I. Project organization

1. Project organization name: Health Bureau of Jiujiang City
2. Corporation representative: Liu Guofa
3. Project organization address: No. 7 Binhu road, Jiujiang City
4. Department responsible for the work: Jiujiang Municipal Government

II. Project basis and market analysis

1. It is planned to build a private hospital with certain scale in Jiujiang Development Zone through attracting social capital and to form multi-channel hospital building atmosphere with various forms co-existing and competing orderly in order to carry out Guiding View on Reform of Urban Medicine and Health System and Implementing View on Urban Medical Institution Classification Management of departments of the State Council Office for Restructuring the Economic Systems, Ministry of Health, Ministry of Finance and the State Planning Commission, further deepen health reform, vigorously promote the innovation of medical organization's system, mechanism and management, change the current medical service monopoly situation and introduce competition  mechanism.
2. According to the current distribution of health sources of Jiujiang city proper (six hospitals set up by government are all located in the city proper, while only one private hospital with small scale and weak capability is located in Jiujiang Development Zone that is near the city proper, which cannot meet the enhancing medical service requirements of the residents in the zone. So they have to seek treatment afar from the city proper.), the potential increase of medical consumption has large space.
3. The total population of Jiujiang is 4.6 million, among which 0.57 million are living in the city proper. Jiujiang is located in the junction of Jiangxi, Hubei, Hunan and Anhui provinces. It links the east and west by Yangtze River and the south and north by Beijing-Kowloon Railway and is one of the axes of the "east-to-west outstretched and south-to-north expanded" development strategy.According to the strategies of "surrounding Hewen Lake, constructing new Jiujiang" and building Jiujiang into a central city with 1 million population which are put forward by the municipal committee and the municipal government, surrounding places of Hewen Lake will be built as a new urban district. A new built private hospital can undertake the medical service of the increasing city service population and radiate the medical service of about 1 million residents in the surrounding provinces and cities.
4. On June 3, 2005, under the approval of the State Council, the "Export Processing District of Jiujiang City, Jiangxi Province" was set up, which is the only export processing district in Jiangxi Province.Enterprises from other provinces and other countries will gather in Jiujiang, so high level medical consumption requirement will have big space.

III. Project construction scale and content

To construct a comprehensive private hospital with high level, strong comprehensive service capability, advanced facilities and pleasant environment by social organization, business entity or natural person which bears civil liability independently and has capital and investment ability. Its standard should meet the requirements of state second level hospital or higher and the bed number should be at least 300.

IV. Project construction place

The investor can choose the project construction place in the east of Kanghong Dadao or the east bank of Hewen Lake under the premise of conforming to city plan and regional health plan. The land usage area of the project is about 50 mu..

V. Project construction conditions and favorable policies

1. The private hospital must be provided technicians, equipment, medical rooms and land in accordance with the requirements of state second level hospital or higher and be checked in accordance with Medical Organization Establishment Standard and related graded hospital standard of the Ministry of Health.
2. The private hospital can apply to be a profit-gaining medical organization or a non profit-gaining medical organization.
3. Innoxiously treat pollutant such as hospital sewage, pollutant, medical waste and garbage in accordance with related rules and requirements of environmental protection.Fire-fighting facilities should meet safety standard.
4. Favorable conditions:

• Providing the free right of choosing the private hospital site.Health administrative department provides consulting service and helps handle related matters in order to finish all procedures as soon as possible.
• The private hospital can recruit certain amount of health technicians and management staff in the city after the approval of municipal health administrative department.
• The promotion of the health technicians in the private hospital is the same as in the public hospital.
• In order to support the development of profit-gaining medical organization, in accordance with Notice on Tax Policy of Medical Health Organization of the Ministry of Finance and the State Administration of Taxation, the income which is directly used in improving medical health conditions of the profit-gaining medical organization will be given the following favorable treatment in three years since the business registration day: relief its sales tax on medical service income; relief its value added tax on captive use preparation; relief the building tax, urban land usage tax and vehicle and vessel usage tax on the self-using building, land and vehicle and vessel of the profit-gaining medical organization. After three years' tax exemption period, taxation will be resumed.
• The organization character can be chosen voluntarily by the private hospital but must get the check and approval from relevant health administrative department.
• Practice market coordination price on the medical service provided by profit-gaining private hospital; the medical organization fixes the price autonomously in accordance with the real service cost and market supply and demand situation; and conducts autonomous management and pays taxes according to regulations.The non profit-gaining private hospital carries out the medical service guiding price fixed by government and receives financial audit and supervision from medical administrative department.

VI. Project investment estimation
The total investment is about over RMB 50 million Yuan.

VII. Investment prospects

With the development of economic society, the requirement on multi-layer and multi-way medical service of people is further enhanced, and the government is attaching more and more importance on medical health industry and giving more and more support to it, so the development potentiality of medical service industry will further increase. Therefore investing on private hospital will have good social and economic benefits.

VIII. Cooperation modes
Exclusively construction by the investment party.

IX. Contact means
Contact person: Cai Jinshui
Tel: 0792-8226307
Postal code: 332000
E-mail：weigai@jiujiang.gov.cn