Luye Medical and Cleveland Clinic Launch Global First 'Cleveland Clinic Connected' Hospital in Shanghai, Establishing a Value-Based Healthcare Benchmark

“The New Healthcare Reform” proposes the establishment of a “multi-tiered and diversified” medical service system, with the goal of comprehensively meeting the public’s demand for healthcare services. Under this top-level design, policies supporting privately run medical institutions have been progressively refined year by year, enhancing their operability and creating favorable conditions for capital investment.

In recent years, policies supporting privately run medical institutions have primarily focused on the Outline of the “Healthy China 2030” Plan and the Opinions on Supporting Social Forces in Providing Multi-level and Diversified Medical Services (hereinafter referred to as the “Opinions”). The “Opinions” set forth the goal and task of establishing a large number of privately run medical institutions with strong service competitiveness by 2020, thereby gradually forming a new pattern of multi-level and diversified medical services.

At this year’s “Two Sessions,” the Government Work Report pointed out that the next steps should support non-governmental entities in increasing the supply of medical and other services, and expand opening-up to foreign investment in healthcare and related fields, thereby reaffirming the direction for deepening social capital’s participation in healthcare services. Healthcare reform has entered a critical phase.

On July 12, 2018, Luye Medical Group announced a collaboration with the Cleveland Clinic, a world-renowned leading medical institution in the United States, to establish the first “Cleveland Clinic Alliance” hospital globally at the Shanghai New Hongqiao International Medical Center. The international general hospital resulting from the partnership between Luye Medical and the Cleveland Clinic will be built on the concept of value-based healthcare services, aiming to develop clinically focused specialties with international influence.

Both parties will engage in comprehensive, in-depth cooperation focused on key areas such as enhancing clinical efficacy, performing high-complexity surgeries with advanced technical content, and implementing a “patient-centered” integrated medical team service model. Together, they will explore innovative, high-quality healthcare service models that align with international standards while reflecting China’s unique characteristics.

Senior officials from relevant Shanghai municipal authorities, industry associations, the U.S. Consulate General in Shanghai, and the New Hongqiao International Medical Center, along with renowned experts from key therapeutic fields across China, jointly attended the launch event for the international strategic partnership between Luye Medical Group and Cleveland Clinic.

Launch Ceremony of the International Strategic Cooperation Press Conference between Luye Medical Group and Cleveland Clinic

The 19th National Congress of the Communist Party of China clarified the “Healthy China 2030” development strategy. With the active introduction of national policies encouraging social capital to invest in healthcare, private medical institutions in China are ushering in broad development opportunities. In alignment with “Healthy China 2030,” Shanghai has released the Outline of the “Healthy Shanghai 2030” Plan. The Outline explicitly states that by 2020, Shanghai aims to basically establish a cluster of key clinical specialties consistent with its goals for building a science and technology innovation hub and its positioning as an Asian medical center city, thereby continuously consolidating Shanghai’s leading position in domestic clinical specialty capabilities.

Founded in 1921 by four renowned physicians, Cleveland Clinic is a nonprofit, multidisciplinary healthcare institution located in Cleveland, Ohio, integrating clinical care, research, and education. Guided by the principles of cooperation, compassion, and innovation, Cleveland Clinic is committed to delivering exceptional medical services to patients.

In the 2017–2018 U.S. News & World Report Best Hospitals rankings, Cleveland Clinic’s Cardiology and Heart Surgery program ranked first in the nation for the 23rd consecutive year, and its Urology program also ranked first nationwide. Its Gastroenterology and GI Surgery, Nephrology, and Rheumatology programs each ranked second nationally, while its Diabetes and Endocrinology, Orthopedics, and Pulmonology programs were all among the top five in the nation.

In 2017, Cleveland Clinic recorded 7.6 million outpatient visits, 229,000 inpatient admissions, and 207,000 surgical procedures. Patients came from all 50 U.S. states and 185 countries.

Leveraging the strengths of Cleveland Clinic, Luye Medical will focus on key specialty areas—including cardiology, urology, and oncology—in its international strategic collaboration with the partner, to build internationally renowned centers of excellence and provide Chinese patients with world-class medical services and experiences.

This strategic alliance is, in essence, aimed at establishing a new paradigm in the private healthcare sector. Leveraging best practices in clinical operations, patient experience, and care quality, Cleveland Clinic has launched the “Cleveland Clinic Collaborative” initiative to partner with healthcare institutions and improve patient care standards across the United States and globally. With support from Cleveland Clinic, Luye Medical Group will establish the world’s first “Cleveland Clinic Collaborative” hospital in Shanghai. The hospital has currently obtained the “Approval Letter for Establishing a Medical Institution” and is in the planning and construction phase.

Luye Medical is the healthcare services arm of Luye Life Sciences Group, operating over 50 private medical institutions with nearly 10,000 employees across Australia, Singapore, China, New Zealand, and other countries.

Its portfolio includes brands such as Healthe Care, OncoCare Cancer Centre, Novena Heart Centre, and AsiaMedic. Healthe Care is the third-largest private hospital group in Australia, with over 35 medical facilities; OncoCare Cancer Centre and Novena Heart Centre are renowned specialist clinics in Singapore for oncology and cardiology, respectively.

In China, Luye Medical has established comprehensive healthcare service platforms in multiple key cities, including Shanghai, Yantai, Chongqing, and Chengdu. By introducing internationally advanced medical technologies, operational models, and management systems, Luye Medical Group is committed to providing value-based, high-quality healthcare services to patients across the Asia-Pacific region.

Dr. Tom Mihaljevic, CEO and President of Cleveland Clinic

Liu Dianbo, Chairman of the Board and President of Luye Life Sciences Group

In the view of Liu Dianbo, Chairman of the Board and President of Luye Life Science Group, the advantages of the collaboration between Luye Medical Group and Cleveland Clinic lie in the following aspects:

First, the enormous market demand in China; second, policy deregulation that encourages social capital to enter the healthcare sector and promotes international medical cooperation; third, Cleveland Clinic’s cutting-edge technology, management systems, and culture, along with the shared values and sense of mission between Cleveland Clinic and Luye Medical Group; fourth, Luye Medical Group’s professional and internationalized footprint, as well as its accumulated experience in healthcare systems and management across Australia, Singapore, and China; and fifth, Shanghai’s resource advantages in terms of the concentration of medical talent, scientific research, teaching, and healthcare institutions.

Liu Dianbo stated, “Our driving force since the founding of Luye Medical has been to ensure that patients have access to the highest-quality medical products, technologies, and services. As a world-leading healthcare institution with global prominence in numerous specialty fields, Cleveland Clinic represents the pinnacle of medical excellence. Establishing a strategic partnership with Cleveland Clinic will enable us to introduce internationally renowned medical technologies, service philosophies, and management systems, thereby delivering superior care to patients in China.”

Value equals clinical outcomes divided by the resources used for treatment. Through this collaboration, Cleveland Clinic not only exports its value-based healthcare philosophy to the joint hospital under construction but also prioritizes improving medical quality, with the aim of establishing a patient-centered healthcare system.

“Value-based healthcare, in short, means that all medical services should be patient-centered, delivering optimal therapeutic outcomes and the most valuable care. Value-based healthcare is not only the core strategy of Luye Medical Group but also the future trend,” said Wang Chongguang, CEO of Luye Medical International Group. “As a healthcare provider in the Pan-Asia-Pacific region, Luye Medical has launched a five- to ten-year development plan in Australia centered on value-based healthcare, with similar initiatives to follow in Singapore. In China, value-based healthcare will also serve as a core component of Luye Medical’s strategic deployment in its international strategic cooperation project with Cleveland Clinic International, reflected in every stage from design to operations.”