A public hospital in Beijing has agreed to allow a state-owned company to franchise their name and open a new hospital, local authorities said Saturday.

A file photo of Beijing Anzhen Hospital. [File Photo: gb.cri.cn]

Beijing Anzhen Hospital has signed a cooperative agreement with China Orient Asset Management Corporation to establish a comprehensive hospital, said Fang Laiying, chief of Beijing's Commission of Health and Family Planning.

Fang said it's the first time a public hospital in Beijing franchised in order to fund a new hospital.

The franchise means that China Orient Asset Management Corporation will be able to use Anzhen Hospital's name on the new branch, while funding the new hospital.

Beijing Anzhen Hospital will ensure the quality of medical services at the new hospital by dispatching doctors and management teams, Wei Yongxiang, head of Beijing Anzhen Hospital said. Orient Asset Management will pay for the service and management provided by the hospital.

The move is expected to reduce the government's financial burden,

Beijing began encouraging private investment into the public sector in 2013, encouraging social capital in transportation, parking facilities, medical and elderly facilities to reduce the financial burden on the government.

Local authorities will supervise the companies who are involved in public sectors and control the risks, said Fang.

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