Opening of the Brazilian Heatlh Sector for Foreign Investment
23 de fevereiro de 2015
On January 20, 2015, a new Brazilian Law (No. 13.097/2015) was issued and it expressly authorizes the participation of foreign equity in the support and assistance activities under the healthcare scope. This new law amended the Law No. 8.080/1990, which regulates the Brazilian Health sector, and was highly restrictive regarding foreign investments in healthcare activities.
According to this new Law, the direct or indirect participation of foreign capital or foreign companies, including the control, in the health assistance is allowed on the following cases: (i) donations from international entities related to United Nations, technical cooperation organizations and financing and loan entities; (ii) legal entities intended to install, operate or explore hospitals activities in general (including philanthropic, specializes hospitals, polyclinics, general clinics and specialized clinics) and researches and actions under family planning scope; (iii) healthcare services maintained by companies, without profitable purposes, in order to take care of their employees and dependents, without any costs for the social security.
This was a matter under a great debate in the Brazilian judiciary system and also in the Brazilian Healthcare Authority (ANS). The issuance of this new law creates more comfort for foreign investor since it expressly allows the participation of foreign equity.