New Milestone Hospital Group Acquires Majority Stake in Jinmei General Hospital to Establish 'Shanxi Model' for SOE Hospital Reform

On December 28, in Jincheng, Shanxi Province, Shanxi Jincheng Anthracite Mining Group Co., Ltd. (hereinafter referred to as “Jinmei Group”) and New Journey Hospital Group held a signing ceremony, jointly announcing that Beijing Guoke New Journey Hospital Management Co., Ltd. (hereinafter referred to as “Guoke New Journey”), the hospital management platform under New Journey Hospital Group, would take a controlling stake in Shanxi Jinmei Group Medical Health Co., Ltd. (hereinafter referred to as “Jinmei Medical Health”).

Jinmei Medical and Health Group operates Jincheng Coal General Hospital, the largest Grade A tertiary hospital in Jincheng City, along with six Grade B secondary and primary hospitals and 17 community health service stations, with a total of approximately 2,000 beds. This day marked the 61st anniversary of the founding of Jincheng Coal General Hospital.

Cao Jianping, Deputy General Manager of Jincheng Anthracite Mining Group, and Lin Yanglin, Chief Executive Officer of New Milestone Hospital Group, signed the agreement on behalf of their respective parties.

Cao Jianping, Deputy General Manager of Jincheng Anthracite Mining Group, and Lin Yanglin, Chief Executive Officer of New Journey Hospital Group, signed the agreement on behalf of their respective parties. Attending the signing ceremony were Sun Shixin, Member of the Standing Committee of the Jincheng Municipal Party Committee and Secretary-General; Wang Hongwei, Vice Mayor of Jincheng Municipal People’s Government; Wu Lebin, Secretary of the Party Committee of Chinese Academy of Sciences (CAS) Enterprises and Chairman of New Journey Hospital Group; Li Hongshuang, Secretary of the Party Committee and Chairman of Jincheng Anthracite Mining Group; Wang Zhiqing, Deputy Secretary of the Party Committee, Vice Chairman, and General Manager of Jincheng Anthracite Mining Group; Fan Linkui, Director of Jincheng Municipal Health Commission; Qin Xiaofei, Deputy Director of the Medical Center of University of Chinese Academy of Sciences; Li Manwen, General Manager of the Enterprise Development Department of CAS Holdings Co., Ltd.; Bai Jianwei, General Manager of CAS Technology Development Investment Co., Ltd.; and Hao Xiaoyun, Head of Business Department I of Shanxi Property Rights Exchange Market.

New Milestone Hospital Group and Jincheng Anthracite Mining Group will commit to transforming Jincheng Anthracite Mining General Hospital into a large-scale Grade A tertiary hospital integrating industry, academia, and research, setting a new benchmark for the reform of state-owned enterprise hospitals in Shanxi Province and across China.

In 1958, Jincheng Coal General Hospital was established. After more than 60 years of development, it has become the largest Grade A tertiary general hospital in Jincheng City. With nearly 2,000 beds, the hospital ranks at an advanced level in Shanxi Province in terms of medical technology, medical staff, hardware equipment, medical environment, and service quality.

Jinmei General Hospital boasts robust disciplinary and technical capabilities, with its surgical system holding a leading position in the region. The hospital comprises over 50 clinical and medical technology departments, including four provincial-level key disciplines such as orthopedics and urology, as well as 27 key specialties designated by Jincheng City.

Jinmei General Hospital also boasts an exceptional team of professionals. The hospital currently employs 1,493 staff members, including 304 with senior professional titles (associate senior level or above), 313 with master’s or doctoral degrees, 180 professors and associate professors, and 28 master’s and doctoral supervisors. Among them are six provincial-level outstanding medical experts, two provincial academic and technical leaders, and one recipient of the State Council Special Allowance. The hospital has one member serving as a standing committee member of a national professional society and six members holding positions of vice chairperson or higher in provincial professional societies.

In 2012, the Jincheng Municipal People's Government and Jincheng Anthracite Mining Group (JAMG) collaborated to establish Jincheng Grand Hospital, under which the hospital also operates under the "Jincheng Grand Hospital" brand. In 2017, JAMG General Hospital established a Medical Doctoral Workstation. Furthermore, JAMG General Hospital serves as a National Standardized Residency Training Base, a General Practitioner Training Base, one of the first nursing assistant training bases in Shanxi Province, one of the first national Clinical Pharmacist Trainee Training Centers, and a Shanxi Provincial Continuing Education Training Base.

Zhao Ruifeng, President of Jincheng Mining Group General Hospital, stated: “By forging a strong alliance with New Journey Hospital Group, one of the largest comprehensive hospital groups in China, and leveraging our complementary strengths, we will further transform our respective advantages in market presence, management, resources, technology, and branding into economic and competitive advantages. This collaboration will propel Jincheng Mining Group General Hospital to develop into a first-class medical center that is ‘research-oriented, platform-based, and internationalized,’ providing comprehensive, full-lifecycle health services to employees and the local community, fulfilling its mine rescue functions, and striving to become a successful model for state-owned enterprises in the province in divesting social responsibilities.”

As a renowned Grade A tertiary hospital in Shanxi Province, Jincheng Mining Group General Hospital has long been at the center of state-owned enterprise (SOE) hospital restructuring. In 2017, Jincheng Anthracite Mining Group initiated hospital reform and reorganization efforts. After negotiations with multiple investment institutions, Jincheng Mining Group General Hospital announced its integration into the New Journey Hospital Group family.

Li Hongshuang, Party Secretary and Chairman of Jincheng Anthracite Mining Group, stated, “Guoke Xinlicheng is a reformer, leader, and innovator in the provision of medical services by social capital. It possesses prominent advantages, extensive experience, and forward-thinking concepts, particularly in hospital restructuring, integration of medical resources, and modern hospital management. Leveraging its influence in academia, technology, scientific research, talent, and brand reputation, it has made significant contributions to the healthy development of China’s healthcare sector. Whether based on complementary strengths or considering the alignment of goals and operational philosophies, Guoke Xinlicheng is an ideal, high-quality, and optimal strategic partner for Jincheng Anthracite Mining Group.”

As one of the largest comprehensive hospital groups in China, New Milestone Hospital Group holds and manages over 10,000 hospital beds, including several large hospitals formerly operated by state-owned enterprises. The group’s controlling investment in Jincheng Anthracite Mining General Hospital not only strengthens its layout of regional medical centers in Shanxi Province but also reaffirms its original commitment to establishing large-scale Grade A tertiary hospitals that integrate industry, academia, and research, following its strategic cooperation with the University of Chinese Academy of Sciences.

In July 2019, New Milestone Hospital Group entered into a tripartite strategic cooperation agreement with the University of Chinese Academy of Sciences (hereinafter referred to as “UCAS”) and Chinese Academy of Sciences Holdings Co., Ltd. (hereinafter referred to as “CAS Holdings”), becoming a practical platform and application base for the translation of scientific and technological achievements from UCAS and CAS Holdings. The group works in close synergy with CAS Holdings and UCAS in the fields of life sciences, health technology, and innovation incubation, aiming to establish a benchmark model for industry-academia-research collaboration in the medical sector.

At the signing ceremony, Wu Lebin, Secretary of the Party Committee of Chinese Academy of Sciences (CAS) Enterprises, stated, “With the support of the University of Chinese Academy of Sciences (UCAS) and CAS Holdings, Jincheng Anthracite Mining Group General Hospital will share UCAS’s brand, academic, and information resources. Moving forward, we will actively work to establish Jincheng Anthracite Mining Group General Hospital as an affiliated hospital of UCAS. With the joint support of all parties involved, the hospital will continue to improve and achieve the goal articulated by Chairman Li Hongshuang of becoming a first-class medical center that is ‘research-oriented, platform-based, and internationalized.’”

Address by Lin Yanglin, CEO of New Journey Hospital Group

Lin Yanglin, CEO of New Journey Hospital Group, stated, “In the face of the substantial healthcare demands driven by population aging and the top-level design reforms resulting from continuous cost-containment measures by medical insurance, New Journey Hospital Group will leverage the shareholder resources of the Guoke system and the brand advantages of the University of Chinese Academy of Sciences. We will provide strategic empowerment to Jinmei General Hospital in areas such as institutional and mechanistic innovation, medical resource export, operational system reform, and brand value enhancement. Our goal is to help Jinmei General Hospital establish an integrated research, education, and production center for translating scientific achievements; a comprehensive medical-elderly care center integrating prevention, control, treatment, rehabilitation, and wellness; and a regional medical center based in Jincheng, radiating across Shanxi Province, with over 3,000 beds. This will create an inspiring career platform, a motivating professional stage, and a deeply resonant emotional arena for colleagues who are willing, capable, and successful in getting things done. The Shanxi folk song ‘People Say Shanxi Has Beautiful Scenery,’ composed in 1959, has been sung across China for the past 60 years. It includes the lyrics: ‘Apricot blossoms bloom in Apricot Blossom Village; our children strive to make the most of their prime years; men fear not a thousand hardships, and women can embroider ten thousand kinds of flowers.’ Today, I share these lines with all my colleagues at Jinmei General Hospital. Let us work together during our prime years to embroider a future filled with boundless possibilities for our hospital.”