In order to help alleviate the burden on the over-taxed system of public hospitals, the Chief Executive of the Hong Kong Government (HKG) (a special administrative region within the P.R.C.), announced in October 2009 the set-aside of four sites to be used for the development of private hospitals. The four sites are Tai Po, Tseung Kwan-O, Tung Chung and Wong Chuk Hang, all of which are towns located away from the central business districts. The HKG is now inviting expressions of interest (EOI) from local and overseas parties to develop these sites into private hospitals. The development model (BOT, BOOT, etc.) and lease terms for the land have not yet been determined, which the HKG proposes to do, based, in part, on the proposals from private industry, local and foreign.
These new hospital projects should present considerable opportunities for U.S. hospital developers, suppliers of hospital architectural and other services (medical records, waste treatment, etc.), technologies and equipment.
Hong Kong is a prosperous, regional financial and trade center with a population of 7 million. It possesses a well-developed, high-quality system of public and private hospitals. Its 38 public hospitals provide a total of 27,555 beds, and its 12 private hospitals provide 3,438 beds.
Hong Kong’s public healthcare (hospital) system is a heavily subsidized one, with the HKG financially supporting 95% of the costs. As a result of an aging population and increasing overall government spending on healthcare, the HKG has been seeking alternatives to ease the burden on its public healthcare system. Hong Kong’s middle class is also willing to pay for quality medical service (and considerably less waiting time) offered by private hospitals.
In order to increase the overall capacity in the Hong Kong health care system, the government has reserved the following four sites for the development of private hospitals: Tai Po, Tseung Kwan-O, Tung Chung and Wong Chuk Hang. Upon completion in eight to ten years, these four private hospitals will together provide high-quality medical services via 1,500 to 2,000 beds, and will serve primarily the middle class. (Note: The hospitals should provide not less than a specified number of hospital beds, which will be determined based on the EOI submissions).
By Nghi Huynh and Olevia Yim