(HONG KONG, 11 April 2016) A leading Hong Kong healthcare service provider UMP Healthcare Holdings Limited ("UMP", stock code:0722.HK) held a Signing Ceremony with Puremed Health Partners at the Conrad Hotel Hong Kong today. UMP and Puremed Health Partners will provide exclusive management services for a Shanghai-based general clinic namely Puremed UMP Clinic which was invested jointly by Chow Tai Fook Enterprises Limited ("Chow Tai Fook Enterprises") and Puremed Health Partners. According to the Agreement, Chow Tai Fook Enterprises will set up a Joint Venture ("JV") with Puremed Health Partners to provide set-up and working capital for Puremed UMP Clinic. Puremed UMP Clinic is a general clinic with general practice and cardiology focus. This cooperation will allow all parties to fully bring into play each other's advantages in investment, technique and operations to build a model of development for a clinical network platform.
Along with fast economic growth and the rise of middle- and high-income classes in the Mainland, the demand for premium private healthcare and medical services will likely increase, attracting more physicians to switch to private practice in the private healthcare and medical services segment. However, in practice, it remains challenging in many ways for individual physician or physicians groups to switch to private practice. Therefore, the typical partnership model for clinic management will be for an institution with dedicated management skills to partner with a team of physicians for the development and management of a clinic to draw upon each other's areas of expertise and share in the profits.
Adopting the same partnership model used with Puremed Health Partners, UMP will seek multi-level partnerships with Mainland physicians and physicians groups in general practice and specialist areas, including, but not limited to, establishing more co-branded clinics. And UMP will also fully leverage the resources of its strategic shareholders, as such to quickly expand the UMP's clinical network in the Mainland by developing self-owned clinics, jointly ventured clinics co-funded with physicians, and entrusted clinics under management contract. This will help drive and buttress the Group's efforts in developing healthcare solutions business in the Mainland, and in designing and managing healthcare plans for Mainland corporations and insurance companies.
Mainland business development plan and concept of UMP
UMP has an operational record of over 25 years and provides affordable and coordinated clinical healthcare services in Hong Kong, and it also provides design and management services for healthcare benefit plans for corporate clients and insurance companies, which allows UMP to successfully build up an all-round, highly efficient healthcare services network. Utilizing its well-recognized brand and professional management expertise, UMP is replicating its healthcare management model in the Mainland.
Draws upon the best practices in overseas mature healthcare markets, where general practitioners and specialists to work seamlessly together. After initial consultation, a general practitioner will make an informed decision to transfer the patient to the right specialist for further diagnosis and treatment. UMP will manage the resources within its network to provide well-coordinated general practice plus specialist health management services for its patients. The triage and treatment approach allows general practitioners to act as gatekeepers to prevent unnecessary diagnosis, treatment and examination, so that healthcare resources can be deployed more productively and make health costs more predictable. It will spur the growth of commercial health insurance in the Mainland, which in turn will create a virtuous cycle of released patient demand for private medical services.
UMP will soon be providing a training and career development platform for general practitioners in the Shanghai area. General practice physicians who join UMP Shanghai will receive the security of remuneration higher than the market rate, along with a performance incentive mechanism which will be set up for them. UMP Shanghai is also planning to provide opportunities for outstanding general practice physicians to become equity partners in the jointly opened clinics, thus providing a route to opening up new practices with physicians' own interest.
To efficiently drive business development of UMP's business in the Shanghai region, the Company established an office in Shanghai in 2016, staffed by a team experienced in the healthcare industry. The Shanghai office is fully implementing the development of clinic networks, but will also introduce UMP's healthcare management model to clinics in the Mainland. The office also represents UMP in serving as a coordination centre and contact point for related government departments and business partners. The set-up of the Shanghai office demonstrates UMP's dedication to supporting and initiating cooperation between outstanding specialists and general practitioners in Shanghai. Meanwhile, a Beijing headquarter based joint venture set up by UMP and Phoenix Healthcare has already promoted the above business development.
About Puremed Health Partners:
Puremed Health Partners was established by many experienced physicians and nurses in the Mainland under the leadership of Dr. Sun Yin Guang, a very experienced cardiologist consultant in the Mainland. Dr. Sun served for many years with well-known public and foreign-invested hospitals and has an extensive network of medical connections and vast experience in healthcare investment and management. Dr. Sun will provide medical knowledge and specialty development consultation for Puremed UMP Clinic. Assuming the post of Shanghai Chief Cardiologist of UMP, he will provide healthcare personnel and specialty development expertise for UMP to build up a reliable and professional medical team.
Conclusion and key takeaway from the speeches
Combining the strengths of the parties in the venture will undoubtedly create meaningful value in the healthcare market by pioneering a business model that brings together both general and specialist practice medical experience and experienced healthcare management. Mr. Peng Yong, Shanghai Chief Representative of UMP, said that cooperation with Puremed Health Partners is the first step in what will be the model of the JV in Shanghai. He said he expects more specialist clinical cooperation, involving General Practice, Radiologist, Gastroenterologist and others to be developed in the future.
At present there is a pressing demand for medical specialists in the Mainland, so UMP will continue to expand its clinic network in the Mainland. With the joint investment programme with professional medical personnel to set up the clinics, along with the establishment and expansion of an affiliated network in the Mainland, while cooperating with the strategic partner to pool professional knowledge and resources, a long-term strategic direction will be realised, which follows logically from the listing of UMP last year.
Attending the signing ceremony in Hong Kong today were Dr. Sun Yiu Kwong, Chairman of the Board and Chief Executive Officer of UMP; Dr. Sun Yin Guang, representative from Puremed Health Partners; Ms. Kwok Cheuk Kwan, Jacquen, Executive Director and Managing Director of UMP, Mr. Lee Kar Chung Felix, Executive Director of UMP and Mr. Peng Yong, Shanghai Chief Representative of UMP.
UMP Chairman and Chief Executive Officer Dr. Sun Yiu Kwong said: " The country's policies promote the development of healthcare industry through encouraging the establishment of private medical institutions and training of general practitioners. The country also allows physicians to practise in multiple institutions, and aims to promote the attractiveness of primary healthcare institution to physicians, thereby facilitating the development of private healthcare services in community. With the support to chain operation, the government intends to gradually introduce market competition and encourage diverse health insurance products from private medical insurance companies to assist in the adoption of the triage and treatment system.
We believe the time has come to train general practitioners with our years of experience. By offering attractive benefit packages and incentive schemes, we intend to attract good physicians to community health institutions and encourage youth physicians to devote in general practice. In addition, we plan to partner with the qualified and aspiring general practitioners and specialists in opening up clinics in different communities in order to quickly expand private community clinical network, as well as building up an ethical, skilful, respected and professional medical team."
Dr. Sun Yin Guang, founder of Puremed Health Partners, said, "We are witnessing the deepening of health reforms in China. The public and the market have an urgent need for quality health services. The government has introduced many favourable policies to encourage physicians to become closer to the market and offer their services at multiple institutions or even take up private practice. Puremed Health Partners was founded at this opportune time to help meet these needs. Six months into our operation, we were already embraced by major foreign-invested hospitals in Shanghai and became their major cardiology specialist service provider. Physicians groups may have the professional knowledge, but lack experience in the operations, administration and branding of clinics. The establishment of clinics has been particularly challenging. That's why we have been searching for the right strategic partner to help overcome such weaknesses. We are confident that by partnering with UMP, we can leverage its managerial expertise in providing premium health services in Hong Kong and its clinical network in the Mainland to complement our strengths and achieve win-win results. A partnership such as this will help attract more aspiring physicians to switch to private health care and give them the opportunity to reach their full potential and maximise their value. We are committed to providing high-quality medical services for the increasingly large middle- and high- class in the Mainland."
End of Press Release