In the 8-trillion-yuan nursing industry, medical rehabilitation service market has never been so eye-catching. According to journalist, Wind statistics shows that, by the end of June 23, the company have made 156 announcement on pharmaceutical and medical mergers and acquisitions since this year. There has been a notable increase in the transactions for medical rehabilitation equipment and services which has mounted to 56, with 25 of them closed for a total of 1.455 billion yuan and 31 unclosed totaling 5.559 billion yuan. According to Qingke Statistics, VC/PE have invested in 210 medical rehabilitation service companies in 2013, hitting the record highs since 2008.
In fact, since October 2014, the government have been issuing policies that facilitate the development of health rehabilitation industry, such as “Several Policies and Measures for Promoting the Health Care Service Industry” (No. 4 Document), “Several Policies and Measures for Promoting the Accelerated Development of Private Hospital”, “Several Policies and Measures for Changing the Unreasonable Regulation and Accelerating the Implementation of the Equal Treatment of the Private Medical Institutions” and other policies to continuously encouraging the social capital to participate in hospital operation.
SAT Capital Partner, Managing partner Aaron Xue said that “With government’s help from policies, capital in various forms started exploiting the opportunities in health service industry. Most recently, one example of that is the transformation from pharmaceutical industry to medical services industry by a “very ambitious company”, Pkucare, which strikes a chord with the whole capital market. In June 17, Pkucare, suspended more than two months, announced its important restructuring plan to to buy 100% stake of Shenzhen Medical Technology Co. Ltd at 1.4 billion yuan. After the resumption of trading, the stock of Pkucare immediately hit limit up. After establishing Peking University Health Rehabilitation Hospital, the flagship store, the SAT Capital Partner, Aaron Xue, and the Dean of the Peking University Medical Rehabilitation Hospital, Ling Feng, revealed that, in the next five years, the company will cooperate with investment institutions and the relative government departments through brand output and chain operation management to set up eight to ten rehabilitation institutions that are in line with the standard of Peking University Health Rehabilitation Hospital, with more that 2000 available beds.
In March 9 this year, Peking University Health Rehabilitation Hospital Co. Ltd. signed a cooperation agreement with Guangdong Zhaoqing Management Committee to build the Zhaoqing Branch of Peking University Health Rehabilitation Hospital.
The management team of Peking University Health Rehabilitation Hospital also have advanced rehabilitation ideas in the domestic market. The “real patient-oriented principle” is incarnated everywhere by functional area planning, discipline construction, medical procedures and hospital environment. And more importantly, it attaches much importance to early rehabilitation, which makes them one of the few rehabilitation hospitals that are equipped with professional ICU wards and medical teams in the world. Those advanced concepts and the strong executive force play an important role in building confidence for investors towards the good performance of the management team in the future.
Pkucare, a company with so many years of experience in pharmaceutical industry, has drawn much attention by its successful transition. Its major shareholder, Peking University Medical Industry Group, has carried out all-round cooperation with Peking University Medical School. Pkucare owns a large number of hospitals and medical institutions. Apart from establishing the largest individual hospital in Asia—the Peking University International Hospital, which will be opened at the end of this year, Pkucare also participated in the acquisition of public hospitals and investment in the emerging specialist hospitals.
“According to Pkucare’s current plan of medical rehabilitation, it may, first, engage in the acquisition of private hospitals and hospital trusteeship for expansion in the future, and then fund the Peking University Medical Rehabilitation SAT capital using those mature and standard assets.” The SAT Capital Partner, Aaron Xue told the journalists that, for the shareholders of the Pkucare, now purchase of the public hospital is the one-step method to consolidate its hospital network.
“When most other health care companies have not yet established a sound and sustainable profit model, the successful transformation of Pkucare gives the market a very clear estimation and expectation.” A Shanghai Securities analyst told journalists that despite that there are many listed companies involved in the medical services and related industrial chains, which companies can grasp the historic opportunities, in the future, brought by the reform of medical institutions with various forms is still waited to be seen.
Company Name: China Daily Corporation
Contact Person: Huang Yan