Austria Connect 19.09.2009 China is getting healthy- What s in for me?
VAMED Group in China Chronology 1988 1996 Rep. Office Founding in China 33 Hospitals Project MoH 2002 First projects with German Soft loan 34.4 Mio. Euro 2007 Founding VAMED Healthcare Co. Ltd. 2008 First additional After Sales Service contract for a hospital in China 2009 > 100 Projects in > 20 Provinces 1987 first project activities in Shanghai 1998 First project with Spanish soft loan 2006 Project 2008 400 CDC in 11 Provinces Start project development Investmentmodel 2011 First VAMED owned private Hospital in China planned 09/2009/ MMi Slide 2 China Health Care Reform- what s in for me?
VAMED scope of services in China a) Sales & Marketing b) Medical planning/ functional planning c) Project Management d) Supply and delivery of medical equipment as well as High Tech M & E Equipment e) IT f) Management Services g) Training & Maintenance 09/2009/ MMi Slide 3 China Health Care Reform- what s in for me?
Examples for Projects with Soft loan- Financing Supply : medical and laboratory equipment non- medical technical equipment High Tech M & E Equipment Training Maintenance Hospital in Erdos (Inner Mongolia) Hospital in Chaocheng (Anhui) Hospital in Laibing (Guangxi) 09/2009/ MMi Slide 4 China Health Care Reform- what s in for me?
Financing of healthcare related projects Chinese Government approved a package of 850 Billion RMB for healthcare to be used between 2009 and 2011 09/2009/ MMi Slide 5 China Health Care Reform- what s in for me?
Characteristics of Chinese Hospital projects New construction and extension of public healthcare institutions has followed 3 tendering steps so far: Planning & Design Construction, M & E Medical equipment, other equipment M&E is equipment or not? China is flexible? Ready and present for the moment when policies change Foster the Turnkey or one solution approach 09/2009/ MMi Slide 6 China Health Care Reform- what s in for me?
New 5 year plan of the Chinese Government from March 2009 on Modernization of ca. 2000 Hospitals Increase number of people with health insurance (200 Mio. until 2011) Establishing of Basic medicine systems (e. g. new list with 400 drugs with unified prices) New guidelines for Soft loan Projects medical equipment: client application with 3 financial proposals for Soft loans Planning and medical packages if soft loan Attract investor to jointly realize Turnkey Better Control of management for management consultancy Leading the client through application process/ tailoring the project 09/2009/ MMi Slide 7 China Health Care Reform- what s in for me?
New development in the Chinese Healthcare System Upgrade of healthcare centers (development of community help centers and upgrade of local hospitals) Harmonization of medical services in rural and city areas Reform of public hospitals (operation and Administration, Separation of pharmacies from hospitals in order to reduce the tendency of over-prescription of drugs) Change of rules for private hospitals and clinics (e. g. pilot Project für Wholly foreign owned enterprises as 100% ownership of clinics in Guangdong Province) 09/2009/ MMi Slide 8 China Health Care Reform- what s in for me?
Future of the Hospital System in China Life cycle approach as integrated Solution also for the Chinese market ENHANCEMENT/ RESTRUCTURING Development of Turnkey Concepts PPP Concepts Investment in Hospitals CONSULTANCY/ CONCEPTION OPERATIONAL MANAGEMENT PROJECT DEVELOPMENT/ PLANNING SERVICES FINANCE CONSTRUCTION Intensive Discussions with MOF, NDRC, MOH necessary 09/2009/ MMi Slide 9 China Health Care Reform- what s in for me?
Privatization: an important factor in the Chinese Healthcare System Realization of a first VAMED- Total Realization Model in China incl. Operation and Management by VAMED Pioneer- and Pilot project 09/2009/ MMi Slide 10 China Health Care Reform- what s in for me?
Additional Potential growing need for Value Added services: - Planning review, Medical Planning, Management Consulting - Doctor s exchange and Training programs - Privatization 09/2009/ MMi Slide 11 China Health Care Reform- what s in for me?
Visions and Trends in the Chinese Healthcare System Developing from traditional hospital structures to the hospital of the future 09/2009/ MMi Slide 12 China Health Care Reform- what s in for me?
Summarized Booming healthcare sector opens huge opportunities + China is in extensive need of upgrading the healthcare institutions China still depends on high sophisticated technology in healthcare from abroad Chinese culture likes/feels affiliated to Austria and Germany, appreciate business virtues Protectionism (e.g. VAT problem for foreign bilateral projects) - Price dumping and hidden low quality; More competition as the world concentrates on China No county hospital financing through foreign loans for the time being Companies need to be patient- development of projects take a long time 09/2009/ MMi Slide 13 China Health Care Reform- what s in for me?
Thank you very much! Contact: Vamed Healthcare Co., Ltd. A2203,Global Trade Center No.36 North 3rd Ring Road Dongcheng District,Beijing 100013,China Tel: +86 10 5825 7490 Fax: +86 10 5825 7459 Email: lucy.dong@vamed.com www.vamed.com 09/2009/ MMi Slide 14 China Health Care Reform- what s in for me?