Distribute medical service evenly

Renji Hospital, affiliated to Shanghai Jiaotong University's (SJTU) School of Medicine, recently took an experimental step toward introducing private capital in a controversial ownership reform.

In a move aimed at pursuing development, the old-brand III-A hospital, the highest grade in China's hospital rating, is said to have sold to private investors 50 percent of the shares in its West Branch, which is located in Shanghai's Huangpu district. At the same time, the State ownership of the hospital's East Branch remains intact.

Under the new ownership, Renji Hospital's West Branch will be run as a high-end hospital governed by a CEO reporting to a board of directors. As a for-profit hospital, the branch will no longer serve as a contracted hospital for public healthcare insurance schemes. Also, patients' medical bills are expected to be three times more than the current standard.