Law 13,097 of 2015, which resulted from the conversion into law
of Provisional Measure 656 of 2014, amended Section 23 of the
National Healthcare System Law of 1990 to allow foreign investment
in the Brazilian healthcare sector.
Prior to this change, the participation of foreign investors in
the Brazilian healthcare sector was limited by the Federal
Constitution, which establishes that foreign capital or companies
are not allowed to participate in the sector, directly or
indirectly, except for specific cases provided for by the
law.
The previous wording of Section 23 of the National Healthcare
System Law allowed the participation of foreign capital or
companies only in the event of: i) technical cooperation, financing
and donations made by international organizations linked to the
United Nations Organization; and ii) non-profit health assistance
services maintained by companies to assist their employees, with no
cost to the Brazilian public healthcare system (Sistema
Único de Saúde - "SUS"). In addition,
another statute (Law 9,656 of 1998) also allowed foreign entities
to invest in companies managing private health insurance plans in
Brazil.
The law now authorizes the full participation of foreign capital
(including the holding of a controlling stake), either directly or
indirectly, in Brazilian companies that operate general or
specialized hospitals, policlinics, and general or specialized
clinics.
It also authorizes the full participation of foreign capital in
activities related to healthcare support, including laboratories of
human genetics, production and supply of drugs and health products,
and laboratories for clinical, pathology and imaging
diagnostics.
The reason underlying the change is to increase competition and,
ultimately, to improve the quality and quantity of health services
rendered to the Brazilian population.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
