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Private Hospitals Face Trust Crisis, Tax Break Withdrawal

This article was originally published in PharmAsia News

Executive Summary

Private hospitals in China have undergone tremendous development in the past 15 years. According to statistics, the roughly 20 facilities before 1998 have shot up to the current 1,792. However, such hospitals are facing major trust issues and an impending termination of preferential taxation. Survey by the authorities revealed that private hospitals account for more than 80 percent of false advertisements, and only 8 percent of respondents indicated they would choose these facilities for minor ailments. Expiry of three-year preferential taxation means the operations will need to foot 16 taxes, which may eat up to 10.6 percent of revenue. Private hospital administrators exhort the government to reduce or abolish some taxes to help address their difficulty. (Click here for more)



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