Private hospitals are unique words in China. Private hospitals refer to health institutions funded by society and led by for-profit institutions. There are also a few non-profit organizations enjoying government subsidies. In 1980s, private hospitals appeared in China medical industry. But the real large-scale development of private hospitals in China was after 200 1. Although the policy does not restrict the establishment of private hospitals, the health department has very strict requirements for private hospitals for the protection of public hospitals, and it is difficult for private hospitals to develop in such an environment. In September of 20001year, China opened the medical market and encouraged the development of private medical institutions. A large number of private hospitals began to appear in society.
Background of setting up private hospitals:
In the early days of the People's Republic of China, all medical institutions were owned by the state, with unified expenditures and profits. With the reform and opening up and economic development, in order to meet the needs of the market economy and better develop medical undertakings, the state allows private funds and foreign capital to invest in medical and health undertakings, thus forming private hospitals with the slogan of flexibility and pursuit of quality services.
Extended data:
The nature of private hospitals:
The Implementation Opinions on Classified Management of Urban Medical Institutions stipulates: "Urban individual clinics, private hospitals, joint-stock systems, joint-stock cooperative systems and Sino-foreign joint venture cooperative medical institutions are generally classified as for-profit medical institutions." Because of this, most private hospitals are positioned as for-profit hospitals, so trusteeship, joint ventures and mergers and acquisitions have become the ways for many social capitals to enter public hospitals to obtain the qualifications of non-profit hospitals. Although it is more difficult to enter the medical market in this way than to build a new hospital, many private capitals enjoy it because they can not only obtain the qualification of designated medical insurance, but also enjoy the tax exemption policy of non-profit hospitals.
However, the relevant policies are not hard and fast. After public hospitals are transformed into private hospitals in the above ways, they must be transformed into for-profit hospitals. The hospital has large investment, long payback period, large early expenditure and stable late return. Although there are many regular investors, it does not rule out the profitability of social capital investment hospitals. If there is no good exit channel for social capital, it will force it to pursue short-term interests and choose the way of "making profits as soon as it is invested, and preparing to quit as soon as it is profitable".
References:
Baidu encyclopedia-private hospital
References:
Baidu encyclopedia-public hospital