Health Authority Encourages More Private Fundings in Building Hospitals in the City
For the first time in the city’s history the municipal government is inviting private institutions to submit public bids for a land lot sale that is slated for a hospital in Minzhi in Longhua New Area. As of the moment there are seventeen bidders that gave in their bids ranging from real estate developers, hospital groups and insurance companies from different parts of the country.
The land lot which measures around 46,221.39 square meters of area in Minzhi has an entitled usage of 50 years, and according to the city medical and health authority the land price is around 750 yuan per square meter which is lower that other land lots that is slated for other uses. The sale of the land can offer some relief to the difficulties the development that private hospitals are facing. Private hospitals that are constructed on land that was sold at equal prices of for commercials use are usually faced with heavier operation costs compared to State owned hospitals.
In a government implemented regulations that was released last November, stated that the city will take the lead in encouraging the use of private funds to run hospitals. The regulation created a policy foundation for these private hospitals to get several support measures ranging from rights to use land, talent recruitment, social security and tax rebates. The land sale will need a hospital project with a 1.2 billion investment for a 800 bed hospital that offers basic health services.
By the end of 2013 the city has around 2,155 private medical institutions from private hospitals, outpatient clinics and community clinics which is 77 percent of the total health care institutions in the city.