It also acquired a majority stake in HeTian Hospital Management.
Global investment company KKR Group has forayed into the Chinese healthcare market through the creation of SinoCare Group, a hospital investment and management platform company in China.
SinoCare aims to provide high-quality health care services to patients inChina through the acquisition, build-out and consolidation of hospitals.
"SinoCare will work alongside KKR to address the high demand for quality medical services in China. It will build its platform through organic growth and acquisitions," the company said in a statement.
KKR also revealed that it has acquired a majority stake in leading Chinese hospital management company, HeTian Hospital Management Co.
"This is a pivotal time for healthcare in China given the growing demand for quality medical services and treatments nationwide. We’ve seen first-hand some of the issues facing Chinese patients and are dedicated to supporting their needs through the launch of SinoCare and through the platform’s initial investment in HeTian," said Paul Yang, Member and CEO of KKR Greater China.
HeTian operates two general hospitals in Anhui province – Lu'An Shili Hospital and WuHe Hospital – and Lu’An HeTian Nephrosis Specialty Hospital, an operator of three dialysis centers. The group manages a total of 1,300 beds, in addition to overseeing the construction of a new hospital with 500 beds planned to be completed by 2020.
SinoCare will support HeTian’s expansion and growth through acquisitions, with a focus in third- and fourth-tier cities where medical resources are scarce and quality health care services are lacking.
There are fewer than three hospital beds per 1,000 people in China’s fourth-tier and smaller cities, according to the National Health and Family Planning Commission.
"As China faces a shortage of medical professionals and clinics, the role of private hospitals is becoming increasingly important," said Dr Li Fangjun, Founder and Chairman of HeTian. "We are excited to partner with SinoCare and KKR to grow our hospital group to meet the needs of patients in the Yangtze River Delta and beyond."
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