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Order of the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China

    (No. 11)

     

    The Interim Measures for the Administration of Sino-Foreign Joint and Cooperative Medical Institutions are hereby promulgated and shall come into force from July 1, 2000.

     

    May 15, 2000

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

     

    Chapter I General Provisions

     

    Article 1 These Measures have been enacted in accordance with the Law of the People's Republic of China on Sino-Foreign Joint Ventures, the Law of the People's Republic of China on Sino-Foreign Cooperative Ventures, Regulations on the Administration of Medical Institutions and other laws and regulations for the purpose of meeting the demand of carrying out the reform, opening up to the outside world, strengthening the administration of Sino-Foreign joint and Sino-Foreign cooperative medical institutions, and promoting the healthy development of the medical and hygiene undertaking of our country.

     

    Article 2 The "Sino-Foreign joint and Sino-Foreign cooperative medical institution" in These Measures means a medical institution established, in conformity with the principle of equality and mutual benefit and upon the approval of competent authorities of the Chinese government, by a foreign medical institution, company, enterprise or other economic organizations (hereinafter referred to as the "Foreign Party") and a Chinese medical institution, company, enterprise or other economic organizations (hereinafter referred to as the "Chinese Party")within the territory of the People's Republic of China on the basis of joint investment or cooperation.

     

    Article 3 Any application for establishing a Sino-Foreign joint or cooperative medical institution shall be governed by These Measures.

     

    Article 4 Any Sino-Foreign joint or cooperative medical institution shall observe the laws, regulations and rules of China. The lawful operation of the Sino-Foreign joint or cooperative medical institution and the lawful rights and interests of the parties to the institution shall be protected by Chinese laws.

     

    Article 5 The Ministry of Health and the Ministry of Foreign Trade and Economic Trade ("MOFTEC") are responsible for the administration of all Sino-Foreign joint and Sino-Foreign cooperative medical institutions nationwide within their respective scope of official duties.

     

    The health administrative authorities of the local people's government on the county level or above (including the traditional Chinese medical treatment or traditional Chinese medicine administrations) and the administrative departments in charge of foreign trade are responsible for the regular supervision and administration of the Sino-Foreign joint and cooperative medical institutions within their respective scope of official duties and their respective jurisdictions.

     

    Chapter II Conditions for Establishment

     

    Article 6 The establishment and development of Sino-Foreign joint and Sino-Foreign cooperative medical institutions must be in conformity with the health plan and the plan for the setup of medical institutions of all jurisdictions and for which the Basic Standards for Medical Institutions as stipulated by the Ministry of Health must be carried out.

     

    Article 7 Both parties applying for the establishment of a Sino-Foreign joint or Sino-Foreign cooperative medical institution shall be a legal person with a capability of independently undertaking civil liabilities. Both parties shall be directly or indirectly experienced in the investment and management of medical institutions, and shall meet one or more of the following requirements:

     

    1. Capable of providing internationally advanced managerial expertise, management pattern or service pattern of medical institutions;

     

    2. Capable of providing internationally advanced medical technologies and equipment;

     

    3. Able to narrow the gap in or improve medical service capability, medical technologies, funding and equipment of the jurisdiction.

     

    Article 8 The Sino-Foreign joint or cooperative institution to be established shall satisfy all the requirements as mentioned below:

     

    1. It shall be an independent legal person;

     

    2. The total investment shall not be lower than RMB 20,000,000 Yuan;

     

    3. The proportion of shares or interests of the Chinese party to the Sino-Foreign joint or cooperative medical institution shall not be lower than 30%;

     

    4. The term of the medical institution shall not be longer than 20 years;

     

    5. Other conditions as prescribed by the health administrative authorities on the provincial level or above.

     

    Article 9 Where the Chinese Party makes its contribution by way of state-owned assets (either evaluated assets or as a condition for cooperation), approval of competent government authorities shall be obtained for investment, and evaluation shall be made on the state-owned assets by evaluation agencies approved by the state-owned assets administrations in accordance with the provisions concerning the evaluation of state-owned assets. The evaluation results approved by the state-owned assets administrations on the provincial level or above may be used as a basis of the value of the state-owned assets to be contributed to the medical institution.

     

    Chapter III Approval and Registration

     

    Article 10 Before a joint medical institution is established, an application shall be filed with the health administrative authorities on the municipal level or above of the place where the institution is to be set up, and the materials as mentioned below shall be submitted:

     

    1. An application for the establishment of a medical institution;

     

    2. A project proposal and feasibility study report signed by the legal representative of both parties to the Sino-Foreign joint or cooperative medical institution;

     

    3. Certificates of registration (in duplicate), identification certificate of the legal representatives (in duplicate) and certificate of creditworthiness of both parties to the medical institution;

     

    4. Confirmation documents of the evaluation report presented by state-owned assets administrative authorities concerning the evaluation of state-owned assets to be contributed.

     

    A preliminary examination shall be made by the health administrative authorities of the city which is divided into districts over the materials submitted by applicants and initial opinions be issued in conformity with the local health plans and plans for the setup of medical institutions. The initial opinions, together with the application materials, the local health plans and plans for the setup of medical institutions shall be reported to the health administrative authorities on the provincial level for verification.

     

    Article 11 The health administrative authorities on the provincial level shall make verifications over the application materials and the initial opinions of the administrative authorities of the city which is divided into districts and then report to the Ministry of Health for examination and approval.

     

    The following materials shall be submitted by the health administrative authorities on the provincial level for examination and approval:

     

    1. Application materials of the applicant;

     

    2. Plan for the Setup of Medical Institutions approved by the people's government of the city with districts of the place where the institution is to be set up for promulgation and implementation, and opinions of the health administrative authorities on the municipal and provincial levels of the place where the institution is to be set up about whether the establishment of the Sino-Foreign joint or cooperative medical institution is in conformity with the health plans and plan for the setup of medical institutions of the jurisdiction;

     

    3. Opinions of the health administrative authorities on the provincial level concerning the establishment of the Sino-Foreign joint or cooperative medical institution, including opinions about the title, site, scale (sickbeds, dental chairs), business scope and term of duration of the medical institution;

     

    4. Other materials as required by laws, regulations and stipulations of the Ministry of Health.

     

    The Ministry of Health shall decide in written form whether to approve or disapprove the project within 45 days after receipt of the materials mentioned above.

     

    Article 12 An application for establishing a Sino-Foreign joint or cooperative medical institution of traditional Chinese medicine(including Sino-Foreign joint or cooperative medical institution of both traditional Chinese and western medicine and Sino-Foreign joint or cooperative medical institution of ethnic minorities medicine) shall be subject to the initial examination of the health administrative authorities of the city with districts of the place where the institution is to be set up, the verification of the health administrative authorities on the provincial level of the jurisdiction and the verification of the State Administration of Traditional Chinese Medicine and to the final examination and approval of the Ministry of Health.

     

    Article 13 After obtaining the approval of the Ministry of Health for establishment, the applicant shall, in accordance with relevant laws and regulations, submit to MOFTEC the following materials:

     

    1. Application materials and approval documents;

     

    2. Contracts and articles of association for the Sino-Foreign joint or cooperative medical institution signed by the legal representative or authorized representatives of both parties;

     

    3. Names of members of the board of directors of the medical institution to be established and letters of appointment of directors issued by both parties;

     

    4. Notice of prior approval of institutional titles issued by the Administration for Industry and Commerce;

     

    5. Other materials required by laws, regulations and stipulations of MOFTEC.

     

    MOFTEC shall, within 45 days after receiving the application, decide in the written form whether to approve or disapprove the establishment. If approval is granted, a Certificate of Approval of Foreign-funded Enterprises shall be issued.

     

    The approved Sino-Foreign joint or cooperative medical institution shall, within one month after receiving the Certificate of Approval of Foreign-Funded Enterprises issued by MOFTEC, get registered at the State Administration for Industry and Commerce by presenting the Certificate.

     

    Article 14 An application for establishing a Sino-Foreign joint or cooperative medical institution in the central and western region or early-liberated, minority nationality, border and poor areas of China, or if the scope or items for services of the medical institution falls within the category of projects encouraged by the state, the provisions of articles 7 and 8 of These Measures may be applied with flexibility.

     

    Article 15 The approved Sino-Foreign joint or cooperative joint medical institution shall, according to the provisions of the Regulations for the Administration of Medical Institutions and the Measures for the Implementation of the Regulations for the Administration of Medical Institutions concerning the procedure and requirements for the registration of medical institutions, apply to the health administrative authorities on the provincial level of the jurisdiction for business registration and for a Business License of Medical Institutions.

     

    The administrative authorities on the provincial level decide, according to the type and scale of the institution, whether an application for business registration of Sino-Foreign joint or cooperative medical institutions shall be accepted by the health administrative authorities on the provincial level or those on the level of the city with districts.

     

    Article 16 The naming of a Sino-Foreign joint or cooperative medical institution shall conform with the provisions of the Measures for the Implementation of the Regulations for the Administration of Medical Institutions enacted by the Ministry of Health. The title of the Sino-Foreign joint or cooperative medical institution consists sequentially of the name of the place where the institution is to be set up, the identification name and the commonly used name.

     

    Article 17 No Sino-Foreign joint or cooperative medical institution may be allowed to set up branch organizations.

     

    Chapter IV Alteration, Extension and Termination

     

    Article 18 Where an existing Sino-Foreign joint or cooperative medical institution alters its scale (sickbeds, dental chairs), business scope, investment, term of duration, it shall, after obtaining an approval from the original approving authorities in accordance with the provisions of Chapter Three of These Measures, go through alteration registration procedures at the original registration authorities.

     

    Any alteration in the contract or articles of association of a Sino-Foreign joint or cooperative medical institution shall be subject to the approval of MOFTEC via the department of foreign trade and economic cooperation of the jurisdiction.

     

    Article 19 Upon the expiration of the 20-year term of duration of a Sino-Foreign joint or cooperative medical institution, if the circumstances are so special that the term needs to be extended, both parties to the institution may apply for extension. The application shall be made within 90 days prior to the expiration of the term of duration. The application shall be agreed upon by the health administrative authorities and the department of foreign trade and economic trade on the provincial level and reported to the Ministry of Health and MOFTEC for examination and approval. The approving authorities shall decide in the written form whether to approve or disapprove the application within 45 days after the receipt of the application.

     

    Article 20 An approved Sino-Foreign joint or cooperative medical institution shall complete registration formalities within the period provided by the approving authorities; where it fails to complete the formalities, the joint or cooperative project shall be canceled upon the verification of the approving authorities.

     

    Chapter V Business Operation

     

    Article 21 A Sino-Foreign joint or cooperative medical institution is an independent legal person that assumes sole responsibilities for its own profits and losses, keeps separate accounts and takes civil liabilities independently.

     

    Article 22 A Sino-Foreign joint or cooperative medical institution shall carry out the provisions of the Regulations on the Administration of Medical Institutions and the Measures for the Implementations of the Regulations on the Administration of Medical Institutions concerning the business operations of medical institutions.

     

    Article 23 A Sino-Foreign joint or cooperative medical institution shall carry out the norms of medical technologies and clinical therapist norms, observe the relevant provisions concerning the therapist application of new technologies, new equipment and large medical equipment.

     

    Article 24 Any medical negligence of any Sino-Foreign joint or cooperative medical institution shall be handled in accordance with the relevant laws and regulations.

     

    Article 25 The employment of foreign doctors and nurses by any Sino-Foreign joint or cooperative medical institution shall be carried out in accordance with the provisions of the Law of the People's Republic of China on General Practitioners and the Measures the People's Republic of China for the Administration of Nurses.

     

    Article 26 Where a disaster, accident, epidemic disease or other contingencies break out, the Sino-Foreign joint or cooperative medical institution and its staff shall obey the orders of health administrative authorities for dispatch.

     

    Article 27 The publication of advertisements of any Sino-Foreign joint or cooperative medical institution shall be carried out in accordance with the Advertising Law of the People's Republic of China and the Measures for the Administration of Medical Advertisements.

    Article 28 The pricing of medical treatments of any Sino-Foreign joint or cooperative medical institution shall be carried out in accordance with the relevant provisions of the State.

     

    Article 29 The taxation policies of any Sino-Foreign joint or cooperative medical institution shall be carried out in accordance with the relevant provisions of the State.

     

    Chapter VI Supervision

     

    Article 30 The health administrative authorities at all levels above the county level are responsible for the routine supervision and administration of the Sino-Foreign joint and cooperative medical institutions within their respective jurisdictions.

     

    The Business License of Medical Institutions of Sino-Foreign joint and cooperative medical institutions shall be evaluated on the yearly basis. The evaluation of the Business License of Medical Institutions shall be made by the authorities in charge of the business registration of medical institutions.

     

    Article 31 A Sino-Foreign joint or cooperative medical institution shall, in accordance with the relevant provisions of the State concerning foreign-funded enterprises, accept the supervision of competent departments of the State.

     

    Article 32 Any violation of relevant laws, regulations and rules by any Sino-Foreign joint or cooperative institution shall be handled by competent authorities in charge. The health administrative authorities and departments in charge of foreign trade and economic cooperation on the county level and above may, in accordance with relevant laws, regulations or rules, punish a Sino-Foreign joint or cooperative medical institution for any violation of These Measures.

     

    Article 33 Where any local health administrative authorities or local departments in charge of foreign trade and economic cooperation violate These Provisions by approving unlawful establishment or alteration of any Sino-Foreign joint medical institution, relevant persons-in-charge shall be held responsible.

     

    The establishment of any Sino-Foreign joint or cooperative medical institution by both parties without obtaining an approval from the Ministry of Health or MOFTEC and engage in medical operations or therapist projects by way of contract shall be held as illegal, and shall be punished according to the Regulations on the Administration of Medical Institutions, the Measures for the Implementation of the Regulations on the Administration of Medical Institutions and other relevant provisions.

     

    Chapter VII Supplementary Provisions

     

    Article 34 The investment from the Hong Kong Special Administrative Region, the Macao Special Administrative Region and China's Taiwan in running joint or cooperative medical institutions within the Mainland of China, These Measures shall be referred to for implementation.

     

    Article 35 An application for establishing a solely foreign-funded medical institution shall be disapproved.

     

    Article 36 The health administrative authorities and departments in charge of foreign trade and economic cooperation of all provinces, autonomous regions and municipalities directly under the Central Government may enact more detailed rules according to the specific situations of their respective jurisdictions.

     

    Article 37 These Measures shall be subject to the interpretation of the Ministry of Health and MOFTEC.

     

    Article 38 These Measures shall take into effect on July 1, 2000.

     

    The document (No. 3, 1989) promulgated by the Ministry of Health on February 10, 1989 and the document (No. 292, 1997) promulgated by the MOFTEC on April 30, 1997 shall be simultaneously repealed.