New hot spots of China's hospital for capital inflow: investing risk perspective

Abstract

This research attempts to illustrate Chinese medical services industry developments and explore investment risks in China's health services sector. After reviewing existing literature and conducting in-depth interviews with experienced foreign investors of hospital's managers, the present study analyzes and categorizes risks as follows: policy risk, insufficient information and lack of transparency, law risk, organization system risk, and management risk of joint-venture hospitals and clinics. Additionally, this study outlines some of the main barriers inhibiting trade in health services. Research results recommend that foreign investors interested in the Chinese health services market should understand the regulations for limiting the competition to a degree incommensurate with local Chinese hospitals. Finally, the study discusses implications of these findings for foreign investors, China's medical services industry, and future research