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    China Business
     Aug 12, 2006
Taiwanese scent health danger in China
By Ting-I Tsai

TAIPEI - When the youngest son of the late Generalissimo Chiang Kai-shek's closest aide, Chen Li-fu, visited mainland China last September, he was planning to attend a family reunion and do a little sightseeing, but he didn't expect it would be his final journey.

James Chen unexpectedly died in Beijing. He was not a victim of any political intrigue between the Chinese Communist Party and Taiwan's Kuomintang (KMT). He was just one of the many victims of incompetence in China's hospitals.

For the more than a million Taiwanese residing on the mainland today, visiting a local hospital can prove a hazard to their health. But soon they may be able to check in with somewhat more confidence, since several Taiwanese hospitals will kick off



operations across the mainland by 2008. Healthy profit-making, however, will not come easy, analysts predict.

To enhance its own health-care development, China opened the hospital market to foreign investors in 2000 but set a ceiling of a 70% share in any one venture. Since then, China has approved more than 200 applications for joint-venture (JV) hospital investments.

For mainland-based Taiwanese, Beijing's green light has been a relief. In the past two decades, the only realistic prescription when sick was self-care or, in the event of a major illness, a trip back to Taiwan. Most Taiwanese residing on the mainland stock up with all kinds of medicines, ranging from relief from flu and stomach ache to headache tablets, before crossing the strait.

Their reluctance to visit mainland hospitals stems from a perception of extensive malpractice, plus demands for unnecessary examinations and treatments, as well as prescribing unnecessary or unknown medicines.

James Chen got the flu in Beijing during a trip last September. He was then diagnosed with liver cancer after being referred to a hospital for an examination. Chen wanted to double-check with Taiwanese doctors before proceeding, but the hospital insisted he go through a surgery immediately, claiming he was in critical condition.

His wife Lin Ying never managed to learn which doctor conducted the surgery, but found out her husband's ribs were broken and internal organs were bleeding when doctors tried to transplant a new liver in him. Lin has been fighting for an official apology and proper explanation from the hospital since last year, but no satisfactory response was ever granted.

"I simply don't understand why such a developing country would provide this kind of medical service," Lin said, "My motive is simply to issue a warning. I don't want to see the same thing happen again."

Anticipating high demand, Taiwan's United-Shin Healthcare Enterprise's Chen Xin Hospital in Shanghai opened in July 2001, staffed with Taiwanese doctors to serve Taiwanese patients. Some 150-200 outpatients visit the hospital daily.

The company's main goal, however, is using the hospital as a role model to promote its specialty, hospital management, and to win more contracts from local hospitals, according to the hospital's chief executive officer, Chang Huan-chen. "It has been a difficult path to operate a hospital here," Chang said, noting that it look a long time for the hospital to break even.

Another entrant is Want Want Hunan Hospital, part of the Want Want Food Group. It was one of three hospital JVs approved in 2000, and it opened last December with an initial investment of 700 million yuan (US$87.7 million). The group's president, Tsai Yien-ming, said he was frustrated visiting hospitals on the mainland.

"I always feel nervous, scared, and helpless when I visit [mainland] hospitals. I hope our hospital will ease patients' fears," Tsai was quoted on the hospital's website.

As the only private hospital in Changsha, a city of 6.6 million, it is not fully trusted, though. According to the hospital, it only receives about 500 outpatients daily despite the hospital being well equipped with medical gadgets from Siemens and having only three competitors. Furthermore, a hospital-staff boycott has made recruiting local professionals difficult.

"I have heard lots of Taiwanese entrepreneurs interested in opening hospitals in China, assuming they would make profits after hospitals were constructed. Want Want is probably an object lesson. It has faced numerous problems and loses 10 million yuan monthly," said Lee Yuan-the, former superintendent of the National Taiwan University Hospital and incumbent president of the Min-Sheng Healthcare Network, which cooperates with Want Want by sending Taiwanese doctors and conducting hospital management.

By the end of next year, more Taiwanese JVs will be launched, including high-tech giant Benq's hospitals in Nanjing and Suzhou, Formosa Plastic's Chang Gung hospital in Xiamen and Pou Chen's Yuyuan hospital in Guangdong. Meanwhile, Show Chwan health-care system and Country Hospital are evaluating the feasibility of opening hospitals.

Benq originally planned to operate a clinic solely for its own employees after several died on the mainland. It has become more ambitious, thinking that a Taiwan-run hospital will promote its image in China.

Benq's first hospital with 3,000 beds in Nanjing will open in October 2007, and its Suzhou location with 1,500 beds will initiate operations a year later.

Acknowledging the current problems Taiwanese hospitals are facing on the mainland, Benq Hospital chief Chen I-san said the establishments will seek to provide "better service and a cheaper price" than state-run hospitals.

Chen Chin-wen, professor at the National Yang Ming University's Institute of Hospital and Health Care Administration, who conducted a survey on China's hospitals, noted that Taiwanese hospitals should enjoy major advantages in management, capital acquisition, and professionalism. Language and cultural background also put the Taiwanese in a leading position.

Despite these apparent advantages, not all of the JVs win approval. Taiwan's leading Chang Gung Hospital, which planned to establish operations in Beijing, Shanghai, Chengchou and Xiamen, was turned down. The hospital, which once had planned to invest some 200 million yuan to create a medical-care network with nursing schools and hospitals with more than 10,000 beds, is now waiting for its first hospital in Xiamen, which has 500 beds, to be completed.

In April 2005, after former KMT chairman Lien Chan visited Beijing for a summit with President Hu Jintao, China eased restrictions to allow Taiwanese doctors to practice in mainland hospitals for one year. Political analysts suggested the policy was intended to win hearts and minds of Taiwanese doctors, the majority of whom support Taiwan's ruling Democratic Progressive Party.

"Curing more patients would help doctors improve their professional skills," Dr Lee Yuan-the at Min-sheng said, explaining his support for sending Taiwanese doctors to mainland China. "Chinese doctors lack empathy with patients, whereas Taiwan is a leader in the medical service field. This is a chance for Taiwan to show its value to Chinese."

Ting-I Tsai is a Taipei-based freelance writer.

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing .)


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China debates medical reform, privatization (Aug 11, '04)

 
 



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