The Health Ministry yesterday said it had approved more than 30 foreign-backed joint-venture hospitals on the mainland, but it would not allow churches to set them up if they had a religious agenda.
Wu Mingjiang, director-general of the ministry's department of medical administration, said a State Council policy in 2000 - setting out guidelines for local and foreign partners - spurred the growth of hospital joint ventures.
The number of private hospitals has grown rapidly, but they still account for a small proportion of total medical care.
The largest private hospitals - in Xian and Zhejiang, with 300 to 500 beds - each involved 300 million yuan (HK$283 million) in local investment.
Mr Wu said that before the government clarified its stance on foreign investment, 'people feared policy change'.
'A hospital requires a big investment and a long pay-back period,' the official said.