Julu Healthcare Management Files IPO Prospectus to Advance Integrated Cardiopulmonary Rehabilitation Solutions

According to a report released by Qianzhan Industry Research Institute, the market size of rehabilitation medical services in China was approximately RMB 38 billion in 2017. With growing awareness of the importance of rehabilitation, the rehabilitation market holds substantial room for growth. If the 200 million middle- and high-income individuals in China were to achieve the same per capita rehabilitation expenditure as in the United States (USD 80 per person), the future market size is expected to exceed RMB 100 billion.

With the rapid development of the industry, the rehabilitation sector has evolved from single products to product portfolios and ultimately to comprehensive solutions. Beijing Julu Medical Management Consulting Co., Ltd. (hereinafter referred to as “Julu Medical Management”) has established a cardiopulmonary chronic disease rehabilitation service system by focusing on cardiopulmonary chronic disease rehabilitation management systems, research and development transformation of related rehabilitation products, operation of cardiopulmonary rehabilitation centers, and specialized training for cardiopulmonary physical therapists.

Since its inception, Julu Medical Management’s comprehensive solution for cardiopulmonary chronic disease rehabilitation management has been implemented in more than 10 hospitals and elderly care institutions across China, earning consistent acclaim from major hospitals. What are the distinctive features of this system? Which pain points of hospitals and physicians does it address? How is it deployed? To answer these questions, VCBeat interviewed Xu Changjun, Founder and Chairman of Julu Medical Management.

Cardiopulmonary Chronic Disease Rehabilitation is a rehabilitation system centered on a novel medical service model characterized by multidisciplinary collaboration and active patient participation, with the goal of maximizing functional improvement. The system comprises a multidisciplinary team (MDT) of experts (including rehabilitation physicians, physical therapists, exercise therapists, and dietitians), an assessment framework, physical therapy modalities, a monitoring system, nutritional products, and adherence management.

Xu Changjun emphasized, “Julu Medical Management is a medical management service consulting firm, not a single-product manufacturing factory.” As an institution supporting and operating rehabilitation systems, Julu Medical Management focuses on modern rehabilitation combined with traditional rehabilitation. It is dedicated to providing hospitals and nursing homes with a cardiopulmonary chronic disease rehabilitation management system comprising talent training, product research and development, and a cardiopulmonary rehabilitation management system. This has led to the formation of Julu Medical Management’s proprietary 5P3S1C framework, tailored for China.

5P: Preventive, Predictive, Personalized, Participatory, Precision Medicine

3S: SPIN Project Analysis, SCRP Project Operations, STP Market Scanning

1C: Collaborative Self-Management (CSM): A Multidisciplinary Cardiopulmonary Rehabilitation Management System

Beijing Julu Medical Management Consulting Co., Ltd. is dedicated to providing two core services for cardiopulmonary rehabilitation professionals: advanced training and technical delivery. The company has collaborated with Xiangya Hospital, Beijing Rehabilitation Hospital of Capital Medical University, and China-Japan Friendship Hospital to organize multiple academic exchanges for cardiopulmonary physical therapists. Additionally, it has conducted numerous professional training programs in partnership with the China Association for Promotion of Rehabilitation Technology Transformation and Development and the Department of Physical Therapy at New York University, thereby establishing a platform for clients to learn advanced rehabilitation techniques.

Julu Medical Management will assist partner hospitals, communities, and elderly care institutions in assigning staff to top-tier hospitals across China for advanced training based on their job responsibilities. Moving forward, Julu Medical Management plans to engage in in-depth collaboration with a Shanghai-based academic institution to jointly cultivate professionals in cardiopulmonary rehabilitation.

Beijing Julu Medical Management Consulting Co., Ltd. is guided by standardized and regulated cardiopulmonary rehabilitation processes, providing products to partner hospitals centered on the key stages of cardiopulmonary rehabilitation to meet the needs of diverse clinical institutions in delivering cardiopulmonary rehabilitation services.

In accordance with the cardiopulmonary rehabilitation workflow, the products managed by Julu Medical can be categorized into assessment-type (cardiopulmonary exercise testing system, 6-minute walk test kit, physical fitness assessment system, basal metabolic rate detection vehicle, etc.), exercise rehabilitation-type (exercise control system software, rehabilitation ergometer, balance training system, muscle strength training equipment, resistance tubes/bands, etc.), and respiratory rehabilitation-type (respiratory muscle assessment/training device, positive expiratory pressure vibration expectoration device, respiratory muscle trainer, etc.).

Xu Changjun stated: “Julu Medical Management has also established a horizontal collaboration platform to build partnerships and facilitate the distribution of certain high-end imported products, such as 24-hour continuous glucose monitoring systems, ambulatory ECG devices, blood pressure monitors, and respiratory muscle training equipment, thereby meeting the needs of more customers and patients.”

Julu Medical Management’s CSM Multidisciplinary Collaborative Cardiopulmonary Rehabilitation Management System provides hospitals with a comprehensive, pragmatic clinical pathway solution, encompassing cardiopulmonary rehabilitation department facility design, standardized software and hardware process management, and promotional materials, thereby enhancing overall departmental capabilities and improving patient adherence.

“Cardiopulmonary rehabilitation is a holistic approach; only by establishing a systematic framework can patients truly appreciate its benefits and efficacy,” said Xu Changjun. Currently, the company’s management system for cardiopulmonary chronic disease rehabilitation already meets clinical demands and possesses robust capabilities in medical technology delivery and the development of rehabilitation departments.

CSM Multidisciplinary Collaborative Cardiopulmonary Rehabilitation Management System (Image provided by the enterprise)

Currently, China’s rehabilitation market is dominated by traditional rehabilitation services, which primarily target individuals with physical disabilities; this group accounts for only 9% of the rehabilitation market. Cardiopulmonary rehabilitation mainly serves patients with chronic diseases and the elderly population, who represent 38% and 53% of the rehabilitation market, respectively.

The primary beneficiaries of cardiopulmonary rehabilitation are patients with cardiopulmonary-metabolic disorders, such as post-cardiac surgery patients and those with severe chronic obstructive pulmonary disease (COPD). Data provided by Beijing Julu Medical Management Consulting Co., Ltd. shows that the total number of patients in China with cardiopulmonary-metabolic conditions (heart disease, lung disease, and type 2 diabetes) exceeds 500 million, equivalent to one in every 2.6 people. Among them, approximately 200 million are post-cardiac surgery patients or individuals with severe COPD. This vast patient population has driven the continuous expansion of the cardiopulmonary rehabilitation market, with leading institutions such as Xiangya Hospital and Fuwai Hospital actively exploring implementation models for cardiopulmonary rehabilitation services. As of the end of 2017, there were more than 700 cardiopulmonary rehabilitation centers in China.

As the rehabilitation market gradually became clearer, Xu Changjun, who had worked at Sanjiu Pharmaceutical for ten years and had a successful entrepreneurial experience, seized the opportunity and established Julu Medical Management in 2015. At the beginning, the company did not focus on the chronic disease management system for cardiopulmonary rehabilitation; instead, its goal was to establish cardiopulmonary rehabilitation centers. However, Xu Changjun soon realized that this approach was not viable. He stated, “Although China’s cardiopulmonary rehabilitation market holds promising prospects, it is still in its early stages of development and faces numerous pain points.”

“Shortage of talent, lack of carrier equipment, and absence of a systematic framework.” Xu Changjun summarized the three major pain points of cardiopulmonary rehabilitation in China.

“There are only about 500 specialized cardiopulmonary physical therapists in China. Conservatively estimated, the shortage of cardiopulmonary physical therapists in China is 50,000. Relevant rehabilitation equipment for cardiopulmonary rehabilitation is also severely lacking domestically; there are no systematic enterprises in China developing equipment for acute and critical care cardiopulmonary rehabilitation, while foreign equipment is expensive and cannot be applied on a large scale,” said Xu Changjun.

“These pain points prevented Julu Medical Management from establishing its cardiopulmonary rehabilitation center. Forced by circumstances, Julu Medical Management began to build its own talent training system, develop equipment, and create a management system for the rehabilitation of chronic cardiopulmonary diseases.”

After an unsuccessful attempt to directly establish a cardiopulmonary rehabilitation center, Julu Medical Management shifted its focus in 2017 to building a management system for the rehabilitation of chronic cardiopulmonary diseases.

In 2017, Julu Medical Management collaborated with Academician Wang Chen from China-Japan Friendship Hospital to successfully commercialize its patented CSM Cardiopulmonary Rehabilitation Management System. Subsequently, the company initiated hardware research and development, partnering with Professor Feng Xue from the Cardiac Rehabilitation Center of Fuwai Hospital, Professor Xu Danping from Guangdong Provincial Hospital of Traditional Chinese Medicine, Professor Guo Qi, Director of the Department of Rehabilitation at Tianjin Medical University, and Professor Liu Suixin, Director of the Rehabilitation Department at Xiangya School of Medicine, Central South University, to successfully commercialize their respective patents.

Meanwhile, Julu Medical Management has established its own manufacturing facility in Hangzhou, Zhejiang. The facility covers an area of over 1,000 square meters and is primarily dedicated to product research and development as well as activities related to CFDA registration. To date, Julu Medical Management has secured five registered trademarks, six software copyrights, three invention patents, three utility model patents, and five registered medical devices.

In terms of talent training, Julu Medical Management draws on international talent development models and has established a training system for cardiopulmonary physical therapists through collaborations with renowned domestic and overseas universities, thereby cultivating specialized professionals. Meanwhile, the company has built its own internal training framework and employs more than 60 specialists, including cardiopulmonary physical therapists, exercise therapists specializing in sports medicine, and occupational therapists.

As the management system for cardiopulmonary chronic disease rehabilitation gradually matured, Julu Medical Management achieved its initial goal—establishing its own cardiopulmonary rehabilitation centers. In August 2018, Julu Medical Management’s first cardiopulmonary rehabilitation center was established in Beijing. Within less than a year, the company had opened six “Julu Cardiopulmonary Rehabilitation Centers” in cities including Beijing, Tianjin, and Qingdao.

Julu Cardiopulmonary Rehabilitation Center (Image provided by the company)

The primary patient population for cardiopulmonary rehabilitation consists of the elderly. Older adults often suffer from multiple comorbidities, including concurrent cardiovascular, pulmonary, and metabolic disorders such as diabetes. Given the substantial demand for inpatient cardiopulmonary rehabilitation among geriatric patients, Tongliao Geriatric Hospital planned to establish a Department of Rehabilitation Medicine in 2018 but faced challenges due to a lack of experience in setting up such a unit.

By a fortunate coincidence, the head of Tongliao Geriatric Hospital learned about Julu Medical Management. In April 2018, Julu Medical Management began assisting the hospital in establishing a rehabilitation center specializing in chronic cardiopulmonary diseases.

Through the preliminary 3S advisory system, project analysis, operations, and scanning, Beijing Julu Medical Management Consulting Co., Ltd. identified the local rehabilitation needs and market size in Tongliao, establishing the positioning of the hospital’s Rehabilitation Center as a “comprehensive rehabilitation with a focused general approach, featuring cardiopulmonary and diabetes-related chronic disease management.” During the construction process, Julu Medical assisted with every detail, from room layout and departmental promotional materials to staff training. From initial research to final delivery, it took only four months to complete the establishment of the Cardiopulmonary Rehabilitation Department at Tongliao Geriatric Hospital.

Upon its completion, the Tongliao Geriatric Hospital pioneered a novel healthcare service model in the Inner Mongolia Autonomous Region that integrates chronic disease rehabilitation and management. It also introduced an innovative therapeutic approach combining cardiopulmonary chronic disease rehabilitation with traditional rehabilitation methods, successfully integrating the treatment and rehabilitation of chronic conditions such as cardiovascular diseases, neurological disorders, and diabetes.

Currently, the cardiopulmonary chronic disease rehabilitation management system managed by Julu Medical has been successfully implemented in more than 10 hospitals, with a cumulative total of over 1,600 rehabilitated patients. Xu Changjun stated, “It is expected that by 2019, the company’s cardiopulmonary rehabilitation management system will be deployed in 20 hospitals, community centers, and elderly care institutions.”

Xu Changjun said, “We have been contemplating what the corporate culture of Julu Medical Management is. What we emphasize most internally is reverence for rehabilitation and ‘genuine rehabilitation.’”

Definition:

1. If a patient in need of rehabilitation fails to undergo treatment, it merely means the loss of one client for us; however, for the patient, it signifies the loss of a lifelong opportunity to improve their quality of life. Therefore, we must uphold an evangelistic spirit and persistently conduct patient education to enhance their understanding and awareness.

2. Serve clients using internationally standardized rehabilitation systems, employ internationally recognized assessment frameworks to accurately evaluate functional impairments and specific needs, and provide evidence-based rehabilitation plans;

3. Utilize professional rehabilitation personnel (formally trained through systematic education and training, with practical application experience) to serve the rehabilitation system;

4. Establish an IoT-enabled, IT-driven rehabilitation service system in accordance with internationally recognized rehabilitation protocols.

Julu Medical Management Official Website:https://www.juluyiliao.com