Nutshell Series - 5 Minutes Read to Hong Kong's New Private Healthcare Facilities Ordinance (“PHFO”)

The Private Healthcare Facilities Ordinance (PHFO), Cap. 633, introduces a new regulatory regime for private healthcare facilities (“PHFs”) in Hong Kong. If you operate or work in a clinic, hospital, or health service establishment, the new law brings important changes you must comply with.

Key Highlights

1. Why Does This Concern Me?

If you are a registered medical practitioner or dentist, the new law directly affects your practice. Under the PHFO, any premises where you or your colleagues provide medical or dental services — including hospitals, day procedure centres (“DPCs”), clinics, and health services establishments — must obtain a relevant licence or, in some cases, a letter of exemption to operate legally. This means that whether you run a solo practice, a group clinic, or work in any private healthcare facility, you must ensure that your premises comply with the new licensing requirements. Failure to comply could result in severe penalties and interruption to your practice.

2. I Run a Small Clinic - Does This Concern Me Too?

Yes, the new law applies to small clinics as well. If your clinic is operated solely by up to five registered medical or dental practitioners, whether as individuals, a partnership, or a company, you may qualify as a Small Practice Clinic (“SPC”). Instead of a full licence, you can apply for a letter of exemption. 

However, strict rules apply: you cannot employ additional registered practitioners except for temporary locum cover, and all partners or directors must be registered medical or dental practitioners. A sole proprietorship clinic may have only one registered doctor or dentist as the operator. For partnerships or companies, there can be up to five registered doctors or dentists as partners or directors, and they must be the same individuals listed on the Companies Registry.

3. What about Locus Doctors? How Are They Counted? 

SPCs are allowed to use locum doctors or dentists for temporary cover, but only within strict limits: each operator can use a locum for up to 60 days per year, and the total locum days for all partners or directors cannot exceed 180 days per year for partnership or companies. Locums may only provide cover during the main operator's absence and cannot work alongside, or at the same time as, the doctor or dentist they are covering. Part-time employment of other registered practitioners is not permitted — only locum arrangements are allowed.

4. What About Doctors Who Provide Telemedicine at My Clinic? How Are They Counted?

The mode of service delivery, including telemedicine, does not change the requirement for registration or exemption if your clinic meets the definition of a Private Healthcare Facility under the law. Doctors or dentists providing telemedicine services are considered as providing medical services at the clinic and therefore count towards the headcount limit for clinics and SPCs. For example, if your SPC has 3 practitioners, and one of them provides services via telemedicine, all 3 are counted towards the SPC’s headcount. When applying for a licence or letter of exemption, you must disclose all practitioners (including those delivering care through telemedicine) to ensure compliance with the relevant limits and requirements.

The Medical Council of Hong Kong (“MCHK”) has issued detailed guidelines on telemedicine best practices in October 2019. All doctors providing telemedicine services are strongly advised to review these guidelines to ensure compliance with professional standards.

5. How many Clinics can a Doctor Work For Simultaneously?

A registered doctor or dentist may apply for and be granted an exemption for up to 3 SPCs at the same time. This means each doctor or dentist can operate as an SPC operator in no more than 3 exempted SPCs concurrently. There is no specific limit on the number of non-SPC entity a doctor can work for, but doctors must still ensure they meet their professional obligations under the MCHK’s Code of Conduct and are able to provide safe, quality care at all locations.

6. What About Other Delivery of Services at My Clinic, such as Beauty Services, Physiotherapy, or even Chinese Medicine?

Services provided by Chinese medicine practitioners and allied health professionals (such as physiotherapists) are not themselves regulated by the PHFO. However, if these services are offered within the same premises as those used by registered medical practitioners or dentists (i.e., your clinic is licensed or exempted under the PHFO), then these non-medical services will also be covered by the same licence or exemption. In this case, the entire premises, including areas where Chinese medicine, physiotherapy, or beauty services are provided, fall under PHFO regulation and inspection, even though the PHFO itself does not regulate those professions’ specific practices.

If a premises is used only by Chinese medicine practitioners or allied health professionals (with no registered medical practitioners or dentists practising there), the PHFO does not apply, and those practitioners remain subject only to their respective laws and codes of practice.

In summary:

• If you share your clinic space with Chinese medicine practitioners or allied health professionals, and you are applying for a PHFO licence or exemption (because registered doctors or dentists practise there), the entire premises will be covered under the PHFO.
• If only Chinese medicine or allied health services are provided (no medical practitioners or dentists), the PHFO does not apply.

7. Can my clinic share premises or an entrance with other businesses under the PHFO?

Any PHF covered by a licence or exemption must be:

• A distinct and exclusive unit that is able to perform its functions independently;
• Physically separated from any premises serving a purpose not reasonably incidental to the type of facility for which the licence or exemption is issued; and
• Equipped with a direct and separate entrance that is not shared with other premises.

What this means is - if you wish to operate a clinic (including an SPC), the area where regulated medical services are provided must be clearly separated, physically and functionally, from areas used for unrelated services (such as beauty, retail, or standalone allied health practices). The clinic must have its own entrance, separate from other premises, except during the transitional phase when a provisional licence is in force.

However, there are some exceptional cases where entrances may be shared, but this is allowed only for clinics operating under a provisional licence. The Department of Health (DH) will consider each situation under section 138 of the PHFO, and the following conditions must be satisfied:

1. The other premises are also managed or controlled by the licensee.
2. Clinic signage is displayed only at, or in the immediate vicinity of, the direct entrance to the clinic.
3. The shared passage area is used solely for passage or waiting, and not for any other purpose.
4. The passage area is kept clear of obstructions that could block access to the clinic.
5. Access to the other premises does not require passing through the clinic.

8. Who is Responsible for the Clinic?

Under the PHFO, licensed clinics, DPCs, and hospitals are required to appoint a Chief Medical Executive (“CME”) who is responsible for the overall management and compliance of the facility. However, SPCs with a valid letter of exemption are not required to appoint a CME, nor do they need to establish the additional governance structures that are mandatory for licensed facilities. Instead, all operators of the SPC, who must be registered medical practitioners or dentists, are collectively responsible for the clinic’s operation and compliance with PHFO.

9. What are the Responsibilities of a CME?

The CME of a licensed clinic is responsible for ensuring the clinic’s compliance with the requirements of the PHFO, the licence and its conditions, the Code of Practice issued by the MCHK, and any relevant clinic code of practice. The CME oversees day-to-day administration, adopts and implements rules, policies, and procedures concerning healthcare services, and must be fit and proper to carry out these duties. While the CME manages clinical operations and compliance, the licensee remains wholly responsible for the clinic.

10. When Will This Affect Me?

Licence registration under the PHFO is being implemented in phases. Registration for hospitals and day procedure centres has already been completed. The next key date is 13 October 2025, when registration opens for SPCs and clinics. While the Department of Health (“DH”) has not yet announced the deadline for licence registration before penalties apply, previous records showed a regular period of around 1.5 years as transition phase. Based on this, the penalty period may begin around April 2027, but the exact final registration date will be confirmed and announced by DH.

11. When Do I Have to Renew The Clinic’s License?

Hospital licences are valid for 2 years, DPC licences for 3 years, and clinic licences for 5 years. All of these licences must be renewed before expiry for continued legal operation; operators need to reapply and meet all current requirements at the time of renewal.

SPCs that are granted a letter of exemption do not need to renew their exemption, unless the clinic relocates, ceases to meet SPC criteria, or the exemption is revoked by the Director of Health. As long as an SPC continues to qualify under the regulations, its exemption remains valid indefinitely.

12. What do I Need to Do to Apply for a License for my Clinic or an Exemption Letter?

The application process will open on October 13, 2025, and it can be done in person or online, though the latter is encouraged for efficiency. Clinic license application takes time. It is important to start preparing now because the application process can be time-consuming and requires gathering various documents and setting up accounts. Early preparation will help ensure your clinic can apply promptly when the process opens and avoid delays in licensing or exemption. 

Before Application Opens (from now until October 13, 2025), prepare the following:

• Proof of Clinic Address:
  
  • Copy of Business Registration (“BR”) certificate
  • Recent utility bill or invoice showing clinic address
• Contact Information
  
  • Valid email address
  • Operator/Partner Details
• E-Licensing Account (online applications)
  
  • Apply for an e-licensing account
• iAM Smart+ Account: (online applications)
  
  • All online applicants must have an iAM Smart+ account for digital signing and online submission

If you wish to submit your application in person, the main differences are that you will need to prepare hard copies of the documents stated above and show the actual HKID cards of all partners or operators when you visit the Department of Health office in Wan Chai for identity verification.

Summary

This article is designed to keep doctors informed about the latest legislation and implementation details for the licensing and exemption of clinics under the new PHFO. Our goal is to help you stay up to date with the most recent regulatory requirements and ensure a smooth transition as these new rules come into effect. Please note that the information provided here reflects the information provided by the Department of Health as of 27 June 2025. For the most current updates and resources, please visit the Office for Regulation of Private Healthcare Facilities website at www.orphf.gov.hk. If you have any questions or need further clarification on the law, the Department of Health and your legal representative are always available to support you.

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