Published by ChinaMNC · Xianan

China's Primary Care Push: What Foreign Founders Need to Know

China's National Health Commission outlines reforms to strengthen primary care and chronic disease management. For foreign founders, this signals evolving opportunities in healthcare investment and compliance considerations.

Practical Takeaways for Foreign Founders

China's National Health Commission (NHC) recently responded to public concerns about accessing care and medications at the community level. While the reforms focus on domestic healthcare delivery, they carry implications for foreign entrepreneurs considering healthcare-related ventures or operating companies in China. Below is a summary of the key points from the NHC's response, translated into practical insights for international founders.

Strengthening Primary Care: What It Means for Your Healthcare Business

The NHC acknowledged that some grassroots medical institutions lack service capacity, as illustrated by a citizen's account of a relative who had to travel over 700 kilometers for a simple procedure. To address this, authorities are implementing measures from the April 2026 “Several Measures for Accelerating the Construction of a Hierarchical Diagnosis and Treatment System.” The goal is for common illnesses to be treated at the city/county level and routine conditions at the grassroots level.

Key initiatives include:

• Forming “compact medical consortiums” led by stronger hospitals, which will open clinics for common and chronic diseases at primary care facilities.
• Extending expert outpatient services from higher-level hospitals to grassroots institutions.
• Aiming to have mid- to senior-level personnel from higher-level hospitals permanently stationed at every township health center and community health service center.
• Promoting “general practice + specialty” joint clinics so residents can access both general practitioner health management and specialist guidance at the community level.
• Expanding mobile medical services to all counties with weak resources and continuing urban public hospital support for county-level hospitals and community health centers.

For foreign founders, these reforms indicate a growing emphasis on accessible care and may create opportunities in areas such as telemedicine, medical training, and health IT solutions that support primary care. However, any healthcare-related business must navigate China's foreign investment regulations, which may restrict or require special licenses for certain medical activities.

Chronic Disease Management: Long-Term Prescriptions and Drug Availability

Responding to complaints about cumbersome prescription processes for chronic conditions like hypertension, diabetes, and emphysema, the NHC's Department of Primary Health emphasized the principle of “medication follows the disease.” For patients with clear diagnoses, stable conditions, and long-term medication needs, healthcare providers can issue long-term prescriptions for up to 12 weeks per fill. Additionally, efforts are underway to ensure primary care facilities are stocked with medications for hypertension, type 2 diabetes, and chronic obstructive pulmonary disease (COPD), and to provide long-term prescription services and medication delivery for patients facing shortages.

This policy could benefit foreign-invested pharmaceutical companies and medical device firms by increasing demand for chronic disease treatments and related supplies in the primary care market. However, companies should note that drug registration, pricing, and distribution in China are subject to strict regulatory oversight.

Family Doctor Services: Integration with Specialists and Hospitals

In response to a student's observation that many residents still prefer higher-level hospitals and that family doctor contracts often go unused, the NHC outlined the scope of family doctor contracted services. These include basic medical care, public health services, and agreed health management, such as general and specialist consultations (both Chinese and Western medicine), medication guidance, and long-term prescriptions. In some areas, family doctors can book outpatient appointments at higher-level hospitals for contracted residents.

Going forward, the NHC plans to:

• Encourage more secondary and tertiary hospitals to allocate a proportion of expert appointments and inpatient beds to family doctors for referral services.
• Further implement long-term prescriptions for chronic diseases and align primary care medication lists with those of higher-level hospitals.
• Strengthen proactive contact with contracted residents and provide home hospital beds for those in need.

For foreign founders, these developments suggest a more integrated healthcare system, which could facilitate partnerships with local providers. However, forming joint ventures or investing in healthcare institutions requires careful compliance with China's negative list for foreign investment and sector-specific regulations.

Implications for Company Registration and Operation

While the NHC's response does not directly alter company registration procedures, it highlights the evolving healthcare landscape that foreign founders should consider when setting up operations in China. Here are key points to keep in mind:

• Entity Choice: Foreign investors in healthcare typically establish a wholly foreign-owned enterprise (WFOE) or a joint venture with a Chinese partner, depending on the activity. Some healthcare services may be restricted or prohibited under the negative list.
• Licensing: Operating a medical institution, selling pharmaceuticals, or providing telemedicine services requires specific licenses from health authorities, such as a Medical Institution Practice License or Drug Business License.
• Compliance: Adherence to regulations on drug pricing, advertising, and data privacy (e.g., Personal Information Protection Law) is crucial.
• Tax and Incentives: Healthcare is generally subject to standard corporate income tax, but certain activities in designated zones may qualify for incentives. Professional advice is recommended.

In summary, China's push to strengthen primary care and chronic disease management reflects a commitment to improving healthcare access, which may open doors for foreign businesses in related sectors. However, navigating the regulatory environment requires thorough preparation and local expertise.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.