The Chinese Medicine Hospital is built and owned by the Government. It is a government project operated under a public-private partnership model with HKBU as the Contractor and the HKBU Chinese Medicine Hospital Company Limited as the Operator.

The site reserved for the Chinese medicine hospital (CMH) is located in Tseung Kwan O, covering an area of approximately 42 900 square metres bounded by Pak Shing Kok Road, the Fire and Ambulance Services Academy, the Disciplined Services Quarters for the Fire Services Department and the proposed Government Chinese Medicines Testing Institute. Surrounding by greeneries, the CMH will have access to an unobstructed open view.