CMIG is committed to forging an O2O platform based on community property management. It strives to be China's largest value-added service provider for communities by offering a comprehensive community service through property management. CMIG Property establishes a community-based open platform to meet consumers’ needs and offers one-stop services that bridge the gap between online and offline resources, covering sectors such as property management, social life, commodity services, wealth management, health care, home care, education and tourism.
On January 12, 2016, CMIG’s third planning office and CMIG Property joined hands with Roland Berger, an international high-end consulting firm, in co-organizing a medical forum on "Sustainable Medical Development in Communities." Participants of the forum included a great number of experts, scholars and enterprise delegates from government agencies, medical service providers, insurance companies, medical investment organizations, and world-renowned consulting firms. Participants engaged in heated discussion on forming a blueprint for community medical services.
Wang Hui, chairman of CMIG Property, made a welcome speech and addressed the participants with CMIG Property’s long-term vision: a commitment to build an O2O platform based on community property management. The company strives to be China's largest value-added service provider for communities by offering a comprehensive community service through property management. CMIG Property establishes a community-based open platform to meet consumers’ needs and offers one-stop services that bridge the gap between online and offline resources, covering sectors such as property management, social life, commodity services, wealth management, health care, home care, education and tourism.
At the same time, Chairman Wang also stressed the company’s prospective investment and strategic layout in social medical services, which won the high praise and recognition of all participants. It is commonly agreed that national policies are in favor of the social health industry. CMIG Property was thus praised for its strategic vision to make investment in this area, which is beneficial to both the country and its people.
CMIG Property Makes Layout in Community Medical Service
Good management and community support are fundamental to community health care. CMIG Property has taken a big step down this road. In 2015, the company’s total property area (through investment and property management) reportedly amounted to 140 million square meters, providing service to 3 million people. By 2017, CMIG hopes to enlarge its total area of property management to 1 billion square meters and serve a population of 30 million. In order to achieve this goal, CMIG is building an intelligent property management system to bring about an O2O platform that would strengthen its interaction with community users. In addition, CMIG Property is hopeful to achieve sales of 100 billion yuan in financial assets this year by tapping into the group’s strength of comprehensive financial services. Consequently, a business model built on "community platform plus finance" safeguards CMIG Property’s layout in community health care.
Favorable Policies for Investment in Community Health Care
"CMIG Property’s endeavor in community health care conforms to national policies. It is the right move at the right time, and CMIG Property is rising to the call of the era," said Fan Jing, former planning director of medical affairs authority, affirming the strategic layout of CMIG Property.In September 2015, the general office of the State Council released guidance on grading clinical treatment. It clearly ordered that by 2017, China is expected to have in place a systemically graded clinical treatment with a clear mechanism of independence and cooperation among various health care institutions. Patients are expected to be treated with high quality medical resources in an orderly and effective manner. More efforts will be made on building a talent pool of clinical doctors concentrating on general practitioners. China will further increase its efficient use of medical resources and improve overall efficiency. Diagnosis and treatment given by primary health care institutions are expected to account for a higher ratio of the total volume, while medical services will be increasingly standardized.
According to Fan’s interpretation of the national policies on health care, liberalization of such medical resources as doctors is becoming ever more evident; an increasing number of restrictions are being lifted, and community health care is expected to be smaller, well-regulated, and market-oriented. These policies help form a welcoming climate for CMIG Property’s adventure in community health care on the basis of the company’s existing layout.
Stable Return on Health Care Investment
“Health care is no industry for quick money. Rather, it is a sector that yields stable returns, making it suitable for CMIG Property, a clear-positioned institution with professional investment expertise,” said Hu Xubo, partner at Qiming Venture Partners.
Currently, the industrial chain of health care is built on three pillars: preventative health care to treatment, recovery, and medical services related to elderly care. According to Jin Yi, partner of Roland Berger in Greater China, each sector engages in different service providers. Specifically, the preventative health care market typically involves insurance institutions, whereas the medical treatment sector is mainly divided among specialized hospitals, public hospitals, and third-party testing bodies. The recovery market, however, remains blank, which is why the state government encourages investment of social capitals in this area and supports the integration of community health care. A considerable number of developers are making inroads into elderly care and medical services.
Speaking of basic inputs from social capitals, Gong Chunhe, general director of Taishan Capital, is of the opinion that contrary to the slow investment return on new hospitals, mergers and acquisitions of health care groups are more appealing to them—in particular the acquisition of reformed state-owned hospitals for restructuring.
Zhang Rui, CEO of Chunyuyisheng, an online medical service consultancy, offered insight from the perspective of an internet start-up in medical service. He believes that driven by the existing technology, medical service is bound to shift its operation. Decentralized health care has become the norm with the emergence of new supply and demand. This will lead to the disintegration and rebuilding of the industrial chain of medical treatment and form a new chain of community health care in conjunction with community elements. Thus, communities will be the new hot-spots for future investments.Wang Hui, chairman of CMIG Property, is confident of the company's strategy in community health care and called on participants of the forum and all those who are following the cause of community health care closely to engage in discussion on its sustainable development to build a cooperative platform in this area.
( Contributor: CMIG Property)