China Specialty Care Investment - Is there an automatic Win-Win? Yesterday, a group member in the Beijing Healthcare Forum We Chat group, run by Douglay Corley, posted an article on the rehabilitation industry in China, including a good bit of discussion of comparable international models. I sent the article to Jing Huang for comments (I read Chinese well, but Jing reads it approximately 50X faster than I do), and I asked, specifically, whether there was anything new in this article worth mentioning. She highlighted a section, that I agree … [Read more...] about China Specialty Care Win-Win: Relocation Necessary
Rehabilitation Market Archives
The booming China rehabilitation market seems to be a blue-sea market now, where growth over the next 10 years could potentially be faster than in any other healthcare services markets. It is obvious that several strong reasons are behind this interest.
First, government policies have played a significant role opening the door for private investors. In January 2014 the NHFPC published a policy named “The Opinions on Accelerating the Development of NON-Public Hospitals.” This policy showed that the central government is open to supporting private investors wishing building non-for-profit hospitals, especially rehabilitation institutes. Second, the huge potential pool of patients will be the major driver for market development. Third, the expanded middle class suggests an increased willingness and capacity to pay for professional rehabilitation services.
Rehab Risk and the Origin of our Market Coverage
Although it is good to emphasize the opportunities in this emerging blue sea market, there are also risks and investment barriers. These barriers include lacking of the qualified professionals, wide consumer unawareness of the importance of rehabilitation services, high out-of-pocket costs, and the expansion of public hospital partnership between third class to grass-root institutes.
In the following articles that comprise Health Intel Asia's archives on rehabilitation market services in China, Rubicon Strategy Group's consultants expand in great detail on the above issues that animate the sector. Like all of Health Intel Asia's writing, these articles are based on actual projects that we have worked on. For rehabilitation services the majority of our work experience comes from two types of projects, feasibility studies for new facilities or facility re-purposing projects, and partner identification projects that have led us to try and find potentially synergistic relationships between American senior care and home health companies and Chinese rehabilitation facilities.
Some Key Articles
- Our flagship article on rehabilitation was published in the China Business Review. In Designing Profitable Partnerships With Chinese Hospitals, Ben Shobert and Jing Huang discuss why it is necessary for rehab providers wishing to succeed in the China market to partner closely with public hospitals.
- Executive talk: Finding the Opportunity for Rehab Providers in Guangzhou – Part 1
- Executive talk: Finding the Opportunity for Rehab Providers in Guangzhou – Part 2
Last week, Jing Huang and I published an important piece over at China Business Review. The gist of the column is that if you are a specialty healthcare service provider (post-acute rehabilitation, IVF, oncology, etc.), then your first step in China probably should not be to go it alone. Rather, find a hospital partner - perhaps even a public hospital partner - that does not do a good job at what you do, and structure an agreement to provide co-located services under their roof. Why is this? In the article we propose the following … [Read more...] about Co-Locating Healthcare Services in a Chinese Hospital
What is the real purpose of a China senior living feasibility study? Let's get the obvious out of the way. Yes, you want to confirm that the local market has the demographic and income profile necessary to make a senior living project fly. Yes, you want to determine that the sort of local access to healthcare resources (hospitals, rehabilitation services, home care, etc.) are in close proximity to the planned facility. Yes, a good feasibility study will shed insight into the types of services and amenities the market in question is likely … [Read more...] about China Senior Living Feasibility Studies Build Trust
Last week a column caught my eye about a small California senior living company that had been approached by a large Chinese developer to run their senior living operation. Written by a regional newspaper, the column was ostensibly designed more to capture the oddity of getting a phone call out of the blue from China, targeted at a relatively small, regional player in the American senior living space. The article was not intended to be a thorough investigation of whether or not it made sense for this operator to pursue such an opportunity; … [Read more...] about A Couple of Different Ways to China
Intro: HSM International, Inc. is a pioneering healthcare facilities planning company, established 11 years ago in Beijing to respond to China’s fast growing and unique healthcare facility planning needs. In the past years, HSM has served more than 15 rehab facility and witnessed the development of China’s rehab services market. Recently, Rubicon Strategy Group had a conversation with the General Manager of HSM, Mr. Jin Li, who has 17 years of cross country experience with healthcare management and facility planning in the US and China. The … [Read more...] about China’s Rehab Services from the Perspective of a Facility Construction Planner – Pt 2
Rehabilitation Services China, a two part seriesUpdate: Part 2 of our China Rehab Services Q&A with Jin Li, the General Manager of HSM International, a leading design and development firm for rehabilitation and hospital service providers in China can be found here. See also China Rehabilitation Services: the next blue sea healthcare market in China?HSM International, Inc. is a pioneering healthcare facilities planning company, established 11 years ago in Beijing to respond to China’s fast growing and unique healthcare facility … [Read more...] about Rehabilitation Services China Q&A – Pt1