IHH Healthcare (“IHH”), its strategic partner in Mainland China, Taikang Insurance Group (“Taikang”), and their project joint venture partner Shanghai Hongxin Medical Investment Holding Co Ltd (“Shanghai Hongxin”), today broke ground for Gleneagles Shanghai Hospital (“Gleneagles Shanghai”), a 450-bed multi-specialty general hospital in Shanghai New Hongqiao International Medical Center (“NHQIMC”).
The only foreign private joint venture hospital in NHQIMC, Gleneagles Shanghai is expected to require RMB1.36 billion of capital expenditure and is set to open in 2020. IHH’s entry into NHQIMC will support the Central China government’s ambition to develop Shanghai into a world-class medical destination for China nationals, medical tourists and expatriates while also providing additional healthcare options for local residents.
Gleneagles Shanghai marks the next phase of growth for IHH in Greater China, having established a firm foothold in its primary care sector over the last decade. It is part of an RMB8 billion pipeline of hospital projects that will deliver quality healthcare options for patients across key regions, paving the way for Greater China to become IHH’s fifth home market after Malaysia, Singapore, Turkey and India.
Besides Gleneagles Shanghai, the Group opened the 500-bed multispecialty hospital Gleneagles Hong Kong in March 2017, and will progressively open the 350-bed general hospital Gleneagles Chengdu in 2018 and the 70-bed obstetrics and gynaecology hospital Gleneagles Nanjing in 2019.
To further accelerate its growth in the Mainland, IHH entered into a strategic partnership with Taikang to leverage their complementary strengths in healthcare and insurance. With the completion of the transaction in April this year, IHH and Taikang will jointly fund future projects in proportion to their shareholdings in an IHH subsidiary (IHH: 70.1%, Taikang: 29.9%) that manages its primary care portfolio as well as new hospital projects in the Mainland. For the development of Gleneagles Shanghai, IHH and Taikang have entered into a 70:30 joint venture with Shanghai Hongxin, a majority-owned subsidiary of Shanghai New Hongqiao International Medical Center Construction Development Co Ltd.
Paul Gregersen, Chief Executive Officer for Greater China, Parkway Pantai, a wholly-owned subsidiary of IHH Healthcare, said: “We are proud to anchor our growth in Greater China with Gleneagles Shanghai, and are honoured to be the only foreign joint venture general hospital in NHQIMC. We look forward to supporting the Government’s ambition to provide more quality healthcare options for locals and develop the city into a world-class medical destination.”
Dr Tan See Leng, Managing Director and Chief Executive Officer of IHH Healthcare and Group Chief Executive Officer and Managing Director of Parkway Pantai, said: “Greater China is our key growth market and we are committed for the long haul. We are confident of our prospects, given the rising demand for quality healthcare here and recent reforms by the government to open access for private investors to develop private hospitals and broaden health insurance coverage. With our global track record in delivering outstanding patient care and clinical outcomes, we are in a strong position to meet China’s enormous healthcare needs.”
Gleneagles Shanghai Hospital will be built on a 35,754 square metre site acquired on a leasehold basis for 50 years. A comprehensive range of specialties and healthcare services will be offered, with a focus on seven key specialties: cardiology, cardiac surgery, gastroenterology, urology, minimally invasive surgery, general surgery and internal medicine.
Located near the Shanghai Hongqiao International Airport and high-speed railway station, it will leverage IHH’s existing network of medical centres in the city and its more than 40 years of experience in hospital management globally to offer quality integrated care.