As China becomes more integrated with the Guangdong-Hong Kong-Macao Greater Bay Area, demand for a wide range of medical services, from diagnosis to medicine, surgery, rehabilitation and chronic disease management, will also increase. Costs, including advances in medical technology and treatments, will weigh heavily on national finances.
To meet people’s expectations, the government cannot afford to skimp on spending and must strive to maximize cost-effectiveness. The central government has chosen a path that serves multiple objectives. To expand medical care, it has allowed foreign companies to set up wholly-owned hospitals in several major cities, including Shenzhen and Guangzhou. The move also advances Beijing’s goal of further opening up and maintaining steady growth after the pandemic-induced economic slowdown.
Foreign investors will also be able to operate hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou and Hainan, according to the Ministry of Commerce, the National Health Commission and the National Medical Products Administration.
The move is resonating in Hong Kong, where access to medical services in mainland China is an issue for a growing number of residents (including retirees) who have moved or are considering moving across the border, and will complement the specialist medical services provided by the University of Hong Kong Shenzhen Hospital.
This reform has been rumored for some time. It would have been implemented sooner if not for the impact of COVID-19. The overarching idea is to further open up the private sector to foreign companies, which is a positive move for the economy. The opening up of the medical sector is an important part of the service industry for investors and may attract interest in Hong Kong and overseas.
