Shanghai's endeavor to build a diversified healthcare ecosystem by introducing high-quality international medical resources took another significant step with the recent opening of Parkway Medi-Centre Xintiandi, an ambulatory care center, part of IHH Healthcare, one of Asia's leading multinational healthcare services networks.

The new center, which represents an investment of nearly 100 million yuan ($14 million) and occupies an entire floor covering roughly 7,000 square meters in a shopping mall at the downtown Xintiandi commercial area, marks a new milestone in Shanghai's efforts to boost medical services for international patients.

Shanghai accommodates China's largest expatriate community and attracts one of the highest numbers of inbound travelers.

"Given that Shanghai is a dynamic metropolis teeming with tourists, it presents an excellent opportunity for us to boost medical tourism," said Prem Kumar Nair, group CEO of IHH Healthcare, whose operating entity on the Chinese mainland is Parkway Shanghai.

Nair said the ambulatory care center is designed to fill the gap between Parkway Shanghai's two clinics and a full-service hospital in the municipality.

"This facility is a key part of IHH Healthcare's global strategy, demonstrating our commitment to advancing an 'out-of-hospital' care model by bringing advanced day treatments and personalized outpatient services closer to where patients work and live, making high-quality professional care and advanced facilities more accessible," he said during the center's opening ceremony in Shanghai on Tuesday.

Bringing together an international, multilingual medical team from 14 countries, the facility supports direct billing with over 60 international insurance providers.

"We entered the Chinese market over two decades ago, drawn by the country's opening-up drive. The number of people being able to afford private healthcare has kept rising, and the influx of foreign enterprises into China brought a large number of expats. This prompted us to further optimize our services," Nair said. He added that one clinic located in Changning district's Gubei area is scheduled for an upgrade next year, which will result in the expansion of service offerings and introduction of a multinational physician team.

As Shanghai, and China as a whole, continue to strengthen policies to open up the healthcare sector — allowing full foreign ownership of medical institutions in some major cities since September 2024 — many international healthcare players said such positive regulatory shifts have reinforced their confidence in the market.

In January, Shanghai announced it would encourage wholly foreign-invested hospitals to be established in the municipality's key economic zones, regions where the biopharmaceutical industry gathers, and downtown districts with a high concentration of expat residents.

"The pilot program was initiated to deepen opening-up in the field of foreign-owned hospitals, enhance the diversity of healthcare services, and improve the city's business environment," said a city government document.

In March, DeltaHealth Hospital Shanghai received approval from the Shanghai Municipal Health Commission to operate as a wholly foreign-owned hospital, making it the first of its kind in the country to specialize in cardiovascular diseases, and filling a gap in specialized medical services provided by foreign investment in Shanghai.

And in March, Shanghai Renji Hospital and Singapore's Raffles Medical Group announced a collaboration to establish a two-way channel for medical resources, injecting momentum into Shanghai's ambition to become a hub for international medical tourism.

Under the cooperation, Raffles will introduce its international standard service system to Renji Hospital, providing comprehensive humanistic care, cross-cultural services, and specialized training in multilingual communication. Meanwhile, leveraging Raffles' cross-border network, the collaboration will export Renji Hospital's specialized medical technologies and establish a platform for promoting Chinese medical expertise globally.