Legal basis: People's Republic of China (PRC) Basic Medical Care and Health Promotion Law.
Thirty-sixth medical and health institutions at all levels should cooperate with each other to provide citizens with comprehensive and full-cycle medical and health services such as prevention, health care, treatment, nursing, rehabilitation and hospice care. People's governments at all levels take measures to support medical and health institutions to establish cooperation mechanisms with pension institutions, child welfare institutions and community organizations to provide safe and convenient medical and health services for the elderly, orphans and disabled children.
Thirty-seventh people's governments at or above the county level shall formulate and implement the planning of medical and health service system, scientifically allocate medical and health resources, and set up medical and health institutions to provide protection for citizens to obtain basic medical and health services. When setting up medical and health institutions, the government should comprehensively consider the population, economic and social development, medical and health resources, health risk factors, incidence rate, prevalence rate and first aid demand of the administrative region.
Article 38 To establish a medical institution, the following conditions shall be met, and the formalities for examination and approval or filing shall be handled in accordance with the relevant provisions of the state: (1) Having a name, organization and place that meet the requirements; (2) Having funds, facilities, equipment and medical and health personnel suitable for its business; (3) Having corresponding rules and regulations; (4) Being able to bear civil liability independently; (5) Other conditions stipulated by laws and administrative regulations. Medical institutions have obtained practice licenses according to law. It is forbidden to forge, alter, buy, sell, lease or lend the practice license of medical institutions. The specific conditions and configuration of various medical and health institutions at all levels shall conform to the standards of medical and health institutions formulated by the health authorities in the State Council.
Article 39 The State implements classified management of medical and health institutions. The medical and health service system adheres to non-profit medical and health institutions as the main body and profit-making medical and health institutions as the supplement. The government holds non-profit medical and health institutions, plays a leading role in basic medical and health undertakings, and ensures that basic medical and health services are fair and accessible. Medical and health institutions established or participated in by government funds or donated assets shall not be established as profit-making medical and health institutions. Medical and health institutions shall not lease or contract medical technology departments. Non-profit medical and health institutions shall not distribute or distribute income in disguised form to investors and organizers.