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The huge market demand has created a "prosperity" of the hospital, and it was once regarded as a "money printing machine" by many netizens. However, the hospital's business has not been easy in the past two years.
On May 10, China Resources Medical announced that in the face of the continuous deterioration of the operating conditions of Huaiyin Hospital, the company will apply to the regulatory authorities to stop the operation of the hospital. This decision was made after evaluating the business prospects of Huaiyin Hospital, with the aim of minimizing the company's losses and preventing risks.
Huai'an Huaiyin Hospital (formerly Huaiyin County People's Hospital), rebuilt in 1976, is a second-class comprehensive hospital integrating medical treatment, prevention, health care, rehabilitation and teaching.
According to the announcement, affected by historical problems such as the gradual loss of medical staff, as well as changes in the external environment such as regional medical security resources and competition in the same industry, the operation of Huaiyin Hospital continued to decline and fell into losses. Although the company has actively implemented a number of measures such as talent recruitment, business transformation, organizational remodeling, and cost reduction and efficiency improvement, it has not been able to turn around the operating situation of Huaiyin Hospital.
It is understood that China Resources Medical acquired 80% of the shares of Huaiyin Hospital for about 883 million yuan in March 2021. However, despite a number of measures, the hospital's operating loss still exceeded 30 million yuan and fell sharply for two consecutive years.
Founded in 2013, China Resources Healthcare Holdings Limited ("CR Healthcare") is a leading comprehensive medical listed company in the capital markets of Mainland China and Hong Kong, and is the listing platform of China Resources Healthcare Group Co., Ltd., a wholly-owned subsidiary of China Resources Group. According to CR Medical's 2021 annual report, as of the end of 2021, the group managed and operated a total of 120 medical institutions in 8 provinces and municipalities in China, and the annual outpatient volume of the group's member hospitals was about 10.78 million.
A deeply aging society is coming
In recent years, the proportion of the population aged 15-64 in mainland China has continued to decline, and the proportion of the population aged 65 and above has increased year by year. For chronic patients, the direct burden of disease caused by long-term check-ups and dispensing of medicines, as well as the indirect burden of disease such as disability caused by chronic diseases, remain high, and it is difficult to escape the state of "poverty due to illness and return to poverty due to illness" only by relying on the support of social medical security, which is particularly prominent among rural residents. In today's aging society, the number of people suffering from chronic diseases will increase.
The annual demand is on the rise
According to the statistics of the National Health Commission, the number of medical and health institutions in China showed an overall upward trend from 2015 to 2020, and the number of tertiary and secondary hospitals increased at an average annual growth rate of 6-8%. In 2020, the number of hospitals in China reached 35,400, a year-on-year increase of 3.03%, of which the number of tertiary hospitals was 2,996, a year-on-year increase of 8.99%; The number of secondary hospitals was 10,404, a year-on-year increase of 7.4%. As of the end of November 2021, there were 36,000 hospitals, a year-on-year increase of 5.36%, of which the number of tertiary hospitals may be 3,178; The number of secondary hospitals is 10,700.
During the 14th Five-Year Plan period, the medical supply of public hospitals will continue to expand
With the deepening of the aging of the population in the mainland, the demand for public hospital services in the mainland will gradually expand, and the mainland will continue to expand the supply of medical service resources. The "14th Five-Year Plan" outline points out that the mainland will expand the supply of medical service resources with public medical institutions as the main body and non-public medical institutions as supplements. At the same time, it is necessary to strengthen the construction of public hospitals, accelerate the establishment of a modern hospital management system, and improve the quality and scale of medical staff training.
Fu Qiang, Secretary of the Party Committee and Director of the Health Development Research Center of the National Health Commission, said at the 2023 China Hospital Quality Conference, "The high-quality development of public hospitals should focus on doing what they should do well. ”
Zhu Hongbiao, a first-level inspector of the Department of Physical Reform of the National Health Commission, pointed out that "the high-quality development of public hospitals is the high-quality development of all types of public hospitals at all levels, and the purpose is to allow the masses to enjoy high-quality medical and health services at their doorsteps." Zhu Hongbiao said that in 2023, the proportion of primary diagnosis and treatment will reach 52%, and the attractiveness of primary medical and health institutions to the masses is gradually increasing.
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