Home Beidou Star Children's Hospital Secures Tens of Millions in USD Investment from H Capital, Plans Nationwide Chain Expansion

Beidou Star Children's Hospital Secures Tens of Millions in USD Investment from H Capital, Plans Nationwide Chain Expansion

Jan 30, 2019 14:30 CST Updated 14:30

On January 30, Beidouxing Children’s Hospital announced that it had secured a multi-million-dollar investment exclusively participated in by the U.S.-dollar-denominated investment firm H Capital. Previously, the hospital had received funding from domestic investors such as Fenxiang Investment, Weidu Capital, and Xie Li Investment.


As the first Sino-foreign joint venture mid-to-high-end children’s hospital in Central China, Beidou Star Children’s Hospital has attracted significant industry attention since its official opening in early January this year. The hospital specializes in the prevention and treatment of general pediatric conditions and family ENT disorders, bringing together more than 50 renowned professors and physicians from top-tier (Grade 3A) hospitals.


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Beidou Star Children's Hospital Medical Staff


Dr. Yao Hongwu, founder of Beidou Star, stated, “Our dream is to establish a children’s hospital that ‘enhances the value of physicians and upholds the dignity of patients.’ To create such a high-quality children’s hospital, the two most critical tasks are integrating the finest pediatric medical resources and delivering the most considerate healthcare experience for children. Therefore, recruiting the top experts has occupied one-third of my time. Meanwhile, studying child psychology, developing Beidou Star’s service process standards, and ensuring rigorous training and implementation are major priorities we meticulously refine every day. All these efforts are gradually translating into likes and recommendations from every user. This also reflects the alignment of our values with those of our investors.”


As the sole investor in this round for Big Dipper Children’s Hospital, H Capital stated: “While China’s healthcare and health sectors have developed rapidly and the medical system continues to improve, difficulty in accessing medical care remains a significant pain point for many, with pediatric care being an even more acute challenge. With the advent of China’s new consumer era, a comprehensive, patient-centered upgrade of medical services has become imperative. Big Dipper Children’s Hospital is the first healthcare service provider chosen by H Capital for investment.”


Xie Kai, Managing Director at FenShare Capital, stated, “H Capital is a well-established and reputable US-dollar fund known for its astute and decisive investments in the broader consumer services sector. Their support represents strong endorsement of Beidouxing’s value proposition and the caliber of its team. This investment will provide significant momentum for Beidouxing to further expand its service reach. We are delighted to collaborate with H Capital in offering strategic guidance to support Beidouxing’s growth.”


Bridging the Gap in Pediatric Healthcare: Addressing the Shortage of Mid-to-High-End Supply


Dr. Yao Hongwu graduated from the School of Medicine and Health Management at Tongji Medical College, Huazhong University of Science and Technology. Formerly a surgeon, he later transitioned into healthcare management, accumulating over ten years of experience in managing hospital chains. He has established substantial expertise in the operations of large hospital groups, nationwide chain management, and innovative medical services.


With the nationwide implementation of China’s two-child policy in 2015, individuals born in the 1980s and 1990s gradually entered their peak childbearing years. Coupled with consumption upgrading, this trend has created market opportunities stemming from the shortage of high-end pediatric healthcare services. Dr. Yao Hongwu led his team to decisively establish Beidouxing Children’s Hospital, selecting Wuhan—a city with significant geographic advantages, abundant medical resources, and rapid urban development—as the location for its flagship hospital.


Beidou Star Children's Hospital features specialized departments including Pediatrics, Child Health Care, Pediatric Otolaryngology, Pediatric Ophthalmology, Pediatric Stomatology, Pediatric Surgery, and Allergy. The hospital is led by President Wang Zhinan, who serves as the Vice Chairman of the Chinese Committee on Pediatric Otolaryngology and formerly held the position of Director of the Department of Otolaryngology at Wuhan Children's Hospital.


The consultation rooms at this hospital resemble the living rooms of a home. Mothers who bring their children for medical visits with prior appointments do not need to wait in line, reducing feelings of tension and unease. A mandated minimum consultation time of 15 minutes allows mothers to communicate with doctors in a relaxed and confident manner, eliminating the awkward situation of “waiting two hours in line only to have a two-minute consultation.” Faced with doctors and nurses wearing cartoon-patterned uniforms and customer service staff skilled at comforting children, the kids feel remarkably at ease. They not only communicate smoothly with the physicians but also often head straight to the play area for some fun after their consultations.


Redefining Healthcare Service Standards with a User-Centric Approach


Beneath the veneer of joy and harmony lies a redefinition of healthcare service standards, one that is entirely user-centric, eliminates “negative energy” and “negative emotions” during the medical care process, and restores dignity to patients.


Beidouxing Children's Hospital is dedicated to creating a "Private Physician Service" that matches patients with specialists in highly specialized fields, ensures transparency throughout the diagnostic and treatment process, and provides continuous post-consultation care. It helps young parents establish health records for their children and leverages hospital-wide resources to deliver an integrated private health management service covering growth and development assessment, disease prevention, diagnosis, and treatment.

 

In terms of its service system, Beidou Star Children’s Hospital provides personalized premium medical services, serving as a valuable complement to public hospitals. “Public and private hospitals should establish green channels for two-way referrals and form complementary relationships in technical capabilities,” emphasized Yao Hongwu. Currently, Beidou Star Children’s Hospital has established “specialty alliance” partnerships with multiple Grade A tertiary hospitals, enabling joint consultations for complex and challenging cases.


Build Reputation, Not Ads; Uphold Quality to Shape the Brand


Currently, the strong reputation that Beidou Star Children's Hospital enjoys among parents has been gradually built on solid service quality and patient experience, without any formal commercial advertising.


Dr. Yao Hongwu candidly acknowledged that while the hospital has successfully secured financing and enjoys ample capital, it is crucial at this stage to resist the temptation of taking shortcuts. Instead, patience is required to win patients’ trust through the most fundamental and gradual approach, underpinned by steadfast service quality and medical excellence. “What brings me the greatest joy is seeing patients who come to our hospital through word-of-mouth referrals,” said Dr. Yao Hongwu.


At the opening ceremony of Beidou Star Children's Hospital, Olympic champion Yang Wei appeared as a loyal member, sharing his child’s high-quality experience of receiving meticulous care during each visit to the hospital.


Recognition of and trust in Beidouxing Children’s Hospital directly led Yang Wei to select the hospital as a strategic partner for his sports training startup venture, and to designate it as the sole medical support team for the “2019 Yang Wei Cup Asian Tour,” providing international-standard medical services throughout the entire competition.


“Beidouxing must not only have the most outstanding medical experts, but also design excellent healthcare products for children. Preventive care and improving family health literacy are also part of the social responsibility of children’s hospitals,” said Dr. Yao Hongwu.


Beidouxing’s Pursuit of Quality Is Reflected in Every Detail. Many foreign residents in Wuhan have come to the hospital for medical care due to its reputation. The hospital provides English-speaking triage services, enabling patients from the United Kingdom, France, South Korea, the United States, and South Africa to access medical care smoothly and without barriers.


As a signed project under Wuhan’s “Million Alumni Returning to Invest and Bring Intelligence Back to Wuhan” initiative at the 2018 China-Guangdong-Hong Kong Economic and Trade Cooperation Fair, Beidou Star Hospital achieved smooth and stable operations in 2018. It attracted visits and exchanges from the Deputy Mayor of Kansas City, Missouri; Children’s Mercy Hospital (Kansas City); and Cook Medical, all of whom spoke highly of the hospital, thereby laying a solid foundation for the future integration of high-quality international medical resources.


The decision to invest in Beidouxing was driven by the team's discipline, strength, and potential.


H Capital stated: “The decision to invest in Beidouxing Children’s Hospital was driven by the three core strengths we observed in Dr. Yao’s team—steadfastness, capability, and potential. Steadfastness reflects the team’s persistent commitment and dedication to the medical cause; capability encompasses their professional expertise, spirit, compassion, and ethical integrity as healthcare providers; and potential represents the long-term growth momentum that will enable the hospital to scale up and strengthen its position.”


According to Xie Kai, Managing Director at Fenxiang Investment, Beidou Star Children’s Hospital had already established a strong reputation in Wuhan during its initial phase, when it provided specialized medical services focused on pediatric otolaryngology. Following its upgrade to a full-fledged children’s hospital, Beidou Star will offer more comprehensive and refined health care and management services for children and their families. “As competition in mid-to-high-end pediatric medical services becomes increasingly saturated in first-tier cities, Beidou Star has capitalized on the gap in the pediatric healthcare market of high-quality second-tier cities. By deeply cultivating the Wuhan market, the hospital has achieved robust growth and developed significant differentiated advantages. The successful overall transition from a specialized clinic to a general children’s hospital marks the full recognition of its service quality by local regulatory authorities, expert physicians, and parents of patients,” said Xie Kai.


In the future, Beidou Children's Hospital will establish a nationwide chain network. Currently, the pool of high-quality medical and nursing professionals outside the public hospital system is quite limited. Dr. Yao Hongwu stated that the hospital will first perfect its training system before deploying medical staff to support the chain expansion. At present, Beidou is recruiting pediatricians and nurses across China. Professional expertise, combined with a genuine love for children, is the primary criterion for talent selection at Beidou.