Highlight Opinions Proposed on the First Seminar of Healthcare Industry and Hospital Management


A few days ago, under the sponsorship of JD Capital, the First Seminar of Healthcare Industry and Hospital Management was successfully held, during which a number of experts in medical industry and executives from private medical institutions discussed such topics as hospital development strategies and hospital management and operations. Meanwhile, the participants also explored into the ways of seizing historical opportunities to accelerate the development of health industry with the power of capital.

Below are the extracts of some highlight opinions:

Analysis of development strategies of massive health Industr

Chen Shaofu: Private hospitals should have a capital-based thinking.

I think there are three essentials for private hospitals to achieve sustainable development. Firstly, strategies, as private hospitals must clarify their directions and goals; secondly, talents, including backbone doctors and experts, as well as personnel professionally appropriate for various posts in the hospital; thirdly, operation; operation plays an important part in this regard. Hospitals must make comprehensive arrangement of operation, strategies and talents, so as to establish models of management, operation, and profit.

The model of hospital operation consists of two parts, namely, capital operation and product operation. In terms of capital operation of private hospitals, the hospitals should have a capital-based thinking, and proactively seek for cooperation and investment with an open mindset, so as to achieve a win-win situation. The highest level of enterprise competition can be found in the capital market. If private hospitals perform satisfactorily in fund-raising, they can acquire time (technologies) and space (market) with the capital and thus secure strategic initiative. Through capital recycling, they can tackle both technological and market problems.

 (Chen Shaofu: Professor from School of Hospital Management, Dalian Medical University)

Hou Ze: Private hospitals are developing fast in business expansion and collectivization with the help of capital.

From the perspective of development, hospitals need the help of capital to achieve faster development. Encouraged by favorable policies and under the guidance of capital, hospitals will inevitably be incorporated. In the future, the major development model of private hospitals shall feature the establishment of group-affiliated hospitals. In this way, hospitals can be managed as groups, thus improving operation and management efficiency, decreasing purchasing costs, and making full use of human resources.

 (Hou Ze: Director of Datong Modern Hospital)

Wang Xinsheng: Private hospitals should resort to differentiated development models.

There are two key factors weighing heavily in the development strategies of private hospitals: patient management and operation management. A hospital cannot grow without patients or profits. Moreover, private hospitals shall resort to differentiated development models, establish medical service systems with their own characteristics, and develop undervalued businesses what public hospitals are unable or unwilling to tackle. Only in this way can they catch up with and even surpass local public medical institutions within a certain period of time.

(Wang Xinsheng: Chairman and Managing Director of Jiuqiao Medical Group, Director of Zhengzhou Daqiao Hospital)

Wang Tieying: Hospitals providing combined medical and healthcare services enjoy great market potential.

From the perspective of statistics and national policies, medical and healthcare services for the elderly remains a fledgling sector in the massive health industry and thus enjoys promising prospects. 

The medical and healthcare services for the elderly must be combined. For one thing, running nursing homes is not only risky, but less productive; for another, there are less legal disputes and higher benefits in combined medical and healthcare services for the elderly. According to our estimates, nursing homes combining medical with healthcare services report a profit margin of 15% and 16%, while the figure for those without such a combination is merely 8%.

Another advantage of combined medical and healthcare services for the elderly lies in the integration of medical resources and elderly care resources, which helps make the most of social resources. Meanwhile, the combined services can alleviate the straining of medical resources, reduce expenditures in medical services and the burden of healthcare system, deliver more professional, comprehensive and convenient medical services, and lighten the financial burden of households and the whole society at large.

In the future, we will consider the institutions featuring combined medical and healthcare services for the elderly as beacons, develop chain hospital nationwide, and accomplish share listings with the support of social capital.

 (Wang Tieying: General Manager of Xiamen Lianhua Hospital)

Cai Hongbin: High-end private hospitals should integrate the two development models.

There are two development models for high-end private hospitals: the first model features high-end non-medical services aiming at offering satisfactory customer experience; and the other one impresses patients with high-end medical services focusing on curing diseases in a systematical way. Patients choose the higher-priced high-end hospitals to improve their health. The two models of private hospitals, with their own logics, are inevitable outcomes of the market development, and are expected to integrate with each other.

 (Cai Hongbin: Deputy General Manager of Sanbo Hospital Management Group, Deputy Director of Sanbo Brain Hospital under Capital Medical University)

Exploration of ways managing and regulating private healthcare enterprises

Wang Gaifei: Hospitals should focus on shoring up brand reputation and customer loyalty.

For a private hospital in its infancy, to make its brand valued, it’d better boast reputable doctors, medicines, departments, and the hospital as a whole. In the early stages of brand building, the major goal is to raise hospitals’ profile. In the long term, however, hospitals should focus on shoring up brand reputation and customer loyalty in such aspects as technologies, qualities and services. Brand reputation is not only related to advertising, but more importantly tied to experiences and services offered.

How to build the brands of private hospitals? Firstly, the hospital should have strong core competences, including medical technologies and service quality. Secondly, the hospital should boast improved systems with behavior norms and service awareness. Thirdly, it should specify potential strengths, select target markets, and promote brands in a certain way. 

 (Wang Gaifei: Director of Shanghai Yodak Cardio-Thoracic Hospital)

Gao Fujun: Standardization promotes hospital development.

Whether a hospital can be listed among grade-A hospitals is not just up to medical care qualities, but its standardization situation. The standardization of hospitals involves the process of standardizing medical services and hospital management. Medical service standardization requires that, some basic procedures, like cardiopulmonary resuscitation (CPR), be practiced and mastered by all staff. The hospital management shall also be standardized, so that the hospital will not be overwhelmed by problems like network system break-down. Meanwhile, the guiding services are also improved, with clearer signs and better decorations. Moreover, as high levels of informationization is necessary for a grade-A hospital, we’ve been working on this issue and seeing continuous progress in this regard.  

It is a painful but rewarding process. As the patients’ satisfaction rate gradually increases, our hospital is witnessing fundamental changes. To conclude, in the process of hospital standardization, the five core targets of improving quality, safety, service, management, and performance shall be upheld, the philosophy of being patient-centered shall be implemented, and a long-term mechanism for constant progress shall be established, otherwise we must will fall back to the start. 

 (Gao Fujun: Director of Lu’nan Eye Hospital)

Jin Yonggui: Human resources play a critical role for a hospital to succeed.

The positioning of a hospital should match with that of its staffs and talents.

Performance is key to human resources. We appreciate reasonable performance metrics, a broad range of items, diversified applications, and timely feedbacks. Meanwhile, performance must be tied to salaries, which requires hospitals to establish a sound salary system. Market serves as the most important factor in the building of salary system. Only a market-based salary system can boost the enthusiasm of staff.

 (Jin Yonggui: Director of Huangshan Shoukang Hospital)

Lv Jianmin: The progress of information technologies brings about revolutionary changes to the pathological industry

The major problem in the establishment of regional institutions of pathology lies in human resources. Due to the development of network environment and digital scanning, the human resources of medical professionals can be utilized more effectively.

For instance, through the technology of digital scanning, the equipment can create digital images by scanning glass plates. The seemingly simple idea has brought about revolutionary changes. With its help, doctors can perform distance diagnosis. Hence, the traditional ways of working of pathologists have been greatly changed, so that they can work even outside working hours.

Moreover, the technological progress has also broken geographical boundaries. Doctors from various different hospitals can discuss cases together. This change enables the utilization of the scarce pathologist resources to serve the increasing pathological demands, and meanwhile builds up synergistic effects across the region.

 (Lv Jianmin: General Manager of a subsidiary of Hongqi Optical Pathological Service)

Sun Zhaoming: A rationalized purchasing process can better control malpractices.

In order to rationalize the purchasing work in hospitals, satisfy the needs of clinical departments, and ensure that routine works be smoothly carried out, we would like to make the following suggestions. Firstly, separate purchasing department from material management department. The former is only responsible for the purchasing of equipment, medicines, medical consumables, office supplies, and logistic materials in a hospital, while the latter is only in charge of material management. Secondly, a Tender and Procurement Committee chaired by the director or the deputy-director-in-charge shall be established. The committee is responsible for the tender and price negotiation of hospital equipment, medicines, medical consumables, office supplies, and logistic materials. Thirdly, hospitals shall remove the warehouse of medicines and medical consumables under the pharmacy department, and the warehouse of logistic materials under the logistics department. Fourthly, the material management department shall build a warehouse for medicines, medical consumables, and logistic materials, so as to achieve unified management of all materials of the hospital.

 (Sun Zhaoming: Deputy General Manager of Medical Management Department, JD Capital)

Lu Fang: China’s capital market should have stricter requirements and standards for financial management of health industry.

The central task of financial management in hospitals is to provide data information and thus support managerial decision-making. To be specific, firstly, the senior management shall value and support financial management works. Secondly, the financial controller shall take up the responsibility and promote the building of financial system proactively. Thirdly, the financial department shall get involved in hospital operations and cooperate with other departments closely. Fourthly, after the hospitals develop in to a certain levels, they shall promote budget management, and the link management of total cost accounting and performance-based management in due time.

 (Lu Fang: Director of Risk Control Department, JD Capital)

(The opinions above are extracted from guest addresses by JD Capital, and have not been reviewed by the speakers yet.)