Published on : Oct 16, 2015
Malaysia’s IHH Healthcare made an announcement that a unit of the healthcare group has signed a contract to operate a hospital in China. The IHH Healthcare group will operate in collaboration with a local partner, in the bid to expand into the second largest economy of the world that has high potential for improvement of medical facilities.
The expansion matches IHH’s plan to establish presence in emerging economies, in the bid to cater to the large population combined with a rapidly increasing middle class population that are driving demand for standard healthcare and advanced treatment.
IHH, which is the largest operator of hospitals in Asia in terms of market value in association with Shanghai Broad Ocean Investments Co. Ltd, its Chinese partner have plans to lease 48,000 square meters of space to run a 350-bedded hospital at Chengdu, which is a medical center located in the west of China.
Regarding operations, the hospital will be operated jointly between the two companies, until the partners receive necessary approvals, as commented by IHH at the time of a stock exchange filing. However, IHH did not offer and details regarding the financial aspect of the agreement.
As commented by the Chief Executive of IHH, the new hospital leads towards the growth plan of the healthcare group in the tertiary segment in China. The executive further commented that the location of the new hospital will also enable to tap into the demand for standard healthcare in the western region of China that is growing fast.
It is expected that the new hospital will serve a catchment area of 148 million residents, which also include expatriates in Chengdu and cities in Sichuan and West China, as stated by IHH. Currently, the IHH group comprises 11 medical c enters in China.
Other than the home base if the company in Malaysia and Singapore, IHH operates hospitals in Turkey, Vietnam, India, and Brunei.