** The purchase price soared capital and deterred

Recently, the reporter learned at the China Medical Industry Health Industry Investment and M&A Conference held in Beijing that because of the strong pursuit of social capital, the purchase price of public hospitals in the conversion system is getting higher and higher, and many “pre-integrated” social capitals are starting to deter .

According to Tian Liwei, director of the Dali Healthcare Industry Holdings Co., Ltd. and general manager of the Medical Development Department, this situation may delay the timetable for restructuring the public hospitals. However, on the other hand, this “retreat” will allow social capital to invest in health care.

Purchase price climbed

In fact, restructuring and mergers and acquisitions of public hospitals took shape years ago, and in the past two years, hospital acquisitions have continued. For example, Shuanglu Pharmaceutical planned to invest RMB 120 million to acquire 85% of Sichuan Red Cross Cancer Hospital's operating income; Shuanglu Pharmaceutical planned to invest 160 million yuan to build a hospital in Xinxiang, Henan Province; Kangmei Pharmaceutical purchased a number of hospitals in Meihekou City, Jilin Province as a whole. At the same time agreeing to accept the existing staff of these hospitals, the follow-up investment will not be less than 500 million yuan.

Shanghai Medical Medical Investment Management Co., Ltd., a subsidiary of Fosun Pharma, is even more generous. In October 2013, it plans to invest no more than 693 million yuan in the acquisition of 60% of Foshan Chancheng Central Hospital Co., Ltd. Prior to this, Fosun Pharma also purchased a 50% stake in Guangzhou Nanyang Cancer Hospital.

Tian Liwei said that from the past 10 years of hospital acquisitions, the price has been increasing, especially from the comparison of the existing size of the hospital, the purchase price has almost doubled in the past five years. With the news of the profitability of some acquired hospitals and the introduction of the government's policy of encouraging social doctors, the prices of future acquisitions may further increase.

Zhou Dawei, chairman and expert advisor of Yide Medical Investment Management Group, believes that the increase in purchase price is mainly due to the pursuit of the health industry in the whole society. In particular, the listing of Phoenix Group in Hong Kong has stimulated the enthusiasm of social capital for the health industry. The expectations of the managers of public hospitals will also increase.

Resource mismatch

According to public information, when Jinling Pharmaceuticals acquired the Suqian Municipal People's Hospital, the hospital was already heavily indebted. After custody, in 2004 the hospital realized a business income of 80.71 million yuan and a net profit of 5.21 million yuan. By 2006, the hospital had realized a profit of 11.04 million yuan in its main business in the first three quarters.

However, it is unlikely that the hospital investment case will yield great benefits in the short term. Zhou Dawei introduced that “The Mayo Diagnostics, a world-renowned private non-profit medical institution, has spent more than 20 years from investing to making profits.” Most of the hospitals that have been acquired so far are either under further construction or are still operating at a loss. .

Hu Hao, President of Beijing-based China-China Yihe Medical Group, believes that investment in hospitals is not like “grass and vines”. It takes long-term investment like planting trees. This time may be 5 years or 10 years. It is longer, so the industry also has a very clear statement: "If you want to make money, don't go to the hospital."

Tian Liwei pointed out that, in fact, public hospitals have already gone through three stages in their restructuring: First, they have shifted from private investment in the past to capital investment; Second, they have switched from simply building new hospitals to building "hospitals" and "taking hospitals" at the same time; Third, from the short-term capital operation in the past to the long-term industrial investment.

Regrettably, there is a problem with non-equipment during the third transition period in China. Jin Yu, a managing partner of Jiyuan Capital, pointed out that medical and health care and medical services require long-term investment, but China's current fund has been extended to a maximum of 7 years, so from the capital point of view, if you want to invest in this area of ​​medical and health services, you need to raise funds. People give clear explanations. She suggests that in the investment industry, special funds be set up for health care so that the investor's mentality and investment capital will have the best match. “A lot of current investments are eager for quick success. Under such circumstances, it is impossible to make a genuine brand for medical services.”

Fang Gang, a partner at SaiBao Lean, predicts that this transition period may not be too long. He believes that after the market pricing of medical services is liberalized, the quality of services determines the pricing of services. After all, most people in China now spend money and cannot buy quality medical services. Many people are still willing to use their money to purchase quality products. Services.