China’s Rules for Foreign-Owned Hospitals Limit Access to Genetic Data

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Wholly-foreign owned hospitals seeking to operate in China need to have medical technology and equipment that meets leading international standards. Photo: AI generated

After a recent policy change allowed wholly foreign-owned hospitals to operate in China for the first time, the authorities have released guidelines on their operation — including restrictions designed to limit the hospitals’ access to patients’ genetic information.

Under the guidelines, foreign investors may not set up institutions for treating psychiatric and infectious diseases or establish traditional Chinese medicine and integrated Chinese-Western medicine hospitals.

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China allows wholly foreign-owned hospitals, restricting certain operations like psychiatric, infectious diseases, and specific procedures to protect genetic data.
Guidelines require 50% Chinese management and healthcare staff and focus on advanced technology and local healthcare enhancement.
These hospitals target expatriates and Chinese citizens with diverse needs, with possibilities for inclusion in the national health insurance program and foreign insurance support.

AI generated, for reference only

Who’s Who

Latitude Health: Latitude Health is a health care strategy consulting firm founded by Zhao Heng. The firm provides insights into health care management, technology, and policy, focusing on expanding differentiated services in the sector. Zhao Heng's commentary highlighted that management, technology, and supplementation are core considerations in China's policy for foreign-owned hospitals.

AI generated, for reference only

What Happened When

September 2024：: Authorities including the NHC launched a pilot program allowing wholly foreign-owned hospitals to operate in eight cities in China.

Last week：: A notice was released by four government bodies, including the National Health Commission (NHC) and the Ministry of Commerce, detailing restrictions on wholly foreign-owned hospitals.