Chinese developers race to lucrative healthcare sector: 7 key points

Chinese developers are rapidly pursuing growth in the healthcare market; an industry they believe will be their next lucrative opportunity. According to a recent Bloomberg piece, China is expanding at its slowest rate since 1990, but is still the second-largest economy in the world. Developers deep in debt are tapping healthcare as an alternative, according to the article.

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Here are seven key points:

1. Of China’s 133 listed developers, at least 15 have diversified into areas like hospitals and plastic-surgery facilities.

2. Some companies have moved completely away from property development, such as the now-named Winsan Shanghai Medical Science Technology — formerly an industrial developer — has said they were pushed into healthcare by the market environment.

3. The Chinese government aims to expand its healthcare industry to over 8 trillion yuan by 2020, according to the report.

4. A southern China developer, Lvjing Holding, plans to raise 20 billion yuan as they expand into “internet healthcare.”

5. International hospital operators from Guangzhou, and Massachusetts-based Brigham and Women’s Hospital have traveled to China to explore potential expansion.

6. Notable companies such as Shanghai Fosun Pharmaceutical Group and Baidu have invested in Chinese healthcare services, especially to stake a piece of land in the m-health and online markets.

7. A few challenges that the Chinese healthcare market may face is the need for developers to partner with hospital operators to design hospitals, as well as a reported scarcity of physicians for private investors.

More articles on healthcare & surgery centers:
Caddis Health Care Real Estate purchases Manatee Surgical Center for $5.4M—5 key notes
Go beyond analytics: How business intelligence can make ASCs more money
Sheridan acquires Coastal Anesthesiology Consultants in Florida—5 key points

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