TreeENT Health Files Prospectus as China's First Otolaryngology Day Surgery Center Serving Nearly 10,000 Patients in One Year

“Day surgery,” a concept that originated in developed countries in Europe and America, refers to a surgical model in which patients complete preoperative examinations and schedule their surgery before admission, allowing for hospital admission, the surgical procedure, and discharge to all be completed within a single day.

In Europe and the United States, it has undergone more than a century of development and has become largely scaled. In China, after more than ten years of sporadic implementation, it is gradually entering a phase of rapid growth. According to data from the Chinese Day Surgery Alliance, by 2020, the number of hospitals in China performing day surgeries will reach 200–300, with day surgeries accounting for 20–30% of total procedures. However, statistics show that there are currently only about 10 independent day surgery centers in China.

A research report released by Market Research Future shows that the global day surgery market is expected to reach a scale of $2.45 trillion by 2022.

This means that there are substantial market opportunities for ambulatory surgery in China, awaiting more healthcare entrepreneurs to fill the void in this vast market space. Against this backdrop, TreeENT Health, which has been quietly exploring the industry for over three years, entered the ambulatory surgery sector by focusing on ophthalmology, otolaryngology, and related procedures. It gradually pioneered a premium care model featuring “one-minute appointment scheduling with specialists, one-hour consultation and examination, and same-day discharge after surgery,” becoming the first ambulatory surgery center in China specializing in ophthalmology and otolaryngology.

How to Identify the Right Direction in a Rapidly Changing Market and Address Industry Pain Points Through an Effective Business Model? TreeENT Health Offers a Referenceable Practical Solution.

Xu Jinghuan, Founder and CEO of TreeENT Health, is a quintessential medical professional. She began her career as a pediatrician at a Grade 3A hospital and has since dedicated over a decade to the healthcare industry. Through these experiences, she identified a significant disparity in the diagnosis and treatment of ENT (ear, nose, and throat) conditions between Europe and the United States and China: in Western countries, 70% of ENT procedures are performed as day surgeries, whereas in China’s first-tier and near-first-tier cities, this proportion remains below 5%.

“It was precisely because we saw this market opportunity that we founded TreeENT Health. Initially, our positioning was to provide specialized services in ophthalmology, otolaryngology, and related fields, offering patients a premium healthcare experience through an ambulatory surgery center operational model,” Xu Jinghuan told VCBeat.

In China, the difficulties and high costs associated with accessing medical care are persistent challenges. In fact, the issues reflected by “difficulty in seeing a doctor” and “high cost of medical care” stem not only from an outdated service system but also from technological lag.

Service stems from people, and technology from equipment. To this end, TreeENT Health has focused on addressing the issues of “technology” and “talent” since its inception.

Despite being in its early startup phase and facing tight funding, TreeENT Health adheres to the principle that “to do a good job, one must first sharpen one’s tools.” The company has made significant investments to introduce the latest and most advanced technologies and medical equipment from both domestic and international sources, including targeted laboratory and specialty diagnostic equipment, ultra-low-dose American CBCT imaging systems, and comprehensive hearing diagnostic equipment from Denmark’s Interacoustics.

On the other hand, TreeENT Health deeply understands that attracting top talent is the solid foundation for achieving customer satisfaction. Throughout its continuous development, TreeENT has assembled a team of senior otolaryngology experts. Within TreeENT’s medical team, leading physicians all possess overseas educational backgrounds or international practice experience, or hold titles such as department directors, professors, or doctoral supervisors in otolaryngology at provincial-level tertiary hospitals.

TreeENT Health doctors are performing rhinological surgery.

Technical expertise and talent are key “levers” for instilling greater confidence and peace of mind in patients. However, the critical challenge lies in efficiently integrating processes to create a closed-loop service model. To address this, Xu Jinghuan set his sights on day surgery.

In July 2017, TreeENT Health established its first ENT day-surgery center in Hangzhou, unblocking the critical bottlenecks of day surgery through a tripartite model integrating “process, technology, and renowned experts.”

On TreeENT Health’s platform, its personalized hotline enables patients to “secure an appointment with a specialist within one minute.” Patients can call the reservation hotline to book appointments in advance. After assessing the patient’s needs, customer service representatives will prioritize securing an appointment with the patient’s preferred specialist or recommend other high-quality specialists. To address the challenge of “difficulty in finding top-tier doctors,” TreeENT Health not only leverages its own pool of physicians but also integrates access to numerous leading local specialty experts.

Specialist-required examinations have basically formed a closed loop at TreeENT Health clinics, allowing a patient’s consultation and specialist tests to be completed within approximately one hour. For first-time patients, the TreeENT platform provides a 30-minute consultation; for follow-up patients, a 15-minute consultation is provided. After the attending physician issues the test orders, a dedicated customer service representative guides the patient through the corresponding examinations, thereby eliminating wait times.

TreeENT Health Physicians in Consultation

In terms of surgical workflow, TreeENT Health completes anesthesia assessment, preoperative evaluation, preoperative counseling, preoperative management, and preoperative examinations before the patient is admitted for surgery. After admission, the patient only needs to undergo the surgery and corresponding postoperative observation, and can be discharged after evaluation.

Efficient processes have enhanced patient care efficiency. Equipped with digital operating rooms, highly patient-centered consultation rooms and treatment centers, and internet-based “pre-operative + post-operative” monitoring, TreeENT Health is now able to deliver a care experience where patients can “schedule an appointment with a specialist in 1 minute, complete consultations and examinations within 1 hour, and undergo surgery and be discharged on the same day.”

“TreeENT Health aims to ensure medical quality while enabling shorter hospital stays, more minimally invasive surgeries, and a better patient experience.” This is the goal of TreeENT Health and precisely where the advantages of ambulatory surgery lie.

After more than a year of development, TreeENT Health’s day-surgery center in Hangzhou, specializing in ophthalmology, otology, rhinology, and laryngology, has made significant progress.

According to official data from TreeENT Health, by the end of 2018, the TreeENT ENT Day Surgery Center had cumulatively served nearly 10,000 patients through word-of-mouth alone, without any public promotion.

Following its market success, TreeENT Health has once again become the “apple of investors’ eyes” this year. On February 26, TreeENT Health completed a Series A financing round worth tens of millions of RMB, with investors including Sidao Capital, F-Prime Capital, and Huachuang Capital.

In Xu Jinghuan’s view, independent day-case surgery is still a nascent concept in China. The investment interest shown by investors has provided TreeENT Health with the greatest confidence to establish a closed-loop business model in this emerging healthcare sector.

Following the completion of its Series A financing, TreeENT Health has secured the financial strength to continue establishing day-surgery centers and comprehensive outpatient clinics. In the coming years, TreeENT aims to expand from its initial footprint at the Hangzhou Medical Mall, gradually covering the Yangtze River Delta region and ultimately extending its presence across China.

The road ahead will certainly not be smooth, but Xu Jinghuan stated, “TreeENT Health will remain committed to deepening its expertise in this field.”