Concord Medical Services has received Chinese government approval to establish the Shanghai Concord Cancer Hospital, a premium cancer hospital, in Shanghai New Hongqiao International Medical Center.

The Shanghai Concord Cancer Hospital will have 400 beds and will feature advanced cancer diagnosis and treatment equipment and multidiscipline system.

Concord Medical claims that the hospital will become a leading cancer hospital in China and Asia.

Concord Medical has obtained the required Chinese government approval to develop the Shanghai Concord Cancer Hospital and the company is currently in the process of finalising the design and other pre-construction work.

Construction of the hospital is set to commence in the first half of 2015 and is expected to be completed in three years.

The Chinese government has recently issued several policies to encourage social capital into the healthcare services industry, including ‘Several Opinions to Accelerate the Social Investment in Healthcare Services’ and ‘The State Council’s Several Opinions to Promote the Development of the Healthcare Services Industry’.

Concord Medical chairman and CEO Dr Jianyu Yang noted that the establishment of a specialised, premium cancer hospital is an important component of the company’s development strategy and is consistent with the Chinese government policies encouraging private capital to enter the medical service industry.

"As the most economically developed area in China, Shanghai possesses the most abundant medical and human resources in China. It is a very significant milestone for Concord Medical to build a leading cancer hospital in Shanghai.

"During the process, we have received strong support and guidance from Shanghai New Hongqiao International Medical Center, which represent a new direction for China’s healthcare reform.

"It is a very significant milestone for Concord Medical to build a leading cancer hospital in Shanghai."

"After the construction of Shanghai Concord Cancer Hospital is completed, Concord Medical will become a leading hospital group, including cancer hospitals in Shanghai and Guangzhou and more than 140 existing cancer diagnosis and radiotherapy centres covering the whole country," Dr Yang added.

Shanghai New Hongqiao International Medical Center will focus on providing high-end medical services, attracting diversified investments from international and private sources.

The medical centre is supported by the Ministry of Health and approved by Shanghai Municipal People’s Government. The project will explore an integrated healthcare delivery model, including medical service, technical support, managerial collaboration and supply-chain extension.

Construction of the Shanghai New Hongqiao International Medical Center started in March 2012. The first phase is anticipated to be fully operational in 2015.