With the continuous reform of its medical and healthcare system, China is cautiously encouraging private investors to participate in the management of both public and private hospitals. As a management method that could optimize the allocation of medical resources between hospital founders and operators while in the meantime generating reasonable investment returns for hospital investors, hospital entrustment arrangement has become increasingly attractive to more and more private investors who are seek investment opportunities in the area of PRC non-profit private hospitals. In this reference memorandum, we have briefly analyzed and reviewed a few major PRC legal issues related to the entrustment arrangements for non-profit private hospitals based on applicable PRC law, the latest market practice and our past experience. (Full text in Chinese only)