Beijing's Yiren Medical Group finalized its purchase on
Wednesday of the Guangzhou Petrochemical Hospital for 15 million
yuan (US$1.8 million). The hospital, operated as a state-owned
institution for 26 years, is now a non-profit, privately owned and
operated medical care facility.
Formerly operated by the Guangzhou Petrochemical Corporation, a
major state-owned enterprise, the hospital was officially renamed
the Guangzhou Yiren Hospital. Its registered capital will be 30
million yuan (US$3.6 million).
"The sale of the Petrochemical Hospital is a new test and will
be positive for medical reform in Guangdong
Province," said Liao Xinbo, deputy director of the Guangdong
Provincial Bureau of Public Health, on Thursday.
Liao also stated that the change in ownership will help to
introduce a fair and competitive market among state-owned hospitals
and their privately operated, foreign-funded and joint venture
counterparts in the province.
Guangdong Province, traditionally a leader in the country's
opening and reform drive, is planning to take bolder steps in
reorganizing its medical management and operation system by
allowing its hospitals to become shareholding companies,
foreign-funded and privately operated institutions, joint ventures,
or partial shareholding companies.
The reform requires hospitals to improve their standards of
medical treatment and offer better services. "Patients and local
residents will surely benefit from open and fair competition among
hospitals in the future," Liao added.
The provincial bureau of public health approved the purchase on
September 2.
The Yiren Medical Group will invest more than 450 million yuan
(US$54.4 million) to upgrade and expand the hospital in the next
few years.
The first phase of expansion will cost 200 million yuan (US$24.2
million) and will include the construction of a new 14-story
building for outpatient and inpatient services. The number of beds
will increase from the current 150 to more than 500 when the first
phase is completed in two years.
The company is also planning to invest more than 70 million yuan
(US$8.5 million) in new, advanced medical equipment purchased from
abroad later this year.
The hospital is expected to become the largest in Guangzhou's
Huangpu District.
Now specializing in treating poisonings, burns and wounds from
explosions and other emergencies, the hospital will also focus on
studying, treating and curing cancer, tumors and neurological
diseases.
To this end, the hospital is currently considering recruiting
prestigious doctors and medical experts from around the
country.
The hospital will continue to offer medical services to more
than 35,000 employees of the Guangzhou Petrochemical Corporation,
their family members and other employees from major state-owned
enterprises located near the hospital.
(China Daily September 10, 2004)