Government to Offer Subsidies for Every Patient a Hospital Sees
The city local government is offering a reward of around 20 million yuan to private investors that set up or upgrade a medical institution to a top level hospital and provide other financial support to encourage private investment in health care. The city health commission revealed detailed measures that were derived from older regulations that promote investment in health care.
Other financial supports will include offering a 20 yuan subsidy for every outpatient a hospital receives and 60 yuan subsidy for every inpatient. Children and specialized hospitals will be getting a slightly higher subsidy. Hospitals will also get tax refunds of 40 percent of the tax paid in the previous financial year and will also get a 700,000 yuan subsidy when building a new research and treatment center.
In all Chinese cities only Shenzhen is offering the most impressive financial support to private investors in the health care industry. There are 75 private hospitals in the city and most of them are in the grade 1 or 2 ranking which are smaller and not as good as grade three hospitals. Health care resources in Shenzhen are enough for a large city and is especially encouraging private investors to build a hospital in areas such as Pinghu, Minzhi, Longcheng, and Shajing where Huawei Technologies is located and a highly concentrated population can be found but no high rated hospital.
Basic health care service other than elective procedures such as plastic surgery that are provided by this hospitals are required to take up 50 percent of all medical services that are being offered in order to be eligible for the financial support.