Shengzhong Healthcare Redefines Premium Care with Concierge Medicine Model: Files IPO Prospectus

In 1996, the team physician for the NBA’s Seattle SuperSonics shifted from focusing solely on athletic injuries to managing athletes’ overall health, transitioning the payment model from fee-for-service to an annual subscription, thereby establishing the concierge medicine model. Twenty-four years later, concierge medicine has seen rapid growth in the United States. By addressing unmet needs in the current healthcare market, Shengzhong Medical planted the first seed of the concierge medicine model in China in May 2017.

Simply put,Concierge medicine is a premium healthcare model that focuses on delivering “guest-centric,” customized, and personalized medical services. Led by private physicians, it centers on the lifelong health needs of high-net-worth individuals and their families.。

As income levels rise in China, the size of the high-net-worth population is gradually expanding., reaching 2.29 million in 2018, with a compound annual growth rate (CAGR) of 22.3% over the past decade.The inevitable upgrade in demand forces supply-side transformation, while the growing high-income population drives the development of the premium healthcare market.。

According to Deloitte’s 2017 survey on medical satisfaction among Chinese consumers,Only 21% of consumers are satisfied with the current healthcare service system, and they are willing to switch to high-end medical services with better quality. Against the backdrop of deepening healthcare reform, encouraging private investment in healthcare has become an inevitable trend in the development of the medical industry. The limited resources of special-needs wards in public hospitals and the difficulty in securing appointments with top specialists have also created favorable market opportunities for the growth of high-end healthcare.。

“patients don't care how much you know,until they know how much you care.“Chen Ying, co-founder of Shengzhong Medical, told VCBeat that this was a statement made by Cosgrove, former CEO of the Cleveland Clinic and a renowned cardiac surgeon: patients will only appreciate your technical excellence once they perceive your genuine care for them. This principle lies at the core of the concierge medicine model and serves as the guiding star for Shengzhong Medical’s forward journey.”

Chen Ying, Co-founder of Shengzhong Medical

Since the advent of commercial health insurance in China in 2003, Chen Ying has been continuously experiencing and utilizing services provided by private healthcare institutions. However, throughout this process, she identified an unmet need—a critical pain point. In 2017, through ongoing exploration, Chen Ying gradually pinpointed this pain point—Domestic medical institutions have failed to provide customer-centric, customized medical services, and are unable to genuinely acknowledge or understand customer service needs in both form and substance.。

“We want to do something meaningful in the second half of our lives,” said Chen Ying.

In May 2017, the three partners registered Shengzhong Medical. Faced with an as-yet-undefined model for establishing medical institutions, they embarked on their second exploration.

Between May and December 2017, Shengzhong Medical undertook two initiatives. The first initiative,Conducted a comprehensive survey of all private medical institutions in China offering “customized medical services,” providing an in-depth analysis of underserved market segments and the key factors contributing to the success or failure of other private medical institutions.。

The second thing,Chen Ying and the Shengzhong Team Travel to the U.S. to Revisit Their Understanding of “Concierge Medicine”At the Mayo Clinic, they experience customized physical examination programs—the “Executive Health” service. A single physician oversees the entire process, leading everything from targeted in-depth interviews to a comprehensive, personalized health screening plan.This helped Chen Ying grasp the true meaning of “customization.” Meanwhile, she gained a comprehensive understanding of how to establish a hospital, select talent, ensure physicians correctly understand “high-end medical services,” and build IT platforms.。

Second stop: Cleveland Clinic.At Cleveland Clinic, the integrated operational model of its headquarters medical facility and satellite clinics greatly inspired Chen Ying, forming the conceptual foundation for establishing Shengzhong Medical as a clinical healthcare institution.

The third stop: Boston. Through consultations with Partners HealthCare International, the international consulting affiliate of Harvard Medical School’s healthcare system, Shengzhong Medical learned that there is currently no concierge medicine model in China, indicating substantial market potential for establishing such a service.

The three-site tour solidified Chen Ying’s resolve to introduce the concierge medicine model to China.Facing untapped market segments, Shengzhong Medical has laid the groundwork by leveraging its identified development path to establish a premium healthcare service model centered on concierge medicine.

“I have my own legal and financial advisors, who know me best in their respective fields of expertise. Yet, in the area where I need support most—healthcare—I lack a dedicated professional to safeguard my well-being,” said Chen Ying. “The concierge medical service model, led by private physicians, precisely addresses this pain point.”

Under the guidance of the municipal and district Health Commissions, Shengzhong Medical has established a comprehensive outpatient clinic, a membership club, and administrative offices, covering a total area of 2,300 square meters. Shengzhong Medical received approval to officially commence operations on June 6, 2019. On July 13, 2020, it completed its first full year of service for a member, a milestone that served as a key catalyst for enriching service offerings, refining customer service, and improving management tools.

Shengzhong Medical Internal Environment

Chen Ying told VCBeat that Shengzhong Medical recently participated in Fosun’s “Star Future InnoStar” program. She identified three primary reasons for joining the initiative: First, to gain a deeper understanding of the healthcare and medical industry, including a macro-level perspective on various sub-sectors and their collaborative dynamics. Second, as entrepreneurship can often be a lonely journey, Chen sought greater support and inspiration through engagement with more industry peers. Finally, and most importantly, Chen strongly resonates with a statement by Guo Guangchang: “Do the right things, do the difficult things, and do the things that require time to accumulate.” She believes that Shengzhong is precisely engaged in such an endeavor.

Currently, Shengzhong Medical has secured Pre-A round financing.

“We believe the defining characteristic of our institution is our meticulous approach—examining clients’ health risks, potential for health improvement, specific health needs, and family health dynamics with a fine-tooth comb. Through compassion, professionalism, and a comprehensive management system, we gain an in-depth understanding of our clients from the inside out, enabling them to truly set aside their concerns about health issues,” said Chen Ying.

Centered on concierge medicine, Shengzhong Medical provides entrepreneurs and their families with 365-day comprehensive healthcare services through preventive medicine based on general practice and evidence-based medicine, disease diagnosis and treatment, and domestic and international expert referrals. “Prevention, Enhancement, Diagnosis, Treatment, and Rehabilitation” have become the core medical service model of Shengzhong Medical.

Shengzhong Medical’s private healthcare team comprises senior private physicians, mid-level private physicians, senior private nurses, and private nurses. Senior private physicians are chief-level doctors with over 25 years of experience, responsible for providing clients with triage, consultation, referral decision-making, consultation and diagnosis for complex cases, as well as the provision and oversight of health management plans.

Among them, Dr. Liang Zihao, Executive Director and Senior Private Physician at Shengzhong Medical, has over 28 years of experience in clinical practice and hospital management at several renowned hospitals. He is a member of the Institute for Functional Medicine, former Director of the Department of Surgery at the International Diagnosis and Treatment Center of Peking University Cancer Hospital, and former Executive Secretary of the Cancer Prevention and Control Center at Taipei Cathay General Hospital.

Dr. Qing Ye, Head of a New York Clinic and Senior Private Physician, brings over 35 years of clinical experience. He serves as an Attending Physician in Internal Medicine at NewYork-Presbyterian Hospital and as a Special Advisor to the Chair of the Rusk Institute of Rehabilitation Medicine at NYU Grossman School of Medicine. Dr. Ye has extensive experience providing long-term, customized medical services to renowned artists and entrepreneurs from both China and the United States.

Left: Dr. Liang Zihao; Right: Dr. Ye Qing

In addition to the senior private physicians leading each group,Each Shengzhong team is assigned an attending-level physician with over 10 years of experience to serve as a mid-tier private doctor, providing clients with 24/7 disease consultation and diagnostic/treatment services, while coordinating and executing health management plans, thereby acting as the most capable assistant to senior private doctors.。

Meanwhile,The senior private nurses within the team are not only seasoned professionals with over 12 years of experience but also possess extensive experience in serving high-end clients. They seamlessly align client needs with Shengzhong’s resources, conduct regular follow-up visits alongside private nurses, respond to clients’ daily or emergency medical needs, and provide services such as pre-consultation reminders, in-hospital navigation, and out-of-hospital accompaniment for consultations and examinations.。

The model, in which a dedicated private healthcare team serves only 30 member families, not only enhances the quality of medical services but also affords physicians more ample time to provide care to patients.

Unlike the traditional “disease care” model of treating illnesses only after they occur,Shengzhong Medical provides one-stop medical and healthcare solutions, ranging from preliminary assessments to exercise prescription management, functional nutritional interventions, and disease diagnosis and treatment, adopting a healthcare model that emphasizes both preventive medicine and clinical care.。Meeting guests' comprehensive medical and health needs through quantifiable management objectives and actionable management plans。

Shengzhong Medical One-Click Managed Service Model

In preventive medicine,Shengzhong Medical adheres to the guidelines of the U.S. Institute for Functional Medicine (IFM), providing functional nutrition management through precise testing, dietary management, nutrient modulation, and probiotic supplementation to help clients achieve comprehensive health.

Meanwhile, Shengzhong Medical adheres to the guidelines of the American College of Sports Medicine (ACSM), based on assessments of the cardiopulmonary and musculoskeletal systems,Exercise prescriptions are customized for clients by sports rehabilitation physicians, with weekly follow-up by physical therapists (PTs) and athletic trainers to help improve clients’ functional movement capacity and maximal aerobic capacity, thereby achieving optimal health.

Shengzhong Medical Preventive Medicine Management Pathway

In disease diagnosis and treatment, Shengle Outpatient Clinic, a subsidiary of Shengzhong Medical, features 15 specialties and four Centers of Excellence, covering routine consultation needs. Meanwhile, through distinctive service models—including initial consultations with senior private physicians, specialized triage, appointments with renowned specialists, multidisciplinary team (MDT) consultations, and accompanied referral services to well-known medical institutions both domestically and internationally—it provides patients with comprehensive, optimal care plans, thereby minimizing the risks of misdiagnosis and missed diagnosis.

“Dedication and attentiveness” are Chen Ying’s deconstruction and interpretation of high-end healthcare. It is this accurate understanding of high-end healthcare that has enabled Shengzhong Medical to establish its unique operational model and build competitive barriers in areas such as management tools, predictive models, data analytics frameworks, and overseas expert resources.

Premium healthcare addresses patient needs by developing personalized diagnostic and treatment plans, as well as preventive medicine management programs, thereby addressing the shortcomings of public healthcare systems.

It has been over 27 years since 1993, when Dr. Fong Sum-wo, a medical expert hailed as the “Father of Rehabilitation,” jointly established the mainland’s first high-end medical institution with the former Ministry of Health. According to relevant forecasts by Deloitte,Driven by consumption upgrades, policy support, and investor interest, China’s high-end healthcare market will enter a mature phase after 2020.

Shengzhong Medical has positioned itself at a critical juncture in the development of the high-end healthcare market. Chen Ying told VCBeat that Shengzhong Medical consistently treats customer needs as the driving force behind its corporate development, establishing Shanghai as its hub and gradually expanding its reach from first-tier cities to the rest of China. In the future, Shengzhong Medical aims to popularize customized services across China through this top-down model, fostering long-term and sustained trust between patients and physicians, and ensuring that medical services truly return to the essence of healthcare.

Fosun·Xingweilai Research Institute is an incubation and investment platform focused on the big health sector, established by Xingweilai Capital in reliance on Fosun Group and Fosun Pharma. Adopting a “community + incubation + investment” model, it explores frontier innovation fields, focuses on entrepreneurial talent, and secures early-stage investments in future unicorns.

In 2020, the Grand Health Startup Camp launched its second cohort, targeting entrepreneurs in the medical and healthcare sector as well as aspiring innovators. It invited top-tier global mentors and introduced six core incubation modules, offering startup courses with the most robust industrial background and practical experience in China.

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