The Home Of Harmony In The Post - Fossing Era: New Sites Are Being Opened Up And Capitalized Operations Are Accelerating, And Non-Public Medical Care Still Faces Multiple Problems.

After several months of breaking up with Fosun medicine and joining hands with the "new home" new world, the representative of the high end non-public medical care unit in the United States officially opened the new site of Puxi hospital in Shanghai.

At the opening ceremony in December 4th, Chen Qiyu, founder and Roberta Lipson of harmony home medical company, chairman and co founder Liang Jinsong of "new business" new wind world group and Chen Qiyu, chairman Chen Qiyu of "old family", were all present.

In 2004, Shanghai's harmony Puxi hospital opened and became the first Sino foreign joint venture hospital in Shanghai. The new site was moved to Ping Tang Road. It was put into operation in October this year. It covers an area of 19 thousand square meters, three times the previous one, and is 1 kilometers from its original site. In terms of harmony, the new site has been upgraded in accordance with the International Joint Medical Committee (JCI) standard and hardware and software.

Since the first hospital opened in Beijing in 1997, Harmony House has opened hospitals and clinics in Shanghai, Tianjin, Guangzhou, Qingdao, Hangzhou and other places in 22 years, and also made the brand of Harmony House the "spokesperson" of high-end private medical care.

In July 30th of this year, the investment platform of Liang Jinsong, Hongkong's finance minister, announced at the same time that the new wind and Tianyu medicine also announced that the new wind world would spend 9 billion 900 million yuan to buy the Harmony House to TPG, Fosun medicine and other existing shareholders. After the acquisition, it will become one of the largest publicly listed private medical service providers in China.

From the Sino US mutual benefit, Fuxing medicine to the new wind, the harmonious family has gone through different stages of capitalization operation. After the completion of the transaction, the new wind world will be renamed the "Xinfeng medical group" and will continue trading in the New York Stock Exchange with the new stock code "NFH". This is also considered as a measure of "backdoor" and "re landing" of the US stock market.

In recent years, non-public health care has been constantly pursued by the policy of "Dongfeng". But even if the brand is strong like a harmonious home, it still faces different difficulties in terms of talent, medical insurance and taxation.

Layout "flagship"

According to the merger agreement issued by the two sides, the value of the new wind and field business is about $1 billion 440 million after the completion of the transaction. "The future plan will achieve sustained growth through endogenous growth and strategic acquisitions."

The existing management and Fosun medicine will keep part of the shareholding and hold about 12% of the shares. Liang Jinsong will be the chairman of the board of directors of the new company. Chen Qiyu will serve as co chairman. Li Bijing will serve as chief executive. Wu Qinan, chief executive officer of new wind Tianyu company, will lead the Executive Committee of the new board of directors.

"China's medical market is facing a golden opportunity. Now China's population aging is more serious than before." In December 4th, Liang Jinsong told an economic reporter in twenty-first Century, "nearly 7% of China's GDP has been placed on health care, but the supply of medical services is still inadequate and unbalanced. 95% of the medical expenses are concentrated in large hospitals, overcrowding, and there is no doubt about good medical needs.

The new wind and Tianyu also look at the brand of Harmony House. "Medical brand and word-of-mouth are very important. We also see a lot of other foreign medical treatments coming in. Whether it can take root in China or whether it is acclimatized or not is all a problem. Liang Jinsong said, "turning the home of harmony into our flagship" is very helpful for our layout in the whole year of age. It can also attract overseas investors. "

Zhang Qiang, co-founder of the Doctor Zhang Qiang, who has worked with the harmony family for many years, was interviewed by an economic reporter in December 4th. He said: "cooperation with the new wind and the sky" is a good thing for the harmonious family. The role of a harmonious home is not good. If it is not duplicated, it will have limitations on the medical influence of the whole China. It needs some support from the capital and copies its mode to more places. In this sense, it is positive in this sense. "

From Fuxing medicine to the new wind world, harmony home is an important part of the high-end medical field, but the high end, high price and high net worth people's harmonious family still faces the problem of not yet profitable.

According to the announcement of Fuxing medicine at that time, through the audit of Ernst & young, as of December 31, 2018, the total assets of the company were 5 billion 410 million yuan, the total liabilities amounted to 2 billion 100 million yuan, the annual revenue of 2 billion 50 million yuan was 2018 yuan, the net profit was -1.7 billion yuan, as of May 31, 2019, the total liabilities amounted to 3 billion 765 million yuan, and the 1 to May 2019 revenue was 990 million yuan, with a net profit of -8900 million yuan.

For the future whether there will be profit pressure after listing, Liang Jinsong told reporters on twenty-first Century economic report, "profit depends on the team, we see the Li Bijing team is very good. In this respect, we are very optimistic.

In the press release, Xin Feng Tianyu said that the annual growth rate of private hospitals in China from 2013 to 2017 was 25%. Based on strong industry growth and its leading position in the high-end private medical sector, the existing core medical facilities of harmony home medical complex increased by 35.9% in EBITDA from 2015 to 2018. Xin Feng Tianyu believes that due to the recent significant scale expansion, he expects to achieve a compound annual growth of about 18% in the next five years, and the composite growth of EBITDA will reach about 50% after adjustment.

Wu Qinan added that the two most mature hospitals in Beijing are Chaoyang and Puxi, Shanghai. "Two accounts for 20% of the total capacity. From a profit point of view, it will generate nearly 5 hundred million this year. The remaining 80% of the capacity has basically completed investment and climbing period, and profit contribution will begin to appear in the next few years.

The new wind business has also adopted a new business model to alleviate the pressure of profit. As part of the transaction, he will get the exclusive right to operate the hospital assets of Xin Feng Tian Group, which is 64 thousand square meters in the center of Shenzhen. Wu Qinan said that the hospital will adopt a management contract mode, which is invested by third parties in heavy assets, and the home is operated by collecting management fees, which is divided into profits, brand fees and construction consultant fees. "The new mode is much less stressful for the operation of the company. The listed company also has a relatively stable profit growth. Meanwhile, the listed company has the right to purchase. When the hospital is mature, it can buy the hospital back."

Differentiated competition

Li Bijing, the founder of the house of harmony, has repeatedly mentioned that when she wanted to open the first foreign hospital in Beijing, she ran a lot of government departments and was "approved by 180 official seals".

In December 4th, Li Bijing told an economic reporter in twenty-first Century that "from the point of view of the number of official seals, there is no reduction." But the attitude of the seal is much better. With the change of the national policy for non-public medical care, it is very helpful for us.

The non-public medical care has entered a new stage under the promotion of many years' policies. Standing at the turning point of the new health care reform in the past ten years, there are great opportunities in the new round of development of non-public medical care, and at the same time face many challenges such as talent, management, capital and so on.

By the end of 2018, the number of social medical institutions reached 459 thousand, accounting for 46%, and the number of social run hospitals reached 21 thousand, accounting for 63.5%.

In June this year, the ten ministries and commissions of the national Wei Jian Commission, the NDRC and the Ministry of science and technology jointly issued the notice on promoting the continuous healthy and standardized development of social medical institutions. (No. 42, No. 2019 of the National Health Service) clearly pointed out that the social medical institutions (hereinafter referred to as the social medical institutions) are an important part of China's medical and health service system. In recent years, the government has introduced a series of policies and measures to deepen reform and improve the medical environment. However, the problem of policy implementation is not in place, supervision is not perfect, and the overall trust of society is not high.

Even standing on the "first tier", Li Bijing also talked about the same problem. "Many new policies, spirits and specific implementation rules have not yet come out. For example, the practice of doctors has been practiced for more than 5 years, but it is still difficult to achieve in many cities, including Shanghai. It is hard to say whether foreign doctors are included. "

Talent is the universal difficulty faced by non-public medical care. Zhang Qiang mentioned another challenge facing the harmonious family. "There are both Chinese and foreign service objects, so doctors are not only good at medical technology, good foreign languages, but also strong in service concept, which is a challenge to medical students in public hospitals in China. The threshold is relatively high, and the source of talent will be subject to certain restrictions."

Another challenge is medical insurance and commercial insurance. Li Bijing said, "non-public hospitals have different levels of service in terms of price. Whether social security can support these high-end medical care is not clear. At present, "Harmony Home" has access to local medical insurance in Tianjin and Qingdao. We have been looking forward to joining Shanghai and Beijing.

In terms of commercial insurance, Chen Qiyu mentioned that the growth of China's commercial medical insurance in 2018 reached 40%, which is a positive incentive for non-public health care such as harmony home.

However, Zhang Qiang also said that in the field of commercial insurance, he also faced competitors' "grab cake": "in the commercial insurance field, Harmony House has always been the first choice, and few competitors. But now that the medical policy has been liberalized, a large number of international hospitals have been built and increased competition. If the growth of commercial insurance is faster than that of hospital construction, the market is still very large. "

In addition, whether it is a harmonious family or other non-public medical care, differentiated competition is an inevitable choice.

Zhang Qiang believes that the harmony family hospital is one of the best examples of differentiated competition. "Harmony Home" has always been the top brand in gynecology and obstetrics. At the beginning, from the point of doing "children born in China by foreigners", other non-public health care can not be done, and public hospitals can not do well. But obstetrics is characterized by greater service attributes than medical attributes, so it is now working in other areas such as minimally invasive surgery, Department of orthopedics, urology and other fields to seek differentiated competition. In the service of different types of patients, the integration of international medical services and local doctors is transforming. "