Genertec Universal Medical Group Company Limited (“Universal Medical”, HK.2666) agreed to integrate medical institutions under Yangquan Coal Industry Co., Ltd. (“Yangmei Group”) on Dec 28, 2019. The signing ceremony with Yangmei Group was held in Taiyuan city, Shanxi province, with several leaders present from China General Technology Group, Shanxi SASAC, Yangquan Municipal Government, Shanxi Medical University, Universal Medical as well as Yangmei Group.

Mr. Xie Biao, deputy general manager of China General Technology Group (“Genertec”), controlling shareholder of Universal Medical, laid great expectations on the cooperation. He believed that both sides would give full play to their own advantages to comprehensively promote treatment and services capabilities of the hospitals, providing more professional and convenient services with humanity for staff of Yangmei Group and local residents, also making greater contributions to a “Healthy China” project as well as a “Healthy Shanxi” project.

Both Giants to Make a New Paragon in SOE Hospital Reform in Shanxi Province

Genertec is one of the six central SOEs formally approved by SASAC to conduct medical affairs as core business while Universal Medical plays the key role in the health sector of Genertec. Universal Medical owns as many as 39 medical institutions with over 12000 beds under operation, widely distributed in East China, North China, Northeast China, Northwest China, Southwest China and Yangtze River Delta Area.

During the ceremony, Mr. Gao Chunyi, deputy director of Shanxi SASAC, praised that the cooperation marked a strong practice of SOE hospital reform and made a new paragon in Shanxi province. Yangmei hospitals were believed to have better future in operation and development and be able to provide diversified services to local residents after being transferred into central SOE with medical affairs as core business.

Mr. Lei Jiankun, mayor of Yangquan, sent her congrats on the cooperation. The signing, she said, marked the great results of Yangquan’s efforts to push forward SOE reform and spin-off of SOE institutions with social functions, which meant a lot to deepen regional medical mechanisms reform. Yangquan enjoyed unique advantages in location, ecosystem, climate as well as medical resources. The municipal government also would make health industry a key transformation target, hoping Universal Medical and public hospitals complement each other’s advantages to contribute to health industry of Yangquan.  

Deepened Cooperation to Establish a Regional High-end Academic and Technology Center

Previously, Universal Medical joined the listing procedures of Yangmei General Hospital Medical Management Company (“Yangmei Hospital Management”) on Shanxi Property Rights Exchange and finally won the bid from the licenser Yangmei Group to become the controlling shareholder of Yangmei Hospital Management.

Yangmei Group is a large-scale SOE under Shanxi province, ranking the global 500 with dozens of hospitals. Yangmei Hospital Management is the wholly-owned subsidiary of Yangmei Group, managing as many as 7 hospitals including Yangmei General Hospital, the Second Hospital of Yangmei Group and the Third Hospital of Yangmei Group, etc., with the actual capacity of 2123 beds. Yangmei General Hospital locates in the hub of Yangquan city and is the first hospital in the city to have passed the national test for Class III Grade A hospitals with a national advanced stroke center. Mr. Wang Yongge, vice-chairman and general manager of Yangmei Group, described the cooperation background. Yangmei Group stuck to and implemented the spirit of SOE reform, he said, the cooperation with Universal Medical marked a good pilot in health industry to get attached with professional strengths and overseas resources, transforming the work philosophy from treatment-oriented to health-oriented. He wished that in the next step, both sides would   make targeted efforts to promote health development map and proactively explore the new-mode elderly care business.

Ms. Peng Jiahong, CEO of Universal Medical, talked about the great significance and prospects of the cooperation in perspective of deepening SOE reform, establishment of regional medical center and coordinated development of health industry. The cooperation would focus on Yangmei General Hospital with the development concepts of 3A hospitals to solidity the existing disciplines foundation while making breakthrough in core disciplines and specialties to establish comprehensive strengths. On the other hand, a regional medical center would also be built to achieve internal efficient coordination among different medical institutions to the benefits of local residents.

The cooperation made a fabulous opening of the Shanxi medical map of Universal Medical. In future, Universal Medical will further complete its network around the country and output resources and managerial expertise for great-leap-forward development of hospitals. Quality medical services will always be the key to complete the full business chain along elderly care + medical, health management, etc.