1 Land for hospitals to go at discount
Patsy Moy, SCMP 30 June 2009

The four pieces of land allocated for private hospitals may be released to bidders at a discount, Chief Executive Donald Tsang Yam- kuen said yesterday.
Speaking at a medical sector forum to discuss the city's health-care development, Tsang said the government plans to invite letters of interest by the end of this year.

The parcels of land for hospitals are in Wong Chuk Hang, Tai Po, Tseung Kwan O and Tung Chung.

He said when the government considers applications, it will also assess whether the arrangement would enhance the growth of the city's health-care business and medical infrastructure.

"We originally wanted to release the land at market price. But after further thought, we decided to offer a discount for hospital operators, provided they meet some reasonable conditions," Tsang said.

"The whole arrangement has to be handled in a fair manner. If we decide to offer a discount, then it should be offered to every operator. They will also be subject to additional conditions."

Tsang underscored that the major consideration in assessing applications is to ensure a fair deal for both the hospital operators and the community.

Hospital services will also have to meet public needs while assuring service quality, Tsang said.

Dean of the medical faculty of the Chinese University of Hong Kong Fok Tai- fai said the university is interested in the Tai Po lot because it is close to the campus.

Fok said the university has set up a special committee to study the feasibility of building a private hospital there in the hope of offering medical students another training center.

He said it was also possible the university might enter into an agreement with a business partner if it decided to go ahead with the new hospital plan.

"But running a private hospital is different. The services provided by a public hospital are usually very comprehensive. But a private hospital usually offers services selectively to make sure it will not suffer a loss," Fok said.

Private Hospitals Association chairman Alan Lau Kwok-lam said private hospitals should get a bigger discount on the land, considering the heavy investment needed to build and equip a hospital.

"It's not like running a hotel which can break even rapidly," Lau said.

"The financial return for a hospital is usually very slow"