By Huang Jianwen  King & Wood Mallesons’ Investment Group


Since 2010, the State Council has issued a series of policy documents promoting development of the healthcare industry by encouraging the inflow of social capital. As a result, non-public medical institutions have grown rapidly and their level of service has gradually improved. In general, however, the scale of non-public medical institutions is still small and the services they provide are still relatively low. Many difficulties and problems still exist: the potential of non-public medical institutions is limited; the threshold for entry into the industry is high; non-public medical institutions experience brain drain; and the regulatory mechanisms that regulate such institutions needs to be refined.

In order to solve these issues, the General Office of the State Council issued the Measures on Promoting the Growth of Non-public Medical Institutions (Guo Ban Fa [2015] No. 45)(hereinafter referred to as the “Measures”) on June 15, 2015. The intent of the Measures is to eliminate systematic obstacles and political constraints hindering the development of non-public medical institutions.

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