Foreign-invested Hospitals Vie for Chinese Market in the Face of Growing Demand from Middle-Class

Wang Yue / Yicai

2016-12-07

(Yicai Global) Dec. 7 -- Increasing number of Chinese people seeking overseas medical services over the past two years have led to many foreign medical institutions to devise localization strategies for China.

Many well-known foreign-invested medical institutions begin to actively seek expansion opportunities in China, with some of them even posting profits.

“At the very beginning, almost all those patients we served were foreigners, whereas now we hope to reach out to more high-income Chinese people. In fact, Chinese clients in recent years have accounted for more than 50 percent of our business,” Pan Zhongying, the president of Beijing United Family Hospital and Clinics told Yicai Global.

“China is at a stage where it has increasing aging population as well as booming development of middle-classes. Therefore, we have noticed some profitable business models in the market. We are now confident about investing in China,” said Chen Shaodan, business development director of the international market department in Bupa Group, a UK-based international health group.

Joint-venture operation is the mainstream model for foreign-invested medical institutions’ business investments in China, with local investors who have substantial investments in the Chinese medical fields act as the key driver.

Seeing the sound development prospects of Beijing United Family Hospital and Clinics in China, Fosun Group won the controlling stake of Chindex Medical Ltd., the parent company of United Family via Fosun Pharma [SH:600196] in 2014. The United Family is now one of the several foreign-invested medical institutions with profits.