The largest overseas acquisition to date in the medical industry of China has finally landed on the strategic roadmap of Luye Medical Group.
SINGAPORE, 18 April 2016 – Luye Medical Group announced today that Australia’s third largest private hospital group, Healthe Care, had officially become a member of Luye Medical Group after its acquisition from Australia’s Archer Capital Fund was completed. Through the acquisition of Healthe Care, Luye Medical Group has leapfrogged into the ranks one of the largest comprehensive international private medical groups of China. Healthe Care will continue to develop in the Australian market while also join forces with Luye Medical Group in developing the China market and building a high-end hospital group that meets the market demands of China targeting medium and high-end customers.
Driven strongly by the aging population and favourable industry policies, the Chinese medical services market has entered a rapid development period. According to statistics, the market size of Chinese hospital industry is 280 billion US dollars and the compound annual growth rate of hospital income during 2009~2013 was 20% , of which that of private hospitals reached as high as 28%. However, due to lack of policy support and structural issues in the industry, it has been difficult for private hospitals to realize specialization, high-end orientation and branding, resulting in the fact that Chinese private medical institutions only account for 10%1 of the total patients, notably lower than the 20%~30% target2 set by the government.
Luye Medical Group believes that the acquisition will greatly enhance its service capabilities in China, enabling it to develop the Chinese market with international standards. “ Healthe Care has high-quality assets and proven development strategies. Relying on its key specialist skills and experiences, we can build a high-end hospital model that meets the market demands of China for medium and high-end customers.” said Mr. Guo Wenfei, President of Luye Medical (China).
Steve Atkins, CEO of Healthe Care, said: “Healthe Care has maintained good growth performance in the last several years at a rate much higher than the average level of private hospitals in the country. We have confidence to further increase the number of hospitals in Australia as planned and expand the number of beds to 3,000 in the next few years. The management team of Luye Medical is visionary and has strong executive abilityilties. I firmly believe that Luye Medical will continue to support the business development of Healthe Care. I am delighted in working with the management of Luye Medical and we are committed to providing high-standard medical services for more patients in Australia, China and other places of the world.”
Healthe Care was established in 2005. Currently it owns 17 medical institutions in Australia’s major cities and regions with about 2,000 beds, over 50 operating rooms and 4,500 employees, Its annual revenue is approximately RMB 3 billion. The major specialties of Healthe Care cover areas such as oncology, cardiology, neuropsychiatry, orthopaedics, rehabilitation, gynaecology, general medical services and boast of top treatment technology and equipment. Healthe Care has built one of the first hybrid operating rooms in the world, and is the first medical institution to have introduced spinal robot in Australia. Its day surgery centers, equipped with meticulous pre-operation evaluation processes, advanced operation room conditions and equipment, scientific medical treatment procedures, complete post-operation follow-up system, as well as staffed with highly professional and vastly-experienced surgeons and anaesthetists, have also become a featured service of Healthe Care.
“The joining of Healthe Care represents an important milestone in the development of Luye Medical Group. It has great strategy significance and far-reaching influence on the development of medical services and lays the foundation of the leading position of Luye Medical Group and Luye Group both internationally and in China,” said Mr. Liu Dianbo, Chairman of Luye Group. Mr Liu also said that both Healthe Care and Luye Medical Group specialize in areas such as oncology, cardiology, neuropsychiatry, orthopaedics, and rehabilitation and have synergies with the key therapeutic areas of the products of Luye Pharma Group, another member of Luye Group. “The acquisition of Healthe Care will contribute to more effective and closer interaction between healthcare services and pharmaceuticals within Luye Group, providing medical solutions to patients through integrating diagnosis, treatment, and rehabilitation, as well as satisfying the demands of people for higher quality health and living.”