Restrictions on Foreign Investment in Brazilian Hospitals Have Now Been Lifted
On January 20, 2015 Law No. 13,097/2015 was published in the Official Gazette with immediate effect. This law amends Law No. 8,080/1990, which regulates the organization and provision of health services in Brazil. Pursuant to the new law, foreign entities will now be entitled to directly or indirectly own equity interest (and control) in Brazilian entities providing health assistance, which was expressly prohibited by the old version of the law.
From now on, in addition to investing in private health insurance companies, which was already permitted by Law No. 9,656/98, foreign entities will be entitled to invest and own equity interest (and control) hospitals located in Brazil, whether they are general or specialized hospitals, profit or not, with no restriction on the value or ownership.
The measure aims to attract new foreign investment into the health sector, which accounts for approximately 10% of Brazilian GDP and which requires additional investment in order to improve its infrastructure and quality of the health services provided.
Foreign entities have already been investing massively in the private health insurance sector. In 2012, U.S – based United Health acquired 90% of Amil, the largest Brazilian private health operator, for US$ 4.3 billion.
Foreign investment in the Brazilian health sector should also benefit the local population, making new technologies, innovation and better governance practices available, improving the quality of the provision of health services to the consumer.
Further information on this matter and others involving foreign investment in Brazil can be obtaining by writing to[email protected]