Beijing Issues First Management Measures for Medical Collaboration Projects of Municipal Public Hospitals

It is reported that Beijing’s first administrative system for medical cooperation in public hospitals, the “Administrative Measures for Medical Cooperation Projects of Municipal Hospitals (Trial),” was recently issued. According to the Administrative Measures,Medical collaborations undertaken by Beijing municipal hospitals through trusteeship, technical cooperation, medical consortia, or other forms must adhere to the principle of public welfare. Without prior approval, hospitals are prohibited from unauthorized use of their institutional brand for collaborative purposes to seek private gain.

Cooperation Expands the Coverage of High-Quality Medical Resources

It is understood that medical cooperation generally encompasses five models: entrusted management, technical collaboration, medical consortia, franchising, and medical groups. According to a survey conducted by the Municipal Hospital Administration Bureau, as of April 2015, municipal hospitals had launched a total of 144 medical cooperation projects, revealing several common issues.For example, medical collaboration projects“Emphasizing Outcomes, De-emphasizing Process”; lack of unified management standards; non-standardized cooperation agreements; inadequate risk prevention and control, etc.。

Beijing has formulated and issued the "Administrative Measures for Medical Cooperation Projects of Municipal Hospitals (Trial)," which for the first time clearly stipulates the principles, basic requirements, management processes, revenue management, and supervision of medical cooperation. According to the Measures, municipal hospitals must adhere to the principle of public welfare when engaging in medical cooperation, focusing on safeguarding public health and improving the quality and level of medical services. Meanwhile, municipal hospitals are encouraged to prioritize cooperation with non-profit primary healthcare institutions; psychiatric, infectious disease, maternal and child health, traditional Chinese medicine, rehabilitation, and nursing hospitals; and medical institutions in the Tianjin-Hebei region.

A relevant official from the Municipal Hospital Administration stated that, in addition to strengthening management through medical collaborations with municipal hospitals, efforts will be made to promote the orderly transfer of high-quality medical resources to areas with weaker healthcare infrastructure, including suburban districts, new towns, regions surrounding Beijing, and parts of Tianjin and Hebei Province.

No More Than Three Municipal Hospitals to Be Fully Entrusted for Management

To ensure the quality of medical collaborations and prevent unregulated expansion, the Measures explicitly stipulate limits on the number and duration of collaborative projects. The implementation of medical collaborations will be incorporated into the performance evaluations of hospitals and their leadership teams.

Government-led regional medical consortia may adopt long-term cooperation models. The term for custodial cooperation shall, in principle, not exceed five years; technical cooperation shall not exceed three years; and the term of cooperation for medical groups shall be determined by all parties involved. Relevant officials from the Municipal Hospital Administration Bureau explained that time limits are set for custodial and technical cooperation to facilitate the evaluation of cooperative outcomes and inform decisions on whether to continue the partnership. Municipal hospitals may determine the number of cooperating institutions based on their own conditions; in principle, the number of medical institutions under overall custodianship shall not exceed three. The term and number of institutions for franchise-based cooperation shall be implemented in accordance with relevant regulations.

Municipal hospitals may charge technical cooperation fees for technical collaborations and entrustment management fees for trusteeship collaborations. Where the cooperating party displays a plaque bearing the name of a municipal hospital, the hospital may charge a brand usage fee.

Municipal hospitals are prohibited from unauthorized brand licensing.

In accordance with the provisions of the Measures, municipal hospitals shall not, without the approval of the Municipal Hospital Administration Bureau, unauthorizedly license or otherwise transfer the use of their brand names under the pretext of cooperation. Other medical institutions are also prohibited from using the brand names of municipal hospitals in any form without prior authorization.

The naming of plaques for collaborative partners must not mislead patients. Partners under trusteeship may display a plaque reading “Hospital Under Trusteeship of ×× Hospital (Municipal Hospital)”; technical collaboration partners may display a plaque reading “Technical Collaboration Hospital of ×× Hospital (Municipal Hospital)”; medical consortium partners may display a plaque reading “Member Unit of the Medical Consortium Affiliated with ×× Hospital (Municipal Hospital)”; and medical group partners may display a plaque reading “Member Unit of the Medical Group Affiliated with ×× Hospital (Municipal Hospital).”

For municipal hospitals whose collaboration partners are entire medical institutions, plaques may be hung at the entrance of the medical institution; if the collaboration partner is a specific department within a medical institution, plaques may only be hung at the entrance of that collaborating department. Institutions without a collaborative relationship, where physicians from municipal hospitals merely engage in multi-site practice, shall not display plaques bearing the name of the municipal hospital. When using the name of a municipal hospital to hang plaques and for external publicity, the font size must not exceed that of the collaborating hospital’s name.

According to the regulations, municipal hospitals are prohibited from engaging in medical collaborations with other institutions through equity contributions in the form of technology or capital.

# Medical Cooperation Models and Projects

1、Entrusted Management:Manage all or part of the assets of the municipal hospital management and operation entrusting party, and provide comprehensive medical management services to it on a paid basis.

Implementing Hospital:Beijing Hospital of Traditional Chinese Medicine has taken over the management of Shunyi District Hospital of Traditional Chinese Medicine and Yanqing District Hospital of Traditional Chinese Medicine, respectively; Beijing Children’s Hospital has taken over the management of Baoding Children’s Hospital and Shunyi District Maternal and Child Health Care Hospital; Beijing Friendship Hospital has taken over the management of Tongzhou District Xinhua Hospital. This year, Beijing Friendship Hospital will take over the management of Pinggu District Hospital.

2, Technical Cooperation:Municipal hospitals engage in paid or unpaid collaborations with other medical institutions regarding the use, guidance, support, and standardization of medical technologies, with the aim of enhancing their counterparts’ technical proficiency and service capabilities.

Implementing Hospitals:Beijing Obstetrics and Gynecology Hospital and the Children’s Hospital Affiliated to the Capital Institute of Pediatrics have established technical collaborations with Beijing Aiyuhua Women’s and Children’s Hospital, respectively; Peking University Cancer Hospital has established a technical collaboration with Nanjiao Cancer Hospital.

3- Medical Consortium:Centered on municipal hospitals, and in collaboration with other tertiary and secondary hospitals as well as primary healthcare institutions within the jurisdiction, establish a medical consortium that implements initial diagnosis at the primary level, tiered diagnosis and treatment, coordinated care between upper and lower levels, separate management of acute and chronic conditions, and integration of prevention and treatment.

Implementing Hospital:It is expected to exceed 50 this year.

4、Franchising:Public hospitals provide their intangible assets, such as brands, trademarks, and patents, as well as technology, services, and management expertise, to medical institutions established by social capital through franchising agreements. Within a specified period, these medical institutions deliver health services to the public using unified operational and managerial practices and service workflows, while paying franchising fees to the public hospitals.

Implementing Hospital:Anzhen Hospital Dongba International Hospital Franchise Project. This year, Beijing Friendship Hospital plans to launch its Shunyi franchise project.

5, Medical Group:Centered on municipal hospitals and linked by disciplines, technologies, and management, they form a consortium of considerable scale together with other medical institutions in Beijing or other regions.

Implementing Hospitals:Beijing Children’s Hospital Group, Youan Hospital Infectious Disease Alliance.

Source: Beijing Daily