Shanghai Health and Family Planning Commission said yesterday it is encouraging health professionals at state-owned hospitals to work at private medical facilities, while also encouraging foreign investors to set up fully owned units at the Shanghai free trade zone.

Currently, only those from Hong Kong, Taiwan and Macau can set up solely invested medical facilities in certain provinces and cities on the mainland, while foreign investors need local partners to set up joint venture facilities.

But that may change as Shanghai authorities are encouraging foreign enterprises to set up hospitals and clinics in the zone with their own investments.

Xu Jianguang, the commission head, said it only needs 40 days for a foreign firm to set up a health unit in the zone.

"We will offer very efficient service to foreign investors," Xu said yesterday.

"The Shanghai free trade zone gives us a good opportunity to develop our health services by introducing facilities with world-leading management, technology and equipment. Such facilities can make up for the shortage in local medical industry."

Investors from Taiwan can set up wholly owned hospitals in Shanghai and in the provinces of Jiangsu, Fujian, Guangdong and Hainan, while those from Hong Kong and Macau can set up wholly owned hospitals in Shanghai and Chongqing as well as the provinces of Fujian, Guangdong and Hainan.

Xu said Shanghai will lift the restriction on health staff in state-owned hospitals and will even support them to work in private hospitals.

Meanwhile, to make better use of local health resources, Shanghai is promoting the services of general physicians for basic health service and consultation.

The GPs are involved in the transfer of patients with serious condition to hospitals.

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