Sinophi Healthcare acquires, develops and grows private healthcare businesses in China. These include hospitals focused on delivering specialized care in specific defined clinical disciplines such as orthopaedics, eye care, cardiovascular, oncology and dermatology.
Sinophi’s target businesses deliver quality, value-for-money care catering to the rapidly growing urban Chinese middle class.
Sinophi is pursuing a robust market opportunity in an industry sector supported by two major forces:
1.Strong Demographics
Attractive demographics are driving both strong growth in healthcare demand and rapid growth in healthcare spending in China:
2. China’s National Policies and Priorities
In China’s healthcare system suffered a relative lack of investment prior to the 1990’s with the government managing scarce resources and policy priorities focused on economic development and moving towards a “market economy”.
In 2000 the Government initiated reforms in healthcare leading to significant deregulation and liberalization towards a partial market based structure. Progress was much slower in healthcare services than in the pharmaceutical and medical devices sectors.
New reforms commencing in 2009 changed this, with the Chinese Government investing much needed capital (US$124 billion) between 2009 and 2011 in the healthcare system with a major focus on healthcare services.
Regulatory reforms resulting from the implementation of China 12th Five Year Plan (2011-2015) include official encouragement for the participation of private and foreign capital in the healthcare services sector.
These trends present three challenges to the Chinese healthcare system. First, to develop more hospital capacity, ambulatory care capacity and alternatives for long-term care and home healthcare. Second, to upgrade and improve the management and the economics of hospitals. Third, to control the cost of healthcare to patients.
The growth of China’s private sector healthcare businesses will help address each of these challenges. Presently, barely 10% of China’s more than 20,000 hospitals are privately owned. Aligned with Government policies and driven by strong market demand, over the next decade that number is conservatively estimated by analysts to double.
Sinophi’s chosen focus and strategy is well positioned to create substantial sustainable value for shareholders by supporting the Chinese Government’s objectives to improve the quality, cost and delivery of healthcare to its citizens.