Wanda Group Private Investment to Boost Development of New Hospitals
The Wanda Group is planning to invest 15 billion yuan for the development of hospitals around the country tapping into the reform drive that will give private firms a bigger role in health care. The said deal will give Wanda invest in and construct three hospitals in Shanghai, Qingdao and Chengdu and will be managed by the British based health care operator International Hospital Group.
The investment goes into China’s wider health care reform drive together with the Central Government in hopes to attract more private capital into the sector and reduce the burden on public hospitals while trimming the health care bill which is said to hit US$ 1.3 trillion by 2020. Wanda’s chairman Wang Jianlin stated that the developments would help satisfy the growing health care needs of the country’s increasing population and help the sector more widely by bringing overseas experience into the market. This will also help the cities wherein these projects are located in elevating their health care standards into international level and will serve as role models for the development of premium health care in China.
The construction of two of the hospitals is set to start during the first quarter of the years and the construction of the complex housing for the third hospital was already started and will be completed in 2018. As State run hospitals still dominate the market, there is a surge in the number of private facilities in the past years as the government relaxed the rules for private investment. This brought in firms such as Germany’s Artemed Group, US based Chinaco Healthcare, China’s shanghai Fosun Pharmaceutical Group Co. plus investment firm TPG Capital Management and property develops Evergrande Real Estate Group and Vanke Co.