 2020 (the
Highlights of the Plan include:
Relaxing restrictions on private investment in the
healthcare sector. Specifically, the government encourages
the formation of Sino-foreign joint venture healthcare institutions
and will gradually allow wholly foreign-owned healthcare
Optimizing healthcare resources available for senior
care services, including healthcare institutions, senior
hospitals, nursing homes, rehabilitation centers and
community-based day care centers.
Encouraging diversified commercial insurance
products which will supplement the Basic Medical Insurance
scheme. Qualified commercial insurers will be allowed to act as
health management organizations for the government.
Promoting traditional Chinese medical services and
medicines, especially in grass roots healthcare
Forming a supportive infrastructure for the healthcare
services industry, ranging from disease prevention-related
services, pre/post-natal care services, and medical tourism, to
research and development of innovative drugs and medtech products
and healthcare management services outsourcing.
The Plan explicitly acknowledges that the healthcare sector is
open for private investment. However, current laws and regulations
create barriers to such investment. Approval procedures are
expected be streamlined and simplified, especially for
rehabilitation centers, senior care facilities, childcare centers
and nursing facilities. Private healthcare institutions are
expected to benefit from the same treatment and privileges as
public healthcare institutions, such as pre-requisites for market
entry, land use rights, and subsidization of utility charges. The
Plan also aims to build a more supportive financing environment for
players in the healthcare services industry through means such as
public offerings, issuance of corporate bonds, foreign direct
investment, and loans by foreign governments, merchant banks or
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The requirement to provide home care packages on a consumer directed care basis (CDC) commenced on 1 July 2015.
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