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China – Amend Measures for Foreign Invested Medical Institutions.

29 April, 2012

 

 

On April 13, 2012, the Ministry of Health (“MOH”) published for public comment a draft version of the Measures for the Administration of Sino-foreign Equity and Cooperative Medical Institutions. The public may submit comments until May 16, 2012. Under the draft, investors in foreign invested medical institutions are no longer required to be able to provide internationally advanced management and service experience, medical technology or equipment. However, the minimum total investment of jointly-owned Sino-foreign medical institutions has been increased to RMB 100 million from RMB 20 million (in central and western China or remote and poor areas, the minimum total investment is RMB 50 million). The draft also simplifies the approval process for setting up a foreign invested medical institution.  Under current practice, an investor first must go through the municipal and provincial level health authorities before obtaining approval from the MOH. The draft amendment allows investors to submit their applications to, and obtain approval from, the provincial health authorities directly.  The draft also clarifies that the nature of foreign invested medical institutions may be profit oriented or non-profit oriented.  
 
The full Chinese text of the draft measures is available here.
 
 

For further information, please contact:

 

Elizabeth Cole, Partner, Orrick

ecole@orrick.com
 
Thomas Man, Partner, Orrick
tman@orrick.com
 
Brad Herrold, Orrick
bherrold@orrick.com
 
Veronica Lockyer, Orrick
vlockyer@orrick.com
 
Yan Zeng, Orrick
yzeng@orrick.com

 

 

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