The Study Of China’s Market Access System Of Foreign-owned Profitable Medical Institutions

While China’s medical service market is opening up as early as1989, foreigninvestment may set up foreign-owned medical institutions within Chinese territory.However, during the past two decades, the development of foreign-owned profitablemedical institutions in China has been restricted seriously. By study the presentlymarket access system of foreign-owned profitable medical institutions, this thesisattempts to advance a possible solution to the problem.Firstly, this thesis introduces the definition, function and classification offoreign-owned profitable medical institutions. Then the thesis reviews thedevelopment course of the market access system of foreign-owned profitablemedical institutions and points out its developing trends. As the expression of themarket access system of foreign-owned profitable medical institutions, the profitablemedical institutions establishing can provide samples for researching the problems ofhe presently market access system of foreign-owned profitable medical institutions.So, the second chapter introduces the two ways to set up foreign-owned profitablemedical institutions in China: Greenfield investment and cross-border M&A, anddescribes their establishment condition, examination and approval department, andapproval process.By describing the profitable medical institutions establishing, we can be able tosummarize that the major problems in the market access system of foreign-ownedprofitable medical institutions. The major problems includes the incomplete legalsystem, the incomplete market access, and the unreasonable approval process. Thedeep reasons behind these problems are related to medical structural reform,foreign-owned profitable medical institutions’s market position, the mixture ofgoverment and medical institutions, and the subsequent supervision. The existenceof such factors constraint the development of China’s market access system of foreign-owned profitable medical institutions.Then the thesis makes recommendations for improving the market access systemof foreign-owned profitable medical institutions. First of all, the medical servicemarket in China should be divided into private health services market, public healthservices market and quasi-public health service market. Foreign-owned profitablemedical institutions should be defined as private medical service providers, and inthe private health services market, competent authorities should change theadministration mode. Secondly, according to the positioning of foreign-ownedprofitable medical institutions, competent authorities should adjust the market access,including raising investor’s qualification criterion or total investment, and relaxingthe approval limits. At the same time, competent authorities should simplify theapproval process, and improve the legal system about foreign-owned profitablemedical institutions, including the revision of the administrative regulations formedical institutions and making the administrative regulations for foreign-ownedmedical institutions.