The Chinese Government has announced a policy shift, permitting the development of wholly foreign-owned hospitals in several key cities and the island province of Hainan, as reported by Xinhua.

These cities include Beijing, Fuzhou, Guangzhou, Shanghai and Shenzhen.

The initiative, outlined by the National Health Commission (NHC) and three other departments of the government, aims to leverage international medical resources to enhance the nation's healthcare services.

On 29 November, the NHC emphasised the strong domestic demand for medical services and the keen interest from foreign investors in these services.

This move aligns with China's July resolution, which identified these sectors as priorities for increased openness to foreign participation.

The new work plan sets forth the conditions and management measures for the establishment of wholly foreign-owned hospitals, which can operate as speciality, general or rehabilitation facilities.

However, the plan imposes certain restrictions, such as barring these hospitals from engaging in medical practices that carry significant ethical or medical risks, including human organ transplantation.

As of last year, China's hospital count exceeded 38,000, with public hospitals representing less than one-third of this figure.

Despite this, the hospitals continued to represent 83.5% of patient consultations throughout the nation.

The latest policy is a step beyond the existing framework, which has allowed the creation of joint venture medical institutions with foreign investors.

China has more than 60 foreign-invested institutions.

The strategic plan precludes foreign ownership of hospitals specialising in traditional Chinese medicine and upholds a ban on the foreign takeover of state-run hospitals.