Interim Measures for the Administration of Sino-foreign Joint Venture and Cooperative Medical Institutions

  Chapter I General Provisions

  Article 1 In order to further meet the needs of reform and opening up, strengthen the management of Sino-foreign joint ventures and cooperative medical institutions, and promote the healthy development of China’s medical and health undertakings, these Measures are formulated in accordance with the Law of People’s Republic of China (PRC) on Sino-foreign Joint Ventures, the Law of People’s Republic of China (PRC) on Chinese-foreign Cooperative Enterprises, the Regulations on the Administration of Medical Institutions and other relevant national laws and regulations.

  Article 2 Sino-foreign joint ventures and cooperative medical institutions mentioned in these Measures refer to medical institutions established by foreign medical institutions, companies, enterprises and other economic organizations (hereinafter referred to as joint ventures and cooperative parties) in China (except Hongkong, Macau and Taiwan Province, the same below) with medical institutions, companies, enterprises and other economic organizations in China (hereinafter referred to as joint ventures and cooperative parties) on the principle of equality and mutual benefit and with the approval of the competent department of China government.

  Article 3 These Measures shall apply to the application for the establishment of Sino-foreign joint ventures and cooperative medical institutions in China.

  Article 4 Chinese-foreign joint ventures and cooperative medical institutions must abide by the relevant laws, regulations and rules of the state. The legitimate business activities of Sino-foreign joint ventures and cooperative medical institutions and the legitimate rights and interests of both parties are protected by the laws of China.

  Article 5 The Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as MOFTEC) shall be responsible for the administration of Chinese-foreign joint ventures and cooperative medical institutions throughout the country within their respective functions and duties.

  The administrative department of health of the local people’s governments at or above the county level (including the competent department of traditional Chinese medicine/pharmacy) and the administrative department of foreign trade and economic cooperation shall be responsible for the daily supervision and management of Sino-foreign joint ventures and cooperative medical institutions within their respective administrative areas.

  Chapter II Setting Conditions

  Article 6 The establishment and development of Sino-foreign joint ventures and cooperative medical institutions must conform to the local regional health planning and the establishment planning of medical institutions, and implement the Basic Standards for Medical Institutions formulated by the Ministry of Health.

  Article 7 Both Chinese and foreign parties applying for the establishment of a Sino-foreign joint venture or cooperative medical institution shall be legal persons who can independently bear civil liabilities. The Chinese and foreign parties to a joint venture or cooperation shall have experience in directly or indirectly engaging in medical and health investment and management, and meet one of the following requirements:

  (a) to provide international advanced management experience, management model and service model of medical institutions;

  (two) to provide medical technology and equipment with international leading level;

  (three) can supplement or improve the local medical service capacity, medical technology, funds and medical facilities.

  Article 8 A Sino-foreign joint venture or cooperative medical institution established shall meet the following conditions:

  (1) It must be an independent legal person;

  (two) the total investment shall not be less than 20 million yuan;

  (3) The equity ratio or rights and interests of the Chinese side in a Sino-foreign joint venture or cooperative medical institution shall not be less than 30%;

  (4) The term of joint venture and cooperation shall not exceed 20 years;

  (5) Other conditions stipulated by the health administrative department at or above the provincial level.

  Article 9 In a joint venture or cooperation, if the Chinese side participates in the investment with state-owned assets (including the contribution at a fixed price or as a condition of cooperation), it shall be approved by the corresponding competent department, and the state-owned assets to be invested shall be evaluated by an evaluation agency confirmed by the state-owned assets management department in accordance with the relevant provisions on the evaluation and management of state-owned assets. The evaluation results confirmed by the state-owned assets management department at or above the provincial level can be used as the basis for pricing the state-owned assets to be invested.

  Chapter III Establishment, Approval and Registration

  Article 10 To set up a Sino-foreign joint venture or cooperative medical institution, an application shall be submitted to the municipal health administrative department where the district is located, and the following materials shall be submitted:

  (1) An application for establishing a medical institution;

  (two) the project proposal signed by the legal representatives of the joint venture and the cooperative party and the feasibility study report on the establishment of the Sino-foreign joint venture and cooperative medical institution;

  (3) Registration certificates (photocopies), identity certificates of legal representatives (photocopies) and bank credit certificates of both parties to the joint venture and cooperation;

  (four) the state-owned assets management department’s confirmation document on the evaluation report of the state-owned assets to be invested.

  The municipal health administrative department with districts shall conduct preliminary examination on the materials submitted by the applicant, and put forward preliminary examination opinions according to the regional health planning and medical institution setting planning, and submit them to the local provincial health administrative department for examination together with the application materials, local regional health planning and medical institution setting planning.

  Article 11 The provincial health administrative department shall review the application materials and the preliminary examination opinions of the municipal health administrative department with districts and report them to the Ministry of Health for approval.

  For approval, the provincial health administrative department shall submit the following materials to the Ministry of Health:

  (a) the applicant to set up application materials;

  (2) The Plan for the Establishment of Medical Institutions approved and implemented by the municipal people’s government with the establishment of districts, and the audit opinions of the municipal and provincial health administrative departments with the establishment of districts on whether the proposed Sino-foreign joint venture and cooperative medical institutions conform to the local regional health plan and the plan for the establishment of medical institutions;

  (3) the examination opinions of the provincial health administrative department on the establishment of the Sino-foreign joint venture and cooperative medical institution, including the opinions on the name, site selection, scale (beds, dental chairs), diagnosis and treatment subjects and operating period of the proposed Sino-foreign joint venture and cooperative medical institution;

  (4) Other materials as prescribed by laws, regulations and the Ministry of Health.

  The Ministry of Health shall, within 45 working days from the date of acceptance, make a written decision on approval or disapproval.

  Article 12 An application for the establishment of a Chinese-foreign joint venture or cooperative medical institution of traditional Chinese medicine (including a Chinese-foreign joint venture or cooperative medical institution of integrated traditional Chinese and western medicine and a Chinese-foreign joint venture or cooperative medical institution of ethnic medicine) shall, in accordance with the requirements of Articles 10 and 11 of these Measures, be subject to the preliminary examination of the local municipal health administrative department with districts and the examination of the local provincial health administrative department, and be submitted to state administration of traditional chinese medicine for examination and approval.

  Article 13 After obtaining the permission of the Ministry of Health, the applicant shall apply to the Ministry of Foreign Trade and Economic Cooperation in accordance with relevant laws and regulations, and submit the following materials:

  (1) Setting up application materials and approval documents;

  (2) The contract and articles of association of the Sino-foreign joint venture and cooperative medical institution signed by the legal representatives of the parties or their authorized representatives;

  (3) A list of members of the board of directors of the medical institution to be established as a Sino-foreign joint venture or cooperative medical institution, and a letter of appointment from each party to the joint venture or cooperative medical institution;

  (four) the notice of pre-approval of the organization name issued by the administrative department for industry and commerce;

  (5) Other materials stipulated by laws, regulations and MOFTEC.

  MOFTEC shall, within 45 working days from the date of accepting the application, make a written decision on approval or disapproval; If it is approved, a Certificate of Approval for Foreign-invested Enterprises shall be issued.

  A Chinese-foreign equity joint venture or cooperative medical institution approved for establishment shall, within one month from the date of receiving the Approval Certificate for Foreign-invested Enterprises issued by the Ministry of Foreign Trade and Economic Cooperation, go through the registration formalities with the State Administration for Industry and Commerce by virtue of this certificate.

  Article 14 The application for establishing a Sino-foreign equity joint venture or cooperative medical institution in the central and western regions of China or in the old, less developed, border and poor areas or the scope and content of medical services provided by the Sino-foreign equity joint venture or cooperative medical institution applied for establishment belong to the service field encouraged by the state, and the conditions stipulated in Articles 7 and 8 may be appropriately relaxed.

  Article 15 A Chinese-foreign equity joint venture or cooperative medical institution that is approved to be established shall apply to the health administrative department specified by the local provincial health administrative department for practice registration and obtain the Practice License of Medical Institution according to the procedures and requirements stipulated in the Regulations on the Administration of Medical Institutions and the Detailed Rules for the Implementation of the Regulations on the Administration of Medical Institutions.

  According to the category and scale of Sino-foreign joint venture and cooperative medical institutions, the provincial health administrative department or the municipal health administrative department with districts shall accept the application for practice registration of Sino-foreign joint venture and cooperative medical institutions.

  Article 16 The naming of Sino-foreign joint ventures and cooperative medical institutions shall follow the provisions of the Detailed Rules for the Implementation of the Regulations on the Administration of Medical Institutions issued by the Ministry of Health. The names of Chinese-foreign joint ventures and cooperative medical institutions are composed of local place names, identification names and common names in turn.

  Article 17 Chinese-foreign joint ventures and cooperative medical institutions shall not set up branches.

  Chapter IV Alteration, Extension and Termination

  Article 18 Where an established Sino-foreign joint venture or cooperative medical institution changes its institution scale (beds and dental chairs), diagnosis and treatment subjects, joint venture and cooperation period, it shall go through the corresponding change registration procedures at the original registration authority according to the examination and approval procedures specified in Chapter III of these Measures.

  Changes in the relevant clauses of contracts and articles of association of Chinese-foreign joint ventures and cooperative medical institutions shall be reported to the Ministry of Foreign Trade and Economic Cooperation for approval.

  Article 19 If it is really necessary to extend the joint venture and cooperation period of a Chinese-foreign joint venture or cooperative medical institution after the expiration of 20 years, both parties may apply for an extension of the joint venture and cooperation period, and shall apply for an extension 90 days before the expiration of the joint venture and cooperation period. The application for extension shall be submitted to the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation for approval after being examined and approved by the provincial health administrative department and the foreign trade administrative department. The examination and approval authority shall, within 45 working days from the date of receiving the application, make a written decision on approval or disapproval.

  Article 20 A Chinese-foreign equity joint venture or cooperative medical institution approved for establishment shall complete the relevant registration procedures within the time limit prescribed by the examination and approval authority; If it fails to be completed within the time limit, the joint venture and cooperation project shall be revoked after approval by the examination and approval authority.

  Chapter V Practice

  Article 21 Chinese-foreign joint ventures and cooperative medical institutions, as independent legal entities, shall be responsible for their own profits and losses, conduct independent accounting and bear civil liabilities independently.

  Article 22 Chinese-foreign joint ventures and cooperative medical institutions shall implement the regulations on the administration of medical institutions and the detailed rules for the implementation of the regulations on the administration of medical institutions on the practice of medical institutions.

  Twenty-third Chinese-foreign joint ventures and cooperative medical institutions must implement the medical technology access standards and clinical diagnosis and treatment technical standards, and abide by the relevant provisions on the clinical application of new technologies, new equipment and large medical equipment.

  Article 24 Medical accidents in Chinese-foreign joint ventures and cooperative medical institutions shall be handled in accordance with relevant state laws and regulations.

  Article 25 The employment of foreign doctors and nurses by Chinese-foreign joint ventures and cooperative medical institutions shall be handled in accordance with the Law of People’s Republic of China (PRC) on Medical Practitioners and the Measures of People’s Republic of China (PRC) for the Administration of Nurses.

  Article 26 In case of major disasters, accidents, epidemics of diseases or other unexpected situations, Chinese-foreign joint ventures and cooperative medical institutions and their health technicians shall obey the assignment of the health administrative department.

  Twenty-seventh Chinese-foreign joint ventures and cooperative medical institutions shall publish their own medical advertisements in accordance with the Advertising Law of People’s Republic of China (PRC) and the Measures for the Administration of Medical Advertisements.

  Twenty-eighth Chinese-foreign joint ventures and cooperative medical institutions shall pay medical fees in accordance with the relevant provisions of the state.

  Article 29 The tax policies of Chinese-foreign joint ventures and cooperative medical institutions shall be implemented in accordance with the relevant provisions of the state.

  Chapter VI Supervision

  Thirtieth local health administrative departments at or above the county level shall be responsible for the daily supervision and management of Sino-foreign joint ventures and cooperative medical institutions within their respective administrative areas.

  The Medical Institution Practice License of Sino-foreign joint venture and cooperative medical institutions shall be verified once a year, and the verification of the Medical Institution Practice License shall be handled by the medical institution practice registration authority.

  Article 31 Chinese-foreign joint ventures and cooperative medical institutions shall, in accordance with the relevant provisions of the state on foreign-invested enterprises, accept the supervision of relevant state departments.

  Thirty-second Chinese-foreign joint ventures and cooperative medical institutions that violate the relevant laws, regulations and rules of the state shall be investigated and dealt with by the relevant competent departments according to law. For Chinese-foreign joint ventures and cooperative medical institutions that violate these measures, the health administrative departments at or above the county level and the foreign trade and economic cooperation departments may punish them according to relevant laws, regulations and rules.

  第三十三条  地方卫生行政部门和地方外经贸行政部门违反本办法规定,擅自批准中外合资、合作医疗机构的设置和变更的,依法追究有关负责人的责任。

  中外各方未经卫生部和外经贸部批准,成立中外合资、合作医疗机构并开展医疗活动或以合同方式经营诊疗项目的,视同非法行医,按《医疗机构管理条例》和《医疗机构管理条例实施细则》及有关规定进行处罚。

  第七章  附则

  第三十四条  香港特别行政区、澳门特别行政区、台湾地区的投资者在大陆投资举办合资、合作医疗机构的,参照本办法执行。

  第三十五条  申请在中国境内设立外商独资医疗机构的,不予以批准。

  第三十六条  各省、自治区、直辖市卫生、外经贸行政部门可依据本办法,结合本地实际制订具体规定。

  第三十七条  本办法由卫生部和外经贸部负责解释。

  第三十八条  本规定自2000年7月1日起实施。

  一九八九年二月十日颁布的卫医字〔89〕第3号文和一九九七年四月三十日颁布的〔1997〕外经贸发第292号文同时废止。