Foreign-owned hospitals key to healthcare reform

%3CP%20align%3Dcenter%3E%3CIMG%20style%3D%22WIDTH%3A%20248px%3B%20HEIGHT%3A%20253px%22%20border%3D0%20src%3D%22/new_maoyi_en/cn/admin/news/NewsFile/-1/2014931577854.jpeg%22%20width%3D500%20height%3D500%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20Ministry%20of%20Commerce%20announced%20last%20week%20that%20China%20will%20allow%20foreign%20investors%20to%20wholly%20own%20hospitals%20in%20seven%20municipalities%20and%20provinces%2C%20the%20latest%20move%20to%20further%20open%20up%20the%20country%27s%20healthcare%20sector.%20The%20Global%20Times%20interviewed%20three%20experts%20to%20get%20their%20views%20on%20the%20issue.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CSTRONG%3EJohn%20Cai%2C%20director%20of%20the%20Centre%20for%20Health%20Care%20Management%20and%20Policy%20at%20China%20Europe%20International%20Business%20School%2C%3C/STRONG%3E%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EWholly%20foreign-owned%20hospitals%20will%20have%20a%20powerful%20demonstrative%20effect%20because%20they%20usually%20provide%20a%20higher%20level%20of%20technology%20and%20customer%20service.%20Public%20hospitals%20will%20therefore%20have%20to%20improve%20their%20technology%20and%20service%20to%20compete.%20%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EForeign%20hospitals%2C%20however%2C%20won%27t%20be%20able%20to%20do%20much%20to%20solve%20the%20problem%20of%20inadequate%20healthcare%20resources%20because%20foreign%20hospitals%20are%20geared%20toward%20the%20high-end%20market%2C%20such%20as%20foreigners%20working%20in%20China%20and%20their%20families%2C%20as%20well%20as%20wealthy%20Chinese.%20Regular%20people%20prefer%20public%20hospitals%20to%20unaffordable%20foreign%20hospitals.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThis%20policy%20will%20attract%20more%20foreign%20capital%20to%20hospitals%20in%20China.%20But%20it%20won%27t%20be%20much.%20Healthcare%20is%20not%20an%20industry%20that%20generates%20colossal%20profits.%20It%20requires%20a%20large%20upfront%20investment%20and%20takes%20a%20long%20time%20to%20begin%20generating%20profits.%20Moreover%2C%20high-end%20patients%20account%20for%20a%20small%20minority%20of%20the%20market.%20In%20addition%2C%20foreign%20hospitals%20are%20strictly%20regulated.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ECompared%20with%20public%20hospitals%2C%20foreign%20hospitals%20also%20have%20to%20bear%20a%20much%20heavier%20tax%20burden.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20greatest%20obstacle%20that%20foreign%20hospitals%20face%20in%20China%20is%20that%20they%20will%20remain%20shut%20out%20of%20the%20public%20healthcare%20system%20for%20a%20long%20time%20because%20they%20are%20for-profit%20hospitals.%20Regular%20people%20will%20likely%20choose%20public%20hospitals.%20Private%20insurance%20may%20solve%20this%20problem.%20The%20spread%20of%20private%20health%20insurance%20will%20greatly%20promote%20the%20further%20development%20of%20foreign%20hospitals%20in%20China.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EForeign%20hospitals%20may%20have%20good%20prospects%20in%20China%2C%20but%20only%20if%20the%20Chinese%20government%20enacts%20more%20supportive%20policies%20to%20aid%20their%20development.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CSTRONG%3EMa%20Jin%2C%20professor%20and%20executive%20dean%20of%20the%20School%20of%20Public%20Health%20at%20Shanghai%20Jiao%20Tong%20University%2C%3C/STRONG%3E%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20purpose%20of%20this%20policy%20is%20to%20enhance%20healthcare%20reform.%20The%20government%20believes%20that%20wholly%20foreign-owned%20hospitals%20can%20meet%20some%20of%20the%20healthcare%20needs%20of%20high-end%20patients.%20Moreover%2C%20the%20government%20hopes%20that%20public%20hospitals%20can%20take%20a%20page%20from%20the%20wholly%20foreign-owned%20hospitals%20and%20improve%20their%20technology%20and%20services.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EIt%20is%20true%20that%20the%20price%20of%20care%20at%20Sino-foreign%20joint-venture%20hospitals%20is%20much%20higher%20than%20at%20public%20hospitals.%20But%20if%20more%20and%20more%20foreign%20hospitals%20enter%20the%20Chinese%20market%2C%20the%20competition%20might%20help%20bring%20down%20prices.%20Patients%20will%20benefit%20from%20this.%20In%20addition%2C%20some%20non-profit%20foreign%20hospitals%20may%20also%20enter%20the%20Chinese%20market.%20These%20hospitals%20can%20provide%20more%20options%20for%20regular%20patients.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EA%20shortage%20of%20physicians%20is%20one%20problem%20that%20foreign%20hospitals%20will%20face%20in%20China.%20First%2C%20foreign%20physicians%20can%20only%20register%20to%20work%20in%20China%20for%20one%20year%20at%20a%20time.%20Second%2C%20the%20current%20public%20hospital%20system%20has%20impeded%20the%20mobility%20of%20domestic%20doctors.%20The%20gove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