SinoUnited Health Files IPO Prospectus: Premium Clinics with $3M+ Setup Cost, Partnerships with 40+ Insurers, and 50% Expatriate Clientele

The integration of comprehensive outpatient clinics with commercial health insurance has long been regarded by healthcare entrepreneurs as the optimal business model.

However, few outpatient clinics are favored by commercial health insurers. The primary reason is that clients of commercial insurance have high expectations for medical care and services, and few institutions can simultaneously deliver high-quality clinical expertise and customer service.

However, there is a high-quality medical service investment and operation institution in Shanghai called Yao Ying Medical Investment Management Co., Ltd. It was founded by a team of senior Chinese and foreign doctors, with the mission of providing high-quality medical services. Since its establishment in 2016, it has invested in and operated three high-quality outpatient clinics in Shanghai, and the fourth one is under construction.

After more than two years of development, SinoUnited Health Investment Management has become the preferred service provider for a wide range of clients with high expectations for healthcare quality. Its clientele includes insured members from over 40 domestic and international commercial health insurance companies, as well as a segment of self-pay patients. Approximately 50% of its clients are expatriates in China, while the remaining 50% are Chinese nationals.

Furthermore, in the second half of 2017, it secured RMB 60 million in Series A financing, led by Maxing Investment, with follow-on investments from the founders and the physician team.

So, how has this high-end outpatient clinic achieved such success? To find out, VCBeat conducted exclusive interviews with Zhu Qi, Chief Medical Officer, Chair of the Medical Committee, and Chief of Gastroenterology at SinoUnited Health, as well as Tian Zirui, Partner at MaxStar Capital, to gain their insights into “SinoUnited Health.”

Currently, SinoUnited Health has opened three directly operated comprehensive outpatient clinics in Shanghai, featuring six specialized centers: the Digestive Endoscopy Center, Children’s Health Center, Day Surgery Center, Women’s Health Center, Cardiac Diagnosis and Treatment Center, and Rehabilitation and Physiotherapy Center. By leveraging international medical resources, SinoUnited Health brings high-quality, globally standardized healthcare services to China.

Its core medical team comprises senior physicians from both international and domestic backgrounds. The team strictly adheres to international and Chinese clinical guidelines, integrates the latest technological advancements, and upholds a “patient-centric” philosophy to deliver optimal healthcare services to clients. The current client base primarily consists of individuals covered by commercial health insurance (both domestic and international) as well as self-pay patients, with foreign and Chinese nationals each accounting for approximately half of the clientele.

Among these team physicians, Zhu Qi joined SinoUnited Health in October 2017. He stated, “I have been practicing medicine for over 30 years. Joining SinoUnited Health was not an impulsive decision; rather, it was a carefully considered choice based on my professionalism and experience, as well as my understanding of the current healthcare reforms in China.”

The reasons that attracted him to join Sinocare Medical are as follows:

First, regarding medical technology, service offerings, and patient care, SinoUnited Health adheres to the principle of physician autonomy in decision-making, rather than allowing operational staff or investors to dictate clinical choices. Only physicians fully understand patients’ needs and are therefore best positioned to determine which aspects of the diagnostic and treatment process require careful control. To illustrate with a hypothetical example: imagine traveling from point A to point B. Taking a single large stride may be faster, but it carries risks and could potentially harm the patient. In contrast, physician-led decision-making might involve setting a course from point A to point B that necessarily passes through point C. Although this approach may appear slower, it ultimately yields greater benefit for the patient.

Specifically, medical decision-making at Jiahui Health is entirely determined by physicians. In this process, they establish medical standards to ensure that the ultimate outcome of medical decisions is truly patient-oriented, i.e., “patient-centered.” For instance, decisions related to the diagnosis and treatment of patients’ diseases, as well as those concerning surgeries, risks, and maximizing patient benefits, are made autonomously by physicians.

Second, against the backdrop of China’s current healthcare landscape, SingHealth aims to integrate high-quality medical service resources to build a brand that establishes itself as the premier healthcare institution in China—delivering high-standard, high-quality, and deeply compassionate care to Chinese patients.

Third, due to physicians’ autonomous decision-making, these three self-operated outpatient clinics currently attract a large number of patients through word-of-mouth referrals. Although the clinical departments established at each clinic are not identical, there is some overlap among them. Meanwhile, to facilitate patient access to care, some clinics operate seven days a week across various time slots.

Fourth, the physician team at Jiahui Health comprises both Chinese and international doctors. This integration of Western and Eastern diagnostic and treatment cultures better serves patients and helps reshape the perception of private healthcare among the public.

Fifth, this is an innovative enterprise. Whether it is the newly joined physician partners or the subsequent addition of other like-minded professionals, all exhibit great vigor, vitality, and strong learning capabilities. Working with such a team every day feels like reliving the passionate early days of my career in the healthcare industry.

Although Zhu Qi is also a physician partner, partners do not enjoy any special privileges in the day-to-day operational management of medical institutions. Being a partner does not confer superior status or exclusive rights. The company’s operations are supported by a professional management team, with each member fulfilling their designated responsibilities.

According to Dr. Zhu Qi, the most noteworthy aspect of SinoUnited Health is its management efficiency. “At SinoUnited Health, we have always adhered to effective and efficient management, avoiding mere formalism.”

Taking the establishment of a new outpatient department as an example, he was personally involved in the entire process of setting up one such facility. This ranged from the initial clinic design blueprints and functional zoning to later-stage details such as patient flow, surgical workflows, and measures to protect patient privacy during diagnosis and treatment.

Next is the procurement of clinic equipment. SinoUnited Health has an internal procurement evaluation process. It begins with physicians who will use the equipment proposing justification for the purchase, followed by an objective assessment across multiple dimensions, including price, performance, and practicality. The company does not focus solely on immediate financial gains—such as whether the instrument is profitable—but places greater emphasis on discipline development and its contribution to improving healthcare quality, aligning with the company’s mission. As Dr. Hao Ying Shi, the founder of the company, has consistently emphasized, “We invest in top talent and advanced technology, striving to provide the best medical services in China. We are committed to delivering high-quality, trustworthy, and cost-controllable healthcare to patients, integrating clinical practice with medical education to address their healthcare needs.”

Finally, there is talent recruitment, which serves as a company’s soft power and lies at the core of any medical institution’s development. SinoUnited Health has established an objective HR evaluation system that requires multi-level reviews and scoring, involving key stakeholders such as clinic medical directors and the Chief Medical Officer. The guiding principle is to prioritize quality over quantity, leaving positions vacant rather than filling them with unsuitable candidates. This approach stems from our commitment to delivering high-quality medical services, which demands stringent standards in clinical expertise, medical ethics, customer service capabilities, and cultural alignment.

In structuring clinical departments, we must not adopt a merchant’s mindset that seeks to generate revenue by shuttling patients between specialties; instead, we should prioritize patient-centered care. Clinical cases are often complex; for instance, a patient with gastric disease may also have hyperthyroidism or other comorbidities, necessitating multidisciplinary collaboration. This is our strength, as we have been committed to building robust multidisciplinary teamwork.

From an operational perspective, physicians are not responsible for patient acquisition. A physician’s primary role is to diagnose and treat diseases. Moreover, most reputable physicians have a strong following, as healthcare services ultimately hinge on word-of-mouth reputation. Patient acquisition is the responsibility of the company’s marketing department, which aims to increase public awareness. Many patients previously sought medical care abroad; however, after experiencing Shadow Medical, they find that our physicians offer excellent clinical expertise and high-quality service, eliminating the need to seek treatment overseas.

To enhance physicians' work efficiency, SinoUnited Health has adopted an internet-based management system. This system enables doctors to access patients' historical records, such as laboratory reports and imaging data, regardless of which clinic they are working at.

Collaborating with more than 40 commercial insurance providers is the second distinguishing feature of SinoUnited Health. Currently, patients at the clinic fall into two categories: those covered by commercial insurance and self-pay patients.

These domestic and international commercial insurance institutions have chosen to partner with Sinocare Healthcare because of its superior service quality, more reasonable pricing, and more standardized management.

According to industry insiders, collaborations between such medical institutions and commercial insurers are finalized through a mutual selection process, based on factors including each party’s strengths, market demand, and growth prospects. SinoUnited Health proactively screens high-quality commercial insurance providers, presenting its capabilities and competitive advantages to these potential partners. In turn, these insurers conduct comprehensive assessments of SinoUnited Health to ensure that the partnership yields mutual benefits. Therefore, SinoUnited Health’s recognition by leading insurers such as Ping An underscores its robust institutional strength.

Among the three outpatient clinics currently operated by SinoUnited Health, the clinic where Dr. Zhu Qi practices opened in October 2017 and currently serves fewer than 100 outpatients per day. He is confident that patient volume will continue to grow as more clients become familiar with the company and its physicians. Many clients, particularly self-pay patients, are experiencing our services for the first time; notably, a significant number become loyal patrons after just one visit.

For medical service entrepreneurs in China, most are still navigating uncharted waters. Despite the surge in investment within this sector, there remains a scarcity of truly high-standard, professional institutions. The healthcare services industry, in particular, demands the meticulous, professional, and patient craftsmanship akin to that of an artisan. Shine Medical is one of the few organizations in this field that has established high-standard systems across both clinical diagnosis and treatment as well as nursing care.

So, what is high-end healthcare? Zhu Qi believes that high-end healthcare is invisible! It is not reflected in hardware facilities, but rather in superior technology and clinical workflows, enabling patients to achieve optimal treatment outcomes and care experiences. Taking gastroenterology as an example, when polyps are detected during a colonoscopy, some can be removed on the spot, which exemplifies patient-centered medical services. However, some institutions may opt to perform a biopsy upon discovering a polyp one day and schedule treatment for another day, primarily from a revenue-generating perspective, thereby imposing additional burdens on patients. Internally, we remain committed to a patient-centered approach.

In terms of service, patients who purchase medications at SinoUnited Health can scan the QR code provided and select either Chinese or English voice instructions to learn how to take their medication.

Adhering to the service philosophy of “Patients First,” Shadow Medical is committed to providing the most reliable and comfortable medical experience, personalized tailored services, and meticulous care. Centered on patient needs, it is the self-imposed standard for every medical professional at Shadow Medical to empathize with patients and sincerely safeguard their health. Their goal is to lead the healthcare industry with cutting-edge technology and exceptional service, thereby elevating the overall quality of medical services in China.

As the sole institutional investor in SinoUnited Health, Tian Zirui, Partner at Maxing Investment, stated that Maxing highly recognizes SinoUnited Health’s operational model and philosophy.

Tian Zirui has been engaged in healthcare investment for over a decade. He stated, “The healthcare services sector has undergone significant changes in recent years. While we have witnessed a promising start in the private healthcare market, the industry as a whole still requires a lengthy development cycle. SinoUnited Health focuses on serious, high-quality medical services. We strongly endorse SinoUnited Health’s operational philosophy and believe that its commitment to high-quality service will continuously enhance its market competitiveness. Furthermore, granting physicians who serve as administrators of medical institutions authority over operational decision-making distinguishes SinoUnited Health from other private healthcare providers.”

In fact, physicians are the most critical resource in all high-quality medical services. Therefore, physician resources were the primary focus of Maixing Capital during its investment in Ardent Health. High-caliber medical talent is extremely scarce in the market, and the ability to attract such talent is key to determining the success or failure of competition among healthcare institutions. Ardent Health is a medical institution founded and operated by a team of highly skilled physicians. The professional backgrounds of Ardent’s management team extend into the social networks of surrounding specialist physicians, giving it a natural advantage in recruiting top-tier medical talent.

The Maixing team engaged with the founding team of SinoUnited Health at an early stage. In its initial phase, SinoUnited Health was established and independently operated by a physician management team. Around 2017, when the SinoUnited Health team expressed a need for financing to support local business expansion, Maixing quickly reached an agreement with them. Maixing Capital was the sole institutional investor in this round.

It is understood that the cost for SinoUnited Health to open a clinic in Shanghai is approximately RMB 20 million. The short-term startup costs are primarily allocated to one-time expenditures such as facility setup, rent, and renovation. In contrast, long-term clinic operations require substantial personnel costs and various operational expenses; consequently, the proportion of initial startup costs is relatively low.

As the sole institutional investor in Shadow Medical, Max Star Capital does not seek rapid expansion for the company. “We want Shadow Medical to adhere to its established development cycle, maintain high standards of medical care and service quality, and stay committed to the premium healthcare sector. From Shadow Medical’s perspective, expanding from one clinic to three within just a year after our investment, with a fourth currently under preparation, demonstrates that the enterprise is progressing in a healthy direction,” said Tian Zirui. “As an investor, Max Star will provide necessary support when needed. Our role is to ultimately achieve investment returns while ensuring we serve the company well.”

“Maixing is very optimistic about the future of China’s physical healthcare services sector,” said Tian Zirui.