Tweak Management

Tweak Management

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China Hospital Investment Risks

So you are considering entering the China hospital/clinic market? Our hospital experience encompasses a mix of Western and Asian countries and without a doubt China is unlike any other healthcare environment. 

The Chinese government is actively encouraging investment in the private hospital sector. However, for every success there are also failures. One of the biggest mistakes we have seen is due to the inherent “operating system” of foreign investors. That is, they are naturally using as a base their understanding of how the hospital landscape operates, which invariably has been shaped by their experiences outside China.  This is logical as our understanding must start from somewhere. However, the problems arise when the investor does not address this weakness.

A key success factor in China is making a priority of first taking the time to really understand the legal and operating environment of hospitals in the market. It is critical to note that complexity is magnified by the possibility that each district, city, and province may have a different interpretation of the implementation of national policy. Simply put, one cannot take the understanding of laws and rules gleaned from operating a hospital in one area in China and presume it is the same interpretation everywhere else. The China Ministry of Health promulgates policy of which subordinates are permitted to design an implementation unique to their situation.

Tweak Management’s value comes from having multiple actual examples of this phenomenon to aid investors in understanding this key area, through our many years managing private hospitals in China. You can start understanding the environment right away through booking a consultation.