China has a huge public medical system across the country, with a better coverage in urban areas than rural ones. As a matter of fact, China’s expense on healthcare per capita is among the lower band based on international comparison (See Graph from Chinatells). On the other hand, the growing middle class has a need to seek better quality of health care (See Article from China Daily). Such a need with lower starting base motivates a high growth of foreign funded private hospitals in first tier cities such as Shanghai and Beijing. There is no doubt that these hospitals charge a premium. For example, it costs about 5,000 yuan to deliver a baby in a public hospital. However it costs more than 50,000 yuan in a private one (10 times higher). Despite such a premium, there are still upper middle class people opting for such a choice as there are less waiting time in the Q and the mother gets better personalized service from the same doctor. As Chinese’s income continues to grow, there is a good potential for private hospitals to develop.