Former director at Bang Er Orthopedic Hospital Group Co Ltd
- Bang Er Orthopedic’s hospital planning – regions, expansion, hospital size, market positioning and competencies compared with public hospitals
- Target patient profile, treatment cost and time frame
- Departments and service revenue structure, plus profitability across departments and indications
- ROI and core operational indicators
- Capabilities across supply chain management, drug and consumables cost control, plus bargaining power with upstream suppliers
Can you first talk about the landscape of the orthopaedic medical service market in Zhejiang which you are familiar with by private and public hospitals? What’s the rising trend of private hospitals’ penetration rate in the market like?
Although the number of private hospitals is greater than that of public ones, there’s still a gap between the two in terms of medical quality and high-quality medical resources are still concentrated in public hospitals. In what aspects do public and private hospitals cooperate with each other or in what aspects do public hospitals utilise their high-quality resources to help private hospitals grow? Can you introduce some typical cooperation cases between Bang Er Orthopedic and public hospitals based in Zhejiang?
As you said, there are more private hospitals than public ones in the Zhejiang market. What’s the competitive landscape of the private orthopaedic market segment? What’s Bang Er Orthopedic’s position in this market? What about the competition between Bang Er Orthopedic, such a large orthopaedic hospital chain, and other private orthopaedic brands?
Can you explain to us Bang Er Orthopedic’s expansion strategies? Can you also comment on its expansion speed and target expansion regions as well as self-built and acquired hospital models?
You said that Bang Er Orthopedic mainly expands its presence in lower-tier cities at present. Can you give us an overview of the profile of patients in these markets including their sensitivity about treatment cost and time frame?
Hospitals under Bang Er Orthopedic are different in terms of operational performance. Would you please give us examples of hospitals with good or bad performances? What are the core indicators in the assessment of the operations of its orthopaedic hospitals?
Bang Er Orthopedic reduces the volume of surgery and shifts its focus to conservative treatment and physical treatment, which can be seen from the figures of operations of different departments. Orthopaedics has many departments, including spines, joints and wounds. Do surgery and physical treatment have different numbers of patients and different revenues? Suppose the number of patients is fixed, what is the change in the revenue structure of Bang Er Orthopedic after transferring patients from surgery to conservative treatment?
After the reform, what are the changes in the profitability of different departments including the spinal surgery department, the joint surgery department, the department of hand and foot surgery, the department of traumatic orthopaedics and the rehabilitation department?
You said Bang Er Orthopedic was a general hospital. It has more and more departments. Would you please compare the profitability of the orthopaedics department and other departments?
Can you give us some examples to tell how to evaluate the revenue ceiling of profitable departments? How can Bang Er Orthopedic’s hospitals enhance the profitability of their departments? What is the revenue ceiling of relevant departments in the long run?
What are the operating cost structures of orthopaedic hospitals? As a private orthopaedic hospital, what are Bang Er Orthopedic’s supply chain management capabilities and what is its bargaining power in negotiating with orthopaedic consumable suppliers? Does Bang Er Orthopedic enjoy cost control advantages in purchasing high-value consumables compared with public hospitals that purchase such consumables via the centralised volume-based procurement scheme?
Doctors serve as the core resources of hospitals. What incentive policies does Bang Er Orthopedic’s launch to recruit competent doctors? You said that Bang Er Orthopedic wants to imitate Aier in the long term, so does it adopt the partnership mechanism as Aier does?
How well does Bang Er Orthopedic’s mechanism work in accumulating doctor resources? Has it played a positive role in reducing the churn rate of doctors?
In the light of operations, talent and capital, in which aspects will orthopaedic hospitals encounter big problems? What factors may limit the long-term expansion of orthopaedic hospitals?
Aside from orthopaedic hospital, are there other fields in the private hospital industry worth our investment?
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