Qingdao Bohou Medical (青岛博厚医疗), a chain of medical services on primary care, has recently received tens of millions of yuan A round financing from investor Ch-gemstone Capital and existing investor Share Capital.
Currently, there is a serious issue with the matching of China’s medical resources. The major hospitals are filled with people, while the current operations of public primary medical institutions are not ideal and is largely decentralized. Grading diagnosis and treatment has risen. The 450 billion market space for primary care is opening to private institutions.
Qingdao Bohou Medical was established in 2010 and started community medical service in the second half of 2013. It provides core services such as outpatient services, chronic disease management, home care, and so on. It has already opened around 30 community clinics. Previously, Bohou Medical was mainly a self-built clinic accumulating operational experience. After more than three years of development, Bohou Medical planned to accelerate the distribution of primary health care network by self-construction and acquisition in parallel.
Within 1 year from the completion of Pre-A round financing, the number of Bohou stores increased from 8 to around 30, and the number of covered residents increased from 90 thousand to about 300 thousand. It has still maintained good profitability while expanding its investment. Yan Honghui, founder of Bohou Medical, said she hopes to build over 100 chain community clinics in the future.
In terms of standardization, informatisation and ecological construction, Bohou has also made some key progress:
Standardization: In July 2017, the ACHS certification of Bohou Medical Group was officially launched, and the international standard of medical service certification was introduced.
Informatisation: The self-developed Intelligent Cloud HIS (Hospital Information System), where the whole processes of drug, charging, medical treatment, and medical insurance are digitalized and uploaded. Next, the doctor-patient closed loop will be digitalized. Included in the loop would be the inquiry process, safety of diagnosis and treatment process, the intellectualization of information system, and the visualization of patient’s health.
Ecological construction: To cooperate with a number of medical service enterprises in the vertical field to build a chain of medical services which enables the out-patients to participate in high-quality medical services and provide a vertical and special treatment scheme for patients with chronic disease.
Share Capital believes that in the next 5 years, grading treatment will remain as the main theme of healthcare reform, and the prospect of primary care will broaden; the key battlefields in East China, Central China and Southern China are basically formed and the industry enters the “second half” of regional and national expansion. The emphasis will be on the inter-regional expansion and integration ability under the premise of ensuring the operational and stable internal control.