IHH Healthcare To Open US$200 Million Hospital In Shanghai

The 450-bed Gleneagles Shanghai Hospital is part of IHH Healthcare’s planned pipeline of hospitals totalling over US$1 billion in investments.

AsianScientist (Jun. 28, 2017) – IHH Healthcare, Taikang Insurance Group and Shanghai Hongxin Medical Investment Holding Co Ltd have broken ground for the Gleneagles Shanghai Hospital, a 450-bed multispecialty general hospital in Shanghai New Hongqiao International Medical Center (NHQIMC).

The only foreign private joint venture hospital at NHQIMC, Gleneagles Shanghai is expected to require RMB1.36 billion (~US$200 million) of capital expenditure and is set to open in 2020. IHH’s entry into NHQIMC will support the government’s ambition to develop Shanghai into a world-class medical destination for China nationals, medical tourists and expatriates while also providing additional healthcare options for local residents.

Gleneagles Shanghai marks the next phase of growth for IHH in Greater China, having established a firm foothold in its primary care sector over the last decade. It is part of an RMB8 billion (~US$1.17 billion) pipeline of hospital projects that will deliver quality healthcare options for patients across key regions, paving the way for Greater China to become IHH’s fifth home market after Malaysia, Singapore, Turkey and India.

Besides Gleneagles Shanghai, the Group opened the 500-bed multispecialty hospital Gleneagles Hong Kong in March 2017, and will progressively open the 350-bed general hospital Gleneagles Chengdu in 2018 and the 70-bed obstetrics and gynaecology hospital Gleneagles Nanjing in 2019.

To further accelerate its growth in the Mainland, IHH entered into a strategic partnership with Taikang to leverage their complementary strengths in healthcare and insurance. With the completion of the transaction in April this year, IHH and Taikang will jointly fund future projects in proportion to their shareholdings in an IHH subsidiary that manages its primary care portfolio as well as new hospital projects in the Mainland.

For the development of Gleneagles Shanghai, IHH and Taikang have entered into a 70:30 joint venture with Shanghai Hongxin, a majority-owned subsidiary of Shanghai New Hongqiao International Medical Center Construction Development Co Ltd.

“Greater China is our key growth market and we are committed for the long haul. We are confident of our prospects, given the rising demand for quality healthcare here and recent reforms by the government to open access for private investors to develop private hospitals and broaden health insurance coverage,” said Dr. Tan See Leng, Managing Director and Chief Executive Officer of IHH Healthcare and Group Chief Executive Officer and Managing Director of Parkway Pantai.

Gleneagles Shanghai Hospital will be built on a 35,754 square meter site acquired on a leasehold basis for 50 years. A comprehensive range of specialties and healthcare services will be offered, with a focus on seven key specialties: cardiology, cardiac surgery, gastroenterology, urology, minimally invasive surgery, general surgery and internal medicine.

Located near the Shanghai Hongqiao International Airport and high-speed railway station, it will leverage IHH’s existing network of medical centres in the city and its more than 40 years of experience in hospital management globally to offer quality integrated care.

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Source: IHH Healthcare.
Disclaimer: This article does not necessarily reflect the views of AsianScientist or its staff.

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