New Milestone Hospital Group Expands in Shanxi with Acquisition of Four Hospitals from Jiaomei Group, Reaching 5,300 Inpatient Beds
On December 25, in Taiyuan, Shanxi Province, three subsidiaries of Shanxi Coking Coal Group Co., Ltd. (hereinafter referred to as “Coking Coal Group”) held a signing ceremony with Beijing Guoke New Milestone Hospital Management Co., Ltd. (hereinafter referred to as “Guoke New Milestone”), the hospital management platform under New Milestone Hospital Group.
Lin Yanglin, CEO of New Milestone Hospital Group; Li Jian, Party Secretary and Chairman of Xishan Coal Electricity; Fan Xinmin, Party Secretary and Chairman of Fenxi Mining; Rong Shengquan, Party Secretary and Chairman of Huozhou Coal Electricity; Du Shejiao, Chairman of Taiyuan Xishan Hospital Company; Shi Duanqing, Chairman of Gujiao Xishan Hospital Company; Zhou Feng, Chairman of Fenxi Mining Group Hospital Company; and Gao Guangjun, Chairman of Huozhou Coal Electricity General Hospital Company, signed the agreement on behalf of their respective parties.
△At the signing ceremony, Gao Chunyi, Member of the Party Committee and Deputy General Manager of Shanxi State-owned Assets Operation Co., Ltd.; Wu Lebin, Chairman of CAS Venture Capital and Chairman of New Journey Hospital Group; Chen Xuzhong, Deputy Secretary of the Party Committee, Vice Chairman, and General Manager of Coking Coal Group; Li Tangsuo, Deputy General Manager of Coking Coal Group; Jiang Lei, General Manager of CAS Innovation Incubation Investment Co., Ltd.; Cao Wenhui, Chief Talent Officer of New Journey Hospital Group; Li Shufeng, Vice President of New Journey Hospital Group; and other attendees witnessed the signing.
All parties jointly announced that the medical institutions under Coking Coal Group have successfully completed their restructuring. Guoke New Milestone Holdings has invested in and taken controlling stakes in the General Hospital of Employees of Xishan Coal Electricity (Group) Co., Ltd. (hereinafter referred to as “Xishan General Hospital”), the Gujiao Mining Area General Hospital of Xishan Coal Electricity (Group) Co., Ltd. (hereinafter referred to as “Xishan Gujiao Hospital”), the General Hospital of Employees of Fenxi Mining Industry, and the General Hospital of Huozhou Coal Electricity Group (hereinafter referred to as “Huomei General Hospital”).
These four hospitals are located in Taiyuan and Gujiao (a county-level city under the administration of Taiyuan) in Shanxi Province, as well as in Jiexiu City and Huozhou City. They oversee 24 branch hospitals and 37 community health service stations/centers, with a total of 3,300 beds and an annual outpatient volume of approximately 900,000 visits.
Since then, New Journey Hospital Group’s controlled bed capacity in Shanxi Province has reached 5,300 beds, covering multiple cities across southern, northern, and central Shanxi. Its managed medical institutions span provincial, municipal, and county levels, establishing a comprehensive presence throughout the province. As a leading large-scale integrated healthcare group in China, New Journey Hospital Group controls nearly 20,000 beds nationwide.
△Coking Coal Group
Shanxi Coking Coal Group is one of the largest state-owned enterprises in Shanxi Province, the nation’s largest producer and processor of coking coal, and China’s largest supplier in the coking coal market, ranking among the Fortune Global 500. The Group oversees 27 subsidiaries and branch companies, as well as three A-share listed companies: Xishan Coal Electricity Power Co., Ltd., Shanxi Coking Co., Ltd., and Nanfeng Chemical Industry Co., Ltd., with total assets amounting to RMB 355.6 billion.
The hospitals signing the agreement are Xishan General Hospital and Xishan Gujiao Hospital, subsidiaries of Xishan Coal Electricity under the Coking Coal Group; Fenxi Mining’s Fenshuang General Hospital; and Huozhou Coal Electricity’s Huomei General Hospital. These four hospitals collectively oversee 24 branch hospitals and 43 health service stations/clinics, with a total of 3,300 beds and an annual outpatient volume of approximately 900,000 visits. Among them, Xishan General Hospital is a Grade III Class B general hospital with 1,154 open beds and around 1,500 staff members, 31% of whom hold senior professional titles. The hospital’s new building for outpatient, emergency, and inpatient services was put into operation in February 2018.
Li Tangsuo, Deputy General Manager of Shanxi Coking Coal Group, provided an overview of the restructuring and reorganization of the group’s medical institutions. He stated that, with strong support from the Shanxi State-owned Assets Operation Company, Shanxi Coking Coal Group conducted extensive due diligence and comparative assessments of various models before selecting its strategic partner. The group ultimately chose New Milestone Hospital Group as the investor. This decision not only marked a critical milestone in completing the corporate restructuring of the group’s healthcare subsidiary but also aimed to achieve “triple satisfaction”—ensuring satisfaction among healthcare staff at all levels, safeguarding the rights and interests of all stakeholders, and meeting the needs of residents in mining communities. Furthermore, this choice was made to secure the long-term, stable development of the affiliated medical institutions.
Li Jian, Party Secretary and Chairman of Xishan Coal Electricity, stated, “The signing marks the beginning of substantive cooperation, signifying that we have reached a consensus on our intentions, will join hands for in-depth collaboration, and seek mutual benefits and win-win outcomes. Moving forward, Shanxi Coking Coal Xishan Coal Electricity will diligently carry out the following tasks: unwaveringly deepen healthcare system reforms; fully and faithfully implement the terms of the agreement; and make every effort to maintain overall harmony and stability.”
Fan Xinmin, Secretary of the Party Committee and Chairman of Fenxi Mining Industry Group, stated that today’s signing ceremony marks the entry of the group’s medical institutions into the implementation phase of their transfer. This move is conducive to achieving sustainable development for medical institutions under Shanxi Coking Coal Group, preserving and increasing the value of state-owned assets, safeguarding the legitimate rights and interests of employees, and better providing high-quality medical and healthcare services to the local community where the hospital company is located, as well as to the families of Fenxi Mining Industry Group employees.
Rong Shengquan, Party Secretary and Chairman of Huozhou Coal Electricity, stated: “As one of the largest comprehensive hospital groups in China, New Journey Hospital Group is a reformer, leader, and innovator in the healthcare services sector, possessing prominent advantages and extensive experience particularly in medical resource integration and modern hospital management. It is our ideal, high-quality, and optimal strategic partner. Through equity cooperation that unites two industry leaders, we can introduce advanced management concepts and mechanisms, enhance the level of hospital medical services, and contribute to building a Healthy Coking Coal.”
Lin Yanglin, CEO of New Milestone Hospital Group, stated that by partnering with Jiaomei Group, New Milestone will provide strategic empowerment to the medical institutions under Jiaomei Group in areas such as institutional and mechanistic innovation, export of medical resources, and enhancement of operational management. This initiative aims to strengthen the leadership team’s sense of direction, boost the well-being of middle-level cadres, and instill hope among ordinary staff. Facing the opportunities presented by surging healthcare demands due to population aging, as well as the cost-control challenges posed by continuous containment measures in medical insurance payments, New Milestone Hospital Group will leverage the brand resources of the University of Chinese Academy of Sciences (UCAS). The group aims to elevate Xishan Coal Electricity General Hospital to a Grade 3A hospital, subsequently transforming it into an affiliated hospital of UCAS and a platform for the translation of scientific and technological achievements. Furthermore, it will drive Gujiao General Hospital, Fenxi Mining Industry General Hospital, and Huozhou Coal Electricity General Hospital to develop into endogenous tertiary care systems characterized by integrated services in “prevention, control, treatment, rehabilitation, and elderly care.” This effort seeks to provide colleagues who are motivated, capable, and results-oriented with an inspiring career platform, a motivating professional stage, and an emotionally resonant environment.
Wu Lebin, Chairman of CAS Venture Capital and Chairman of New Journey Hospital Group, stated that Shanxi has become the most important regional medical center for New Journey Hospital Group, and creating a model for the restructuring of state-owned enterprise (SOE) hospitals in Shanxi has become a key future development goal for the group. It is believed that under the joint leadership of New Journey Hospital Group and Coking Coal Group, these four hospitals will fully leverage the brand advantages of the University of Chinese Academy of Sciences and opportunities for translating scientific research achievements into practice, once again setting an exemplary model of innovative healthcare through “premium-premium combination and strong-strong alliance,” as well as serving as a benchmark for SOE hospitals.
Chen Xuzhong, Deputy Secretary of the Party Committee, Vice Chairman, and General Manager of Shanxi Coking Coal Group, stated, “The cooperation between Shanxi Coking Coal Group and New Milestone Hospital Group was established after extensive evaluations and comparisons. We examined the reforms of medical institutions affiliated with several major enterprises in the province, particularly drawing reference from Jincheng Anthracite Mining Group (Jinmei Group), which has partnered with New Milestone for one year. We have observed very positive development at Jinmei General Hospital, which has further strengthened our confidence in collaborating with New Milestone.”
"This collaboration between our two institutions fundamentally establishes a solid foundation—both institutionally and mechanistically—for enhancing the quality of medical care for mining area employees. Post-collaboration, the hospital will be better positioned to implement specialized management, injecting strong momentum into the development of healthcare services and the elevation of medical service standards. It will also maximize improvements in the healthcare environment for local residents and mining area employees, thereby delivering higher-quality medical services."
Gao Chunyi, a member of the Party Committee and Deputy General Manager of Shanxi State-owned Capital Operation Co., Ltd., stated in his speech: “Today’s signing marks a new milestone for the healthcare institutions under Coking Coal Group as they embark on a path toward diversified ownership. Both shareholders are outstanding and bring their respective strengths to the table: New Journey brings expertise in technology, capital, and management models, while Coking Coal Group is China’s largest producer and processor of coking coal. The strong alliance between these two shareholders will enhance the scientific operational standards and efficiency of the hospitals, particularly by advancing medical technologies, thereby benefiting the local community and fostering a greater sense of well-being and fulfillment among residents. We have every reason to believe that this signing is merely the beginning; through the robust collaboration of these two exemplary shareholders, the future of Coking Coal Group’s healthcare institutions in Shanxi will undoubtedly be brighter.”
In December 2019, New Journey Hospital Group signed an agreement with Shanxi Jincheng Anthracite Coal Mining Group Co., Ltd. to acquire a controlling stake in Jincheng General Hospital, the largest Grade A tertiary hospital in Jincheng City, along with six secondary and primary branch hospitals and 17 community health service stations, bringing the total number of beds to approximately 2,000.
One year later, New Milestone Hospital Group further deepened its presence in Shanxi by acquiring controlling stakes in four hospitals under the Coking Coal Group, thereby establishing a network comprising 5 general hospitals, 30 branch hospitals, and 54 community health service stations (clinics), with a total bed capacity of 5,300.
Lin Yanglin, CEO of New Milestone Hospital Group, stated that amidst the sweeping tide of Shanxi’s state-owned enterprise (SOE) reforms—characterized by “fundamental changes,” “institutional breakthroughs,” and “governance establishment”—New Milestone Hospital Group is actively advancing collaborations with medical institutions at the prefecture-level cities across Shanxi Province. The group aims to achieve a holding capacity of 10,000 hospital beds within the province in the near term, thereby establishing a genuine provincial regional medical center and setting a benchmark for SOE hospital reform. Through systemic and institutional reforms, traditional SOE hospitals and every micro-entity within them can revitalize, unleash productivity, stimulate creativity, unlock vitality, and activate intrinsic motivation. This represents the greatest value of reform.