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In spite of a more rigid limit set for the use of medical insurance, some private hospitals have even failed to register as a designated hospital for medical insurance.
Professor Ma Jin with Shanghai Jiaotong University is an expert in public health. He says based on his observation, some private hospitals have complained that authorities have referred to double standards in this process.
Prof. Ma Jin, Shanghai Jiaotong University
They believe it's much easier for government hospitals to obtain the qualification as a designated hospital for medical insurance. But for themselves, even if they manage to obtain the qualification, they would receive inspections from relevant authorities on an annual basis.
At the just concluded health care forum 2009 held by CEIBS, the privatization trend of China's health care sector was a hot topic. Dr. Hans Troedsson, WHO's representative in China, says that for the sake of a healthy development of the country's health care sector, it's actually unnecessary to raise tough requirements for private hospitals.
Dr. Hans Troedsson, WHO
It doesn't matter who's providing health care services as long as they are operating within the policy, laws and regulations set by the government.
To cope with the current policies and to survive the competition, private non-profit hospitals in China could only adjust their strategies and as a result, a good quantity of them has chosen to focus on specialized departments.
But outside a certain specialized department, there are usually very few patients in a private hospital. A major reason behind is that those hospitals always lack in sophisticated doctors in all areas.
Dr. Jeffrey Staples with Parkway Health says the biggest challenge in this regard lies in the licensing mechanism for Chinese physicians.
Dr. Jeffrey Staples, Division President of China &North Asia Operations, Parkway Health Medical Centers
Currently, Chinese physicians can only get licensed in one facility. That means it's very difficult for a Chinese physician working with a government hospital to also work for a private facility.
Besides, insiders say another reason that matters is that it would be much more difficult for a doctor to obtain titles of professionals in a private hospital, where the establishment of such a mechanism is pretty much ignored.
In this regard, some say China's health care sector actually has a lot to learn from its foreign counterparts.
Michael Lim, Director of Cook (China) Medical Trading Co., Ltd
In the Singaporean health care system, a lot of doctors in private hospitals came from government hospitals. They've come to a level as being a senior consultant. If they don't find their way out to the private health care system to provide a differentiated level of service, a lot of junior doctors in government hospitals cannot move up their ranks. So, this, in a way, is a perfection of the health care system.
For the time being, private non-profit hospitals could only attract talents by offering higher salaries, which in turn adds to their operation cost and makes their survival even more difficult.
The Chinese government appears to be determined to promote privatization of the country's healthcare service. So what effective measures and solutions will be needed to make that happen? To find out more.. we polled hospital managers, industry insiders and experts.
Q1: Who are most suitable to invest in charity hospitals?
43%-- Non-profit Organizations and Philanthropists
39%-- Foreign Health Care Providers
12%-- Investors Looking for capital
Ying Xiaohua, Fudan Univeristy
One of well-run private and non-profit hospital is the Yangsi Hospital. The hospital is located in rural Pudong, where no government hospital wanted to set up branch there. Then the property developer funded the hospital on its own for non-profit purpose. Then...the developer earned back all the cost with the good sales of its properties around the hospital.
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