Medical care institutions with wards for the inpatient care of patients shall be referred to as hospitals; those with only out-patient facilities shall be referred to as clinics; and those which conduct medical care practices not for the purpose of directly treating patients shall be referred to as other medical care institutions.
Clinics referred to in the preceding Paragraph may set up no more than nine beds for observation. Gynecology clinics shall set up no more than ten obstetric beds, according to medical practice necessity.
The classification of medical care institutions, as well as the service facilities, personnel, and establishment standards of each type of medical care institutions shall be determined by the central competent authority.

Two or more clinics may establish a joint clinic at the same location, and shall conduct respective clinical practices with the use of common facilities. The regulations regarding the management of joint clinics shall be established by the central competent health authority.

The establishment or expansion of hospitals may apply for building license in accordance with related regulations under the Building Code after approval from the competent authority; the same applies to the establishment of a branch of a hospital.With respect to the approval of the establishment or expansion of hospitals, the applicant’s qualifications, review procedure and criteria, restrictions, revocation, repeal and other matters of compliance shall be set forth by the central competent authority.

To commence practice, medical institutions shall apply to the municipal or county(city) competent authority of the locality for approval and registration, and commence practice only after a practice is issued.
The applicant qualifications, application procedures, documents, and other observances for the opening practice application referred to in the preceding Paragraph shall be determined by the central competent authority.

Where the private medical care institutions are above a certain scale announced By the central competent authority, said private medical care institutions shall be re-established as a medical juridical person.

The use and change of the names of medical care institutions shall be restricted to those approved by the respective municipal or county(city) competent authority. The principles regarding the use and change of said names shall be determined by the central competent authority.
Non-medical care institutions may not use names of, or similar to, medical care institutions.

One supervising physician shall be established at each medical care institution, and shall be responsible for the practice of medicine at said medical care institution. The applicant shall be the supervising physician of a private medical care institution.
The supervising physician referred to in the preceding Paragraph shall be limited to those who has received at least two years of medical training at hospitals or clinics designated by the central competent authority, and have received documents of certification.

The supervising physician shall appoint a physician with supervising physician qualifications to act for, in the case that he/she is not able to conduct practice. In the case that the activity period exceeds 45days, the original supervising physician shall notify the original license issuing authority.
The acting period referred to in the preceding Paragraph shall not exceed one year.

Medical care institutions shall display the practice license, clinic hours, and other clinic items in a conspicuous place.

Standards for medical fees charged by the medical care institution shall be determined by the municipal or county(city)competent authority.

Receipts shall be made by medical care institutions for medical fees charged, which shall clearly state the item(s)and fee(s).
Medical fees charged by medical care institutions shall not violate or exceed the standard for the fees, nor shall medical institutions charge for items without authorization.

When the practice is suspended or terminated, the medical care institution shall notify the original license issuing authority for record purposes within 30 days.
Duration of the suspension mentioned in the preceding paragraph shall be limited to one year; for suspension over one year, termination of practice shall be filed within 30 days from the date when the one-year deadline is over.
If a medical care institution fails to file for termination of practice as provided in the preceding paragraph, the competent authority may terminate its practice at its own discretion.
Provisions regarding the establishment and commencement of practice shall apply mutatis mutandis to the relocation of medical care institutions.
Provisions regarding the commencement of practice shall apply mutatis mutandis to the resumption of practice for medical care institutions.

Medical care institutions shall be clean and orderly, and shall not impede public health and safety.
For the purpose of protecting patients’ safety when they seek medical care, no person shall hinder medical practices by means of violence, coercion, intimidation, public insults or other illegal methods.
Medical care institutions shall undertake necessary measures to ensure the safety of medical personnel when they practice medicine.
The police authority shall eliminate or restrain persons who violate the provisions of Paragraph 2. In case that criminal liabilities have arisen, such violations shall be referred to the competent juridical authority for investigation purposes.
The central competent authority shall establish a reporting mechanism, and shall announce, on a regular basis, the details of any events set forth in Paragraph 2 when they occur in a medical care institution as well as the final results.

The architectural structure and facilities of hospitals shall have fire prevention, escape routes, and other necessary precautions. In addition, hospitals shall also establish emergency response measures.
The emergency response measures referred to in the preceding Paragraph and the regulations regarding their inspection shall be determined by the central competent authority.

Medical care institutions shall submit reports in accordance with the provisions of the law or with the notification of the competent authority, and shall accept inspections or data collections conducted by the competent authority regarding personnel, facilities, medical fees, medical practices, health and safety, and medical records.

In case of serious disasters, medical care institutions shall obey the orders and directions of the competent authority in providing medical care services and assisting in public health, which shall not be avoided, obstructed, or refused.
The competent authority shall provide compensation after consideration for the fees or costs incurred by medical care institutions which provide services or assistance according to the preceding paragraph.

The central competent authority shall conduct accreditation of hospitals. The municipal or county(city)competent authority shall conduct periodical assessment of medical care institutions within the respective jurisdiction.

Public hospitals may invite local social personages to establish an management advisory committee, for the purpose of providing suggestions to improve regional medical care services.
Public hospitals shall allot at least ten percent of the annual medical income after expenses to conduct research and development, professional training, health education, medical relief, community medical care services, and other community services.