Private hospital custody is legal.

Illegal! It's called trusteeship, but it's actually contracting! The state does not expressly stipulate that it cannot be hosted, nor can it be hosted without the support of documents. However, according to Article 52 of the Contract Law of People's Republic of China (PRC), the contract is invalid under any of the following circumstances:

(1) One party enters into a contract by means of fraud or coercion, which harms the interests of the state;

(2) Malicious collusion that harms the interests of the state, the collective or a third party;

(3) Covering up illegal purposes in a legal form;

(4) damaging the public interest;

(5) Violating the mandatory provisions of laws and administrative regulations.

Article 13 of the Regulations on the Administration of Medical Institutions stipulates that "the practice license of medical institutions shall not be forged, altered, traded, transferred or lent". Article 55 of the Detailed Rules for the Implementation of the Regulations on the Administration of Medical Institutions of the Ministry of Health stipulates that "the name of a medical institution shall not be bought, sold or lent, and the name of a medical institution shall not be transferred without the permission of the registration authority". Article 79 stipulates that "anyone who transfers, lends or sells a practice license" shall be fined and his illegal income shall be confiscated.

Hospital contracting operation will harm the public interest and the interests of patients.