Medical sector a lure for foreign players

The Chinese government is considering allowing overseas investors to fully own medical facilities in multiple locations in China, which will certainly increase the interest of overseas investors and facilitate foreign capital's entry into the country's healthcare sector. But there are problems that could have a restrictive impact on overseas investment in China's healthcare sector.

The multiple policies, procedures, rules and regulations that each overseas investor will eventually encounter while applying for necessary licenses and permits to operate a healthcare facility in China are part of such problems. The myriad, unfamiliar requirements could be overwhelming and devastating to uninitiated foreign executives. Besides, fulfilling these requirements is a time-consuming affair and requires considerable effort and capital. For instance, in the period between applying and getting approval, which could be more than one year, an investor has to pay huge amounts of money to pay the rent for a space that at best is unused.

Indeed, the government has to verify and analyze the antecedents of investors that want to enter the country's healthcare system. It has to ensure that the investors not only have the necessary capital, but also the knowledge and experience to operate medical facilities in such a manner that will deliver efficient, high-quality healthcare services.