An aerial drone photo taken on Dec 16, 2024 shows an exterior view of the Perennial General Hospital Tianjin in North China's Tianjin municipality. [Photo/chinadaily.com]

China's first wholly foreign-owned tertiary general hospital, located in Tianjin, has obtained a license for medical services from the local health administration, demonstrating the nation's commitment to further opening-up its medical sector and addressing patients' diverse healthcare needs.

Perennial Holdings Private Limited, based in Singapore, announced on Monday in a news release that the Perennial General Hospital in Tianjin recently passed the Tianjin Health Commission's hospital inspection and received its license to operate as a medical institution.

The 500-bed tertiary general hospital, developed with a total investment of 1 billion yuan ($137.3 million), is expected to begin operations soon, the company stated. It is currently in negotiations with insurance companies to offer a range of policies to local patients. Tertiary hospitals represent the highest level in China's three-tier hospital system.

In September, China announced a policy allowing wholly foreign-owned hospitals to operate in several cities, including Beijing and Tianjin. Perennial Holdings, which already has a significant presence in China's medical care and eldercare sectors, swiftly aligned its healthcare business strategy with the policy to capitalize on the opportunity.

Located in Tianjin's Xiqing district, Perennial General Hospital Tianjin is located in the Perennial Tianjin South HSR International Healthcare and Business City, a multi-use complex that integrates eldercare, medical care and hospitality services.

"We highly commend China's open-door foreign investment policy in healthcare, which is rare globally," said Pua Seck Guan, executive chairman and CEO of Perennial Holdings.

"This forward-looking policy sends a strong positive signal to the international investment community, boosts confidence for investors in China's healthcare space, and promotes foreign investment and collaborations given the growth prospects in China. The policy also strengthens our commitment to our long-term strategy of building, owning and operating more hospitals within our integrated healthcare projects and healthcare-centric transit-oriented developments."

Perennial Holdings' hospital portfolio in China is expanding steadily. Beyond the 1,300 beds across its four facilities in Tianjin's complex, the group is developing over 3,000 more beds in healthcare-focused projects in Kunming in Yunnan province, Xi'an in Shaanxi province and Guangzhou in Guangdong province.

"Perennial's latest initiative marks a new era of deeper Chinese engagement with foreign nations, reflecting a shift toward high-end service sectors as part of the country's industrial upgrading efforts," said Zhang Ping, a professor at the School of Public Finance and Administration at the Tianjin University of Finance and Economics. "This development is expected to attract increased investment from multinational corporations.

"Multinationals are increasingly focusing on opportunities and resource allocation over political conflicts. Additionally, the new hospital will provide a wider range of specialized medical services for local residents, whose incomes have been rising in recent years."

She added that Perennial's presence highlights the improving investment environment in Tianjin, particularly in Xiqing district, which has seen a notable influx of pharmaceutical and high-end medical firms.

Pua further noted, "Perennial General Hospital Tianjin will attract more foreign patients seeking private medical treatments, driving growth in Tianjin's medical tourism industry."