All hospitals affiliated to China’s State-owned enterprises (SOEs) were required to completely separate from their owners by the end of 2018 through sales to local governments, closure, resources integration or restructuring with private capital, according to the State-owned Assets Supervision and Administration Commission.
By
NewsChina
Updated Feb.1
All hospitals affiliated to China’s State-owned enterprises (SOEs) were required to completely separate from their owners by the end of 2018 through sales to local governments, closure, resources integration or restructuring with private capital, according to the State-owned Assets Supervision and Administration Commission. The divorce process started 16 years ago when China was home to over 7,000 hospitals affiliated to SOEs, mainly in the coal, oil, steel and other mineral resources industries. But by 2017, over 2,000 hospitals had failed to cut ties, including more than 30 major clinics. SOEs were subsidizing these hospitals to the tune of more than 10 billion yuan (US$1.45b). It is not difficult for local governments to take over profitable hospitals, but for those operating in the red, or which have management problems or are located in rural areas, it has turned out to be a hot potato.
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