GuLian Healthcare: Building a Comprehensive Rehabilitation Platform with Over 6,000 Operational and Pipeline Beds in Five Years

Addressing the inadequacy of superficial investment approaches, Xu Chen and Yuan Shuai left Blackstone Group and Morgan Stanley to cultivate the underserved rehabilitation sector. Their primary motivation was to build a business that “enhances quality of life,” generating sustainable, long-term economic returns through steady growth, with the aim of establishing a leading, influential enterprise in China.

“At the time, our friends were very excited to hear that we were going into rehabilitation. Several of them mentioned that their elderly relatives had not received standardized rehabilitation therapy after being discharged from the hospital and remained paralyzed at home, which was deeply regrettable,” said Xu Chen. This was their initial idea: to establish a hospital providing standardized postoperative rehabilitation treatment. However, during subsequent research, they discovered that rehabilitation extends far beyond this. In addition to traditional functional rehabilitation—such as postoperative rehabilitation, neurological rehabilitation, and orthopedic rehabilitation, which are more widely recognized—there are also subspecialties including pediatric rehabilitation, geriatric rehabilitation, and critical care rehabilitation.

They also recognize that patients with functional impairments are a diverse group with comprehensive needs for medical service models. Patients in the acute phase, such as those in the Intensive Care Unit (ICU), require support from intensive or critical care units to facilitate early rehabilitation intervention. In contrast, pediatric rehabilitation patients, those who have completed phased rehabilitation treatment, and certain pain management patients do not require hospitalization and can receive outpatient rehabilitation services at varying frequencies. For elderly rehabilitation patients, addressing their multimorbidity, disability, and functional decline necessitates long-term inpatient services that integrate medical care, nursing, and rehabilitation therapy. Furthermore, since rehabilitation patients span all age groups, rehabilitation inherently involves the family unit. Capitalizing on this trend, Glorious Union has introduced the concept of whole-family rehabilitation management to enhance synergy across its business operations.

“The rationale for developing comprehensive and diversified rehabilitation services includes covering services that address patients’ genuine essential needs, strengthening interdisciplinary synergy across business units, mitigating policy and market risks associated with single-product reliance, adapting to regional variations in disease spectra and degrees of population aging, and balancing the group’s overall proportion of out-of-pocket payments versus health insurance reimbursements,” Xu Chen provided a more in-depth explanation of the business layout.

To date, Gulian has become China’s first comprehensive rehabilitation medical platform that covers full-spectrum rehabilitation needs (with geriatric rehabilitation as the foundation, functional rehabilitation as its specialty, critical care rehabilitation as the core, and community-based medical-nursing integration as the link), offers a continuum of healthcare services (including home nursing stations, clinics, rehabilitation hospitals, and geriatric hospitals), and provides whole-family health management services (for children, adults, and the elderly). Its current operational footprint spans Southwest, East, and Central China, with over 6,000 beds either in operation or under construction.。

Xu Chen, Co-founder and Co-CEO of GuLian Medical

How has Gulian Healthcare developed? What is its expansion logic? What lessons and insights have they gained in terms of service? With these questions in mind, Xu Chen shared with VCBeat (WeChat ID: vcbeat) their “highlights and experiences” over the past five years.

In early 2015, after conducting two years of research into the rehabilitation industries in China and overseas, Xu Chen and Yuan Shuai founded Gulian Medical in Shanghai.

“Founder with a ‘returnee + private equity’ background, a 100,000-word business plan, and the market size of the rehabilitation industry” were among the factors that enabled Gulian Medical to secure $2 million in angel investment in 2015, formally entering China’s rehabilitation healthcare market.

In the same year, after evaluating factors such as policy support, rehabilitation awareness, costs, and talent availability, GuLian Medical determined the location for its first hospital—Chengdu GuLian Rehabilitation Hospital—at the International Medical Health Center near Chengdu East Railway Station in Chenghua District, Chengdu. The hospital is committed to becoming the first international specialized rehabilitation hospital in Southwest China to introduce advanced rehabilitation concepts, models, and technologies from Hong Kong.

During the orderly preparatory phase of Chengdu Gulian Rehabilitation Hospital, Xu Chen and Yuan Shuai were also conducting ongoing assessments of the Chengdu market. Coincidentally, the Chengdu Geriatric Care and Therapy Hospital, one of the first batch of Grade II Class A specialized hospitals for geriatric diseases in Sichuan Province, was seeking equity cooperation. Gulian Medical articulated the importance of its geriatric rehabilitation segment within the broader spectrum of comprehensive rehabilitation needs, thereby impressing the hospital’s administration.Acquired the controlling stake in this 400-bed, Grade II-A specialized geriatric hospital at the end of 2016.。

Alongside the acquisition of the elderly care and rehabilitation facility, a pediatric rehabilitation outpatient project is also underway. Xu Chen told VCBeat, “Our original plan was to map out the outpatient clinic chain after the hospital was completed. However, due to various reasons, the handover of the hospital building was delayed. By that time, our team was already in place, so we seized the opportunity to launch the outpatient services first.”

In late 2016, the Wuhou Sub-center of Guilian Mango Children’s Health Center commenced operations. It is reported that the center took only three months from project initiation to operational launch. The project has already achieved profitability and initiated chain expansion, with the Chengdu High-Tech Zone Sub-center now open.

The establishment of rehabilitation hospitals and pediatric rehabilitation outpatient clinics, the acquisition of a geriatric hospital, and the associated investments in building a chain operation platform prompted Guilian Medical to initiate its next round of financing. As early as 2015, among its angel investors were Mr. Antony Leung, former Financial Secretary of Hong Kong and Chairman and Co-founder of New Frontier Health Group, and Mr. Wu Qinan, CEO and Co-founder of New Frontier Health Group. This early involvement laid the groundwork for subsequent collaboration between Guilian Medical and New Frontier Health Group.

In April 2017, Guilian Healthcare entered into a strategic partnership with New Frontier Health. In August of the same year, New Frontier Health announced an additional RMB 1 billion in strategic investment, becoming the controlling shareholder of Guilian Healthcare.. In November 2017, Chengdu Gulian Rehabilitation Hospital, specializing in critical care rehabilitation and functional rehabilitation as its key disciplines, obtained its medical institution practice license and officially commenced operations in March of the following year. Gulian Healthcare has initially established a business framework with geriatric rehabilitation as its foundation, functional rehabilitation as its specialty, and critical care rehabilitation as its core.

With capital support and the initial formation of its core business model, Goo-Lian Medical faced strategic imperatives for expansion. Throughout 2018, the Strategic Investment Department of Goo-Lian Medical conducted in-depth research in southwestern provinces and municipalities, including Sichuan, Chongqing, Yunnan, and Shaanxi, with plans to expand into critical care rehabilitation, functional rehabilitation, and geriatric rehabilitation services. After rigorous screening, the first-phase construction projects were determined to be: the Chengdu Geriatric Care and Therapy Hospital Branch, the Tianfu New Area Health and Wellness Medical Center, and the Mianyang Goo-Lian Geriatric Hospital.

Xu Chen stated, “Our initial step is to deepen our presence in Sichuan, primarily driven by considerations of medical synergy, while also laying the foundation for future expansion across Southwest China.” Notably, leveraging the premium medical resources of its affiliated healthcare institutions, Gulian Medical has developed a community-based integrated medical and elderly care service platform. This platform mainly provides public-welfare services to senior residents in communities, including health monitoring, complimentary guidance on integrated medical and elderly care, convenient care-related activities, and expedited access to medical services through green channels. In addition, Gulian has engaged in multifaceted collaborations with Edekang, a chain brand of medical caregiving under New Frontier Tiantian, focusing on community and home-based care services.

With the implementation and operation of the Sichuan project,In late 2018, the East China Investment and Development Department of GooLian Medical was established in Shanghai, marking its formal entry into the East China market.. Xu Chen explained, “On the one hand, multiple factors in East China, including population aging, policy support, and economic conditions, are favorable; on the other hand, our sister company, Yidekang, has achieved strong development in East China, enabling close collaboration among us.”

In August 2019, Guilian Healthcare entered into a strategic partnership with Hekang Healthcare, acquiring a controlling stake in Hekang’s entire rehabilitation medical division. This portfolio includes four fully constructed and operational rehabilitation hospitals in Hangzhou with approximately 2,000 beds, as well as future rehabilitation hospitals planned for new construction or acquisition, positioning it as the largest provider in Zhejiang Province’s rehabilitation healthcare services sector. Since then, Guilian Healthcare has formally expanded into East China while simultaneously initiating its presence in Central China. Currently, multiple projects in East China are under development.Among them, the Jinhua Gulian Jinfan Rehabilitation Hospital in Jinhua City, Zhejiang Province, with approximately 500 beds, is expected to open by the end of 2020.。

Rehabilitation talent is the core factor constraining the development of the rehabilitation industry, as well as the intrinsic driving force for the sustainable growth of rehabilitation enterprises.To ensure the technical competence of rehabilitation professionals and address the issue of inconsistent quality among them, Gulian Medical has established the Gulian Academy.。

Gu Lian Academy, guided by the corporate culture of Gu Lian Medical, is committed to providing high-quality training for Gu Lian employees, facilitating comprehensive improvement in their competencies and professional knowledge. The Academy offers tailored curricula for employees at various levels and industry participants, including onboarding programs for new hires, foundational skills courses, management trainee programs, leadership development courses, and specialized clinical training.

Guilian Academy has partnered with several renowned institutions, including the Department of Rehabilitation Sciences at The Hong Kong Polytechnic University, Caritas Institute of Higher Education, and Sichuan Nursing Vocational College, inviting distinguished experts from Hong Kong to deliver cutting-edge international rehabilitation courses for Guilian and rehabilitation professionals across China. For instance, all core therapists at Chengdu Guilian Rehabilitation Hospital have obtained certification through the Guilian Academy–The Hong Kong Polytechnic University training program.

To further promote standardized training for therapists in the rehabilitation industry, Gulian Academy and Kunming Medical University jointly launched the first cohort of the Standardized Training Program for Rehabilitation Therapists in 2020. This marked the first such standardized training program for rehabilitation therapists in China to be conducted through a university-enterprise partnership. Through an eight-month, standardized, and systematic curriculum, the program comprehensively enhanced the standardized operational procedures and clinical skills of rehabilitation therapists.

“From the initial conception of establishing a standardized residency training program for therapists two years ago, to the implementation of two phases of therapist training projects in collaboration with the Department of Rehabilitation Sciences at The Hong Kong Polytechnic University in 2018, and further to last year’s in-depth discussions with Professor Ao Lijuan, Vice Dean of the School of Rehabilitation at Kunming Medical University, regarding the concept and necessity of a ‘Bridging Course’ that connects academic education with clinical practice, Guilian has been continuously exploring how to design a residency training program that not only enables therapists to meet Guilian’s standards but also aligns with academic regulations and reflects international perspectives. We are eager to contribute our own insights to the industry,” said Xu Chen in an interview following the launch of the course.

It is worth mentioning that,In addition to a local full-time team of medical experts, GuLian Healthcare has also engaged senior advisory teams from both domestic and international sources. Together with New Frontier Health’s rehabilitation advisory team, they provide strategic guidance on GuLian’s development strategy, discipline construction, and medical quality.。

As of now,New Frontier Healthcare, a subsidiary of New Frontier Group, owns seven medical brands: United Family Healthcare, Borderless Medical, E-Deacon, Peiyun Precision Medicine, Gulian Healthcare, Xiyu Oncology Center, and New Frontier Shenzhen International Hospital. New Frontier Group has become one of the largest private healthcare groups in China.。

Xu Chen stated that the team at New Frontier Health is relatively unique within the industry. Spanning from Mr. Liang Jinsong and Mr. Wu Qinan at the top level of New Frontier Group, to the two founders with overseas education and investment backgrounds, and further extending to the medical professionals and management talent, it is a highly diversified team that integrates expertise in healthcare, industry, and finance. In terms of age demographics, the team consists largely of young professionals, bringing vitality and energy to the organization.

Xu Chen told VCBeat that such a diversified team brings together strategic thinking, operational capabilities, discipline development, and fundraising prowess. For example, in the early stages of its development, the company initiated the establishment of teams and systems for chain hospital operations, creating a “Gulian Management Model” encompassing medical quality, discipline development, process management, data analytics, decision-making mechanisms, financial management, and centralized procurement. “From the moment we decided to build a first-class comprehensive rehabilitation healthcare platform, we recognized that standardized systems and chain operation capabilities were crucial for our nationwide expansion in China, necessitating upfront investment in their development,” Xu Chen explained.

It is understood that GuLian Medical continuously researches and updates its talent strategy to support the company’s rapid development. Through the implementation of this strategy, the company conducts in-depth analyses of issues related to talent development and formulates a comprehensive set of short-, medium-, and long-term solutions for attracting, acquiring, and retaining talent. This approach strengthens the recruitment of committee-chair-level discipline leaders, core and senior technical professionals, and management talent from regional to national levels, thereby establishing a talent structure characterized by industry-leading senior experts, a sustainable pipeline of mid-level core personnel, and a robust supply of entry-level talent.

Xu Chen noted that the selection process between talent and companies is mutual. Today’s experts possess open mindsets, are willing to embrace emerging trends, and seek out organizations that are dynamic, innovative, and compliant. Over the past five years, GooLian has gradually established its brand within the industry, with its substantial investments in talent development and disciplinary construction being widely recognized. The company has also recently introduced multi-tiered incentive programs. Ensuring that experts recognize GooLian as a strong platform and experience its excellence firsthand after joining is key to attracting and retaining top talent.

In terms of specific services, Gulian Medical has introduced international rehabilitation concepts to provide patients with effective treatment and more humanized care.

Xu Chen explained that true rehabilitation is a long-term, meticulous service that comprehensively considers factors such as the patient’s social roles, lifestyle habits, and personal interests to formulate an overall treatment plan, thereby helping patients reintegrate into normal social life.

To precisely identify the causes of patients' functional impairments and overcome the limitations of single-discipline diagnostics, Gulian has established a multidisciplinary team comprising specialists in neurology, neurosurgery, orthopedics, critical care medicine, cardiology, traditional Chinese medicine, and clinical nutrition. The team conducts Multidisciplinary Team (MDT) joint consultations and rehabilitation assessments tailored to patients' clinical conditions. By integrating patients' lifestyle and occupational needs with their rehabilitation expectations, the team employs a task-oriented approach to facilitate rehabilitation treatment. This strategy accelerates functional recovery, reduces disability rates and medical costs, and enables patients to return to their families and society as early as possible.

Gulian emphasizes multidisciplinary collaboration, focusing on holistic rehabilitation to ensure alignment among rehabilitation goals, treatments, and expected outcomes. Patient-centered, Gulian has established nine interdisciplinary teams comprising rehabilitation physicians, physical therapists, occupational therapists, speech therapists, psychotherapists, dietitians, nurses, rehabilitation engineers, and traditional Chinese medicine rehabilitation therapists, providing patients with personalized rehabilitation medical services that align with international standards.

To systematically enhance discipline construction and academic research capabilities in support of hospital development and team growth, Guilian Healthcare established the Guilian Research Institute, assembling top-tier expert teams from both China and abroad to carry out discipline development and academic research. Currently, the institute is conducting nearly 20 research projects, including General Program projects funded by the National Natural Science Foundation of China and key provincial special projects. All hospitals under the Guilian Group are required to actively strive for designation as provincial or municipal key disciplines and to establish affiliations with renowned universities across China as teaching hospitals.

“Our humanistic healthcare philosophy is centered on empathy for patients,” emphasized Xu Chen. Most rehabilitation patients have already undergone treatment at the hospital for a period of time, and their functional impairments have disrupted their normal lives. As a result, they often feel more anxious and desire greater social engagement. Therefore, the GooLian Medical team proactively encourages patients, patiently addresses their questions, and guides them to take a more active role in their rehabilitation, ultimately helping them truly rebuild their lives.

In the future, GuLian Healthcare will continue to pursue its development strategy of “Excellence in Rehabilitation and Humanistic Care,” deepen its presence in the rehabilitation market, and establish itself as a top-tier rehabilitation brand in China. Xu Chen stated that in 2020, GuLian Healthcare had already determined its strategy to focus on Southwest and East China while expanding into Central China. By combining new construction with mergers and acquisitions, and leveraging the “Three Centers and One System” framework, the company will build rehabilitation medical centers in the three major regions—Southwest, East, and Central China—to fulfill integrated responsibilities in medical care, education, and research. Furthermore, it will systematically develop a talent development strategy, quality control standards, an operational management model, a discipline construction system, and project expansion criteria, thereby advancing toward its goal of becoming a leading Chinese rehabilitation healthcare service platform characterized by technological leadership, high-quality services, patient trust, and social satisfaction.