Shortcomings in China's hospitals leave scope for foreign investment
AFP, Beijing
Sitting on a soft leather sofa in an elegant cream-colored reception area, a Beijing woman waited for a doctor's appointment. The scene in a foreign-invested hospital contrasted sharply with that often seen in Chinese hospitals, most of which are state-run and notorious for their long lines, dirtiness and ill-tempered staff. "We come here because the conditions are good," said the woman at the Beijing United Family Hospital who gave her surname as Yang. "I have many Chinese friends who come here for check-ups during pregnancy. There's no need to line up and the attitude of the staff is nicer." Foreign investors are putting their money into turning around existing hospitals or opening new facilities and are banking on middle-class people like Yang and her friends. Since the Chinese government began allowing foreign investment in hospitals in 2000, interest has steadily grown, with more and more foreign-funded outpatient clinics in operation and speciality and general hospitals also starting to open. Previously targeting expatriates, the facilities now also lure the increasing number of well-to-do Chinese willing to pay more for better care. "The interest is rising at a steep rate," said David Wood, president of investment consultancy firm The ChinaCare Group. "Our survey shows people are willing to pay two to three times more for a higher standard of care." In the past two decades of economic reform, government and state-run companies' share of total health expenditure, including financial support for hospitals, drastically fell from 78 percent of the total in 1980 to 41 percent in 2002, according to official figures.
|