New Journey Health Group Launches 'Medical Services + Pharmaceuticals' Dual-Engine Strategy Amid Healthcare Industry Restructuring

What industrial transformations will be driven by the accelerating aging of the population and the upgrading of healthcare consumption? Recent authoritative information from the National Health Commission, indicating that China is expected to enter a stage of severe aging around 2035, has once again drawn widespread attention from all sectors of society to this issue. On September 24, Lin Yanglin, CEO of New Journey Health Group, analyzed the current state of the healthcare industry, along with its challenges and opportunities, and introduced the investment practices of New Journey Health Group while attending the “Pharmaceutical Innovation Summit,” part of the “2022 China Great Health Industry Summit.”

Lin Yanglin stated that the healthcare and traditional Chinese medicine (TCM) industries are undergoing profound transformations. As China’s population growth slows, aging deepens, and the spending power of the elderly strengthens, residents’ demand for high-quality medical services continues to rise steadily. Meanwhile, sustained rapid economic growth and heightened health awareness are driving continuous upgrades in healthcare consumption, with TCM increasingly evolving into consumer-oriented intellectual property (IP).

Meanwhile, the current healthcare and traditional Chinese medicine (TCM) industries harbor significant development opportunities. The implementation of the Healthy China Strategy, the waning impact of the pandemic, accelerating population aging, supportive national policies, and improved productivity in the healthcare sector have all created numerous possibilities for industry growth. Furthermore, as rigid demand for TCM continues to rise, strong momentum has been injected into its development through high-level national attention and competitive investment from governments at all levels.

As a reformer, innovator, and leader in China’s healthcare industry, New Milestone Health Group will adapt to evolving trends, serve national strategies, and build a dual-engine industrial framework driven by both “healthcare services” and “pharmaceuticals.”

In the healthcare services sector, New Milestone Health Group holds controlling interests in and manages nearly 40 hospitals rated at Grade II A or above and 200 primary care medical institutions across nearly 20 provinces and municipalities in China, with a total bed capacity of 30,000. Lin Yanglin stated that New Milestone Health Group will implement a strategic layout of medical institutions centered on regional medical centers. Relying on Grade III A general hospitals, the group aims to build regionally leading hospitals under an innovative “1+N” service model. This approach leverages the service structure of a comprehensive main hospital plus specialized branch hospitals to create innovative advantages through a “one hospital, multiple campuses” model. It focuses on conditions such as oncology, cardiovascular diseases, cerebrovascular diseases, and orthopedics, addressing new demands arising from national population aging. Meanwhile, by aligning with the needs of an aging population and national demographic development plans, the group will meet the healthcare needs of both the elderly and children. It will establish standardized, rapidly replicable specialty development models in areas including oncology, geriatrics, women’s and children’s reproductive health, and addiction and mental health.

The pharmaceutical sector represents the second growth curve that New Milestone Health Group is committed to developing. Leveraging the nationally recognized well-known trademark “Du Yi Wei” as a platform, the Group will integrate upstream and downstream industrial chains, expand its portfolio of health consumer products, and consolidate high-quality industry peers to strengthen and scale up its traditional Chinese medicine (TCM) business. This strategy aims to facilitate the transformation from a pharmaceutical intellectual property (IP) model to a consumer-oriented IP model, thereby upgrading the brand’s core value proposition.