Shanghai FTZ cuts red tape for medical institutions

A branch of the SinoUnited Health Clinic is set to open in Zhangjiang, Shanghai's Pudong New Area, in the next month after only a half-year's preparation.

The high efficiency was due to a reform that integrates a medical institution setup permit and a medical institution registered qualification certificate into one permit in the China (Shanghai) Pilot Free Trade Zone, which greatly simplifies approval procedures.

It used to take nine months to one year to set up a medical institution, but now the period is three to five months shorter thanks to the simplified approval procedures, said Zhou Ying, director of operations at the SinoUnited Health Clinic.

Time is money. The shortened approval period helps save operation costs to the tune of 500,000 yuan ($72,469) in rentals if the clinic opens three months earlier, and also provides other more invisible benefits, according to Zhou. 

In addition to cutting red tape, the Shanghai FTZ also lowered the threshold for the launch of medical institutions, such as cancelling the limitation on government planning. 

Previously, the location selection of a medical institution depended on whether the government planned to build a medical institution in the region or not. But now only the factors of sufficient funding for the institution, its brand value and staff quality are emphasized. 

The SinoUnited Health Clinic, headquartered in Shanghai, is a leading medical service provider in China that has opened three clinics in the city's Jing'an, Huangpu, and Pudong districts.