Starting from 1 April 2012, Hong Kong and Macau service providers may set up wholly-owned hospitals in all mainland municipalities and provincial capitals. Previously they were only allowed to set up such hospitals in Shanghai, Chongqing, Guangdong, Fujian and Hainan.
The decision to expand the territorial scope of hospitals wholly-owned by Hong Kong and Macau service providers was based on Supplement VIII to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and Supplement VIII to the Mainland and Macau CEPA. The specific measures for the establishment of these hospitals will be based on the Interim Administrative Measures on Setting up Wholly-Owned Hospitals by Hong Kong and Macau Service Providers in the Mainland.
The Ministry of Health and the Ministry of Commerce jointly promulgated the above-mentioned administrative measures in December 2010, stipulating that Hong Kong and Macau service providers will be allowed to set up wholly-owned hospitals in Shanghai, Fujian, Guangdong, Hainan and Chongqing from 1 January 2011 onwards.
According to these interim administrative measures, these hospitals may decide for themselves whether to operate as profit-making or non-profit-making hospitals but must meet the following requirements: They must be independent legal entities. Class III hospitals must have a minimum total investment of Rmb50 million while Class II hospitals must have a minimum total investment of Rmb20 million. They must measure up to the basic standards stipulated for Class II hospitals or above.
Minimum total investment may be suitably lowered for wholly-owned hospitals set up by Hong Kong and Macau service providers in old revolutionary base areas, areas inhabited by ethnic minority groups, remote and border areas, as well as poverty-stricken areas.