Medical Insurance Systems to Include Private Capital Invested Hospitals
Last Thursday the State Council has decided to place private capital invested hospitals in the medical insurance system, in hopes to encourage the development of medical institutions. Other measures such as the approval process to set up a hospital or clinic will also be streamlined and the preconditions wherein the number of beds will be canceled. All non profit private capital invested medical institutions providing basic medical healthcare services will get subsidies from the government and those hospitals invested using private capital will get favorable policies such as tax cuts.
According to Hu Shanlian a professor from the School of Public Health under the Shanghai based Fuban University that this is great news for such hospitals as a majority of hospitals are run by private capital especially those high end ones but have met great difficulties as they cannot get either government subsidies or join the national medical insurance systems. HU said that there are two ways for the government to give out subsidies, one is to give the hospitals money or buy their services.
The State Council ordered that private capital invested medical institutions to be covered in regional development plans for medical resources and raising capital for these institutions using equity financing and project financing will be supported. Pilot programs are created to simplify preconditions for doctors to work in different hospitals, furthermore the government will be establishing a supervisory system and help crackdown on illegal medical practices along with excessive medical treatments.