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The mental healthcare sector in China expanded significantly in the past decade. The number of psychiatric hospitals in the country surpassed in 2021, with.the private sector accounting for the highest growth.

A flourishing market

In 2010, among the *** psychiatric hospitals in China, more than ** percent were government-owned. Between 2010 and 2021, the number of government-owned facilities grew from *** to ***, while the number of non-government psychiatric hospitals increased ** times, exceeding in 2020. The dramatic growth of private mental healthcare facilities happened at the same pace as the expansion of mental health services in China’s vast countryside. With the rise of small to medium-size private mental healthcare facilities, the inequality of mental healthcare services between China’s prosperous urban centers and rural areas is mitigated. Larger private hospital chains are also gaining ground, with listed companies such as the Wenzhou Kangning Hospital Group profiting from the boom of the sector.

Concerns over patients’ rights

The quality of care in private psychiatric hospitals can vary significantly, depending on the location and staff of the facilities. As mental hospitals have the power to limit the personal freedom of patients, if private profit-seeking institutions should have such power is an issue of concern. The 2013 Mental Health Act made clear that with the exception of patients with violent records, the hospitalizations of mental disorder patients should observe the principle of free will. However, in practice, as mentally impaired patients are often deemed legally incompetent, the discharge of inpatients is often impossible without the approval of the patients’ legal guardians. This resulted in the long average length of stays of patients in hospitals, with some patients’ stay exceeding 20 years.