For many decades, the Brazilian healthcare industry was held ineligible to receive foreign funding.
A first step towards modernization took place seventeen years ago when foreign capital was allowed to operate on an equal footing with domestic private health assistance and health care plans.
Although investments into hospitals were still barred under the aforementioned modernization, health plans benefiting from foreign funding did acquire hospitals and distorted the competition in prejudice of family held facilities not favored by an equal access to foreign leverage.
This long-lasting asymmetry has now been adjusted by Federal Law 13.097 in force as from January 20, 2015.
According to the new legislation, foreign investors are from now on entitled to directly either incorporate a local entity or to acquire shares of an existing legal entity for the purpose of providing and commercially exploiting hospitals and clinical services.
The opening of the Brazilian hospital market is not only an opportunity for domestic entities to restore and boost their activities, but it is also an unparalleled occasion for foreign investors to enter into a profitable underexploited market devoid of substantial competition and structure.
Bruno Mirabile is associate at Pacheco Neto Sanden Teisseire Law Firm.
