Lü Jianming, Chairman of Treet Medical: Hangzhou Dental Group Is First and Foremost a Physician Group, Aiming to Open 100 Branches Across Zhejiang Province Within Three Years
Top Choice Medical Chairman Lu Jianming Delivers Speech at Hangzhou Stomatologists Group
VCBeat (WeChat: vcbeat) has learned that on June 4, a meeting of directors from various branches (campuses) of Hangzhou Dental Hospital Group was held at the Pinghai Campus. Lv Jianming, Chairman of the Board of Top Choice Holding Group and Chairman of Top Choice Medical Investment Co., Inc., attended the meeting and delivered an important speech. VCBeat (WeChat: vcbeat) has compiled the following summary.
About Top Choice Medical
Top Choice Medical Investment Co., Inc. is currently the first main-board listed company in China whose core businesses are oral care, assisted reproductive medicine, and other related services. Its oral healthcare services mainly include dental implants, orthodontics, and prosthodontics, while its assisted reproductive services primarily cover diagnosis and treatment of infertility and in vitro fertilization (IVF). Since transitioning into the healthcare sector in 2006, the company now operates a total of 30 specialized hospitals and medical outlets of varying sizes.
Top Choice Medical Investment Co., Inc.'s Revenue and Profit from 2015 to 2017
Top Choice Medical Investment Co., Inc. has pioneered the “Regional General Hospital + Branch Hospitals” development model within the industry. Benchmarking against HCA, this approach represents an exploration and upgrade of the “Central Flagship Hospital + Branch Hospitals” operational model. Under this model, the regional general hospital platform provides support for physicians’ clinical skills and academic standing, while establishing brand influence within the region. Serving as a “moat” for the general hospital, branch hospitals facilitate the rapid expansion of brand influence, optimize the allocation of medical resources, and enhance patient access to care, thereby enabling the accumulation of customer base and acquisition of market share in a relatively short period.
For over a decade, Hangzhou Stomatological Hospital Group has undertaken extensive explorations. It now operates three central hospitals in Pinghai Road, Chengxi, and Ningbo, each of which has spawned more than two branch hospitals. This “Regional Central Hospital + Branch Hospitals” model maximally mitigates the management and expansion risks arising from the unique artisanal nature of dental care, thereby establishing regional dental hospital groups as a viable business model.
The following are the key points of the speech:
The establishment of the Hangzhou Stomatological Hospital Group is a significant event for Top Choice Medical Investment Co., Inc. The proportion of revenue contributed by the Hangzhou Stomatological Hospital Group to the company’s total income fully underscores its importance.
Over the past decade, the company has been fully committed to establishing its presence within Zhejiang Province, withAdopt a cautious, small-scale pilot approach for expansion outside the province., many investors have even questioned why Top Choice’s expansion outside its home province has been so slow. However, the “Top Choice model” has recently drawn attention and sparked extensive discussion within the investment community and among health commission authorities.
Two days ago, the Provincial Health and Family Planning Commission convened a conference on big data and medical information, inviting Top Choice Medical, Alibaba, and several unicorn companies to attend. Based on the presentations delivered at the meeting, ours was the most pragmatic approach. We have been pragmatically developing within Zhejiang Province, transforming Hangzhou Stomatological Hospital into a trulyReplicable Healthcare Groups. Hangkou Group has entered a comprehensive harvest season in Zhejiang Province.
Prior to the Sanya Conference two years ago, we already hadIdeas for Building the Hangkou Group. As of today, the establishment of Hangkou Group is a natural outcome. It is truly gratifying to see that Hangkou Group has been successfully established, is operating effectively, and has achieved notable results. I would like to offer four recommendations regarding the strategic positioning of Hangkou Group:
1. Hangkou Group is, first and foremost, a physician group
The headquarters of Hangkou Group must adhere to the philosophy of “small company, big business,” prioritize major issues over minor ones, and address problems at their root. The Group should allow its hospitals to develop organically and fully leverage their initiative. It is crucial to avoid excessive micromanagement. Any matters that branch hospitals can handle independently shall be left entirely to their discretion.
Fundamentally,The Biggest Problem in Hospitals Is the Human Factor. It is essential to have a large pool of suitable individuals and to cultivate a substantial number of people who share common values.
Hangkou Group is, first and foremost, a physician group, and only secondarily a hospital group. Dr. Wang Renfei serves as the leader of this physician group. Why do renowned hospital groups worldwide, such as Mayo Clinic and Cleveland Clinic, identify themselves as physician groups? The term “physician group” carries multiple layers of meaning:
First, a physician group is not merely a name but a philosophy; physicians are the core productive force of hospitals and the primary providers of patient care.
Second, our physician workforce is not yet large enough; we must integrate the finest dentists in Zhejiang Province to become the largest dental physician group in the province. The team of Hangkou Group, led by President Wang Renfei, should strive to implement this vision, making the development of the physician group its core mission, so thatDoctors Can Share the Value of Our Hangzhou Stomatological Hospital’s Large Platform；
Third, we must also continuously produce andTraining PhysiciansThe company collaborates with major universities to jointly train dental students and offers targeted training for commissioned students. We are committed to serving as an external support partner for our affiliated institutions, assisting them in recruiting high-quality candidates. In the future, each branch must incorporate human resource planning into their summaries and strategic plans, as this is even more critical than financial statements.
2. Comprehensively Advance the Dandelion Initiative
After eleven years of development, Hangzhou Dental Hospital has established a solid foundation in Zhejiang Province and has reached the harvest season. We must not let the crops rot in the fields or allow others to reap the benefits.
We have now launched the Dandelion Program, proposing that within three yearsZhejiang Province Establishes 100 Branch Hospitals, significant results were achieved within five years.
To achieve this goal, first, we must strengthen the intensity, stature, combat effectiveness, and cohesion of the Hangkou Physician Group; second, in every location we enter, we must attract a cohort of local dentists to join Hangkou—not just one, but a group—who share the same breath and destiny with Hangkou.
3. Management must establish core values
How Does Hangkou Group Manage Its Ever-Expanding Hospital System and Growing Workforce of New Employees?
First, we must adhere to value-based management. Customers come first, always; therefore, strategic planning and process optimization should be centered around the principle of customer primacy.
Second, physician-centric hospital management. Physicians are the primary agents in addressing patient needs; our entire system is designed to support physicians, enhancing their capability and efficiency in serving patients.
Third, mutual respect, teamwork, and the promotion of team-based medicine.Integrated Healthcarea model. Physicians should extend their humanistic care for patients to the colleagues who support them;
Fourth, pursue excellence. As Hangkou Group is poised to become the largest dental physician group, we must demonstrate our industry standing and self-awareness. Some of our physicians underestimate their own capabilities. The team led by President Wang Renfei should inspire physicians’ passion for taking on challenges, enabling each individual to identify and leverage their strengths and competencies. We must have the courage to challenge the industry’s top performers and even your mentors and experts.
External publicity is important for Hangkou Group, but internal communication is even more critical. Otherwise, doctors and employees recruited through the “Dandelion Program” will find it difficult to integrate into Hangkou’s work culture. It is essential to transform those physicians who prefer working in isolation, resist scrutiny of their treatment approaches, are reluctant to allow others to review their medical records, lack interpersonal communication skills, and are solely focused on quick financial gains. To safeguard the Hangkou brand from damage, the group must compile the *Hangzhou Stomatological Hospital Group Medical and Nursing Staff Handbook*, ensuring that every employee receives a copy. Even cleaning staff must undergo values-based training, with continuous education provided on an ongoing basis.
4. CM Management Is the True Marketing
What is marketing? The behavior of every individual in our hospital constitutes the most important and effective form of marketing. With annual revenue of $11 billion, Mayo Clinic invests virtually nothing in advertising; for a long period, its marketing department had only one employee. This powerful word-of-mouth reputation stems from Mayo’s unwavering commitment toProvide diagnoses and solutions to clients, a clear answer!
In 1895, William Mayo stated, “Misdiagnosis is less forgivable than mistreatment. Every diagnosis requires a comprehensive and meticulous examination, free from personal bias; only in this way can you achieve success.”
It is essential to assign senior, highly skilled physicians to the diagnostic and treatment-planning stages, while integrating younger doctors into the therapeutic teams. Refrain from engaging in advertising wars with overly commercialized medical institutions; what could be more persuasive than a factual, comprehensive, and detailed diagnostic report? Let physicians across society serve as our supervisors, ultimately becoming our advocates, and refer complex and challenging cases to us.
Whenever I am with you, I will discuss the CM model; our commission and performance assessment systems should be adjusted accordingly.Patient Attrition Rate Is a Key Performance Indicator, this fully demonstrates that actions reflecting our values are the best form of marketing—what you see is what you get, and service is marketing.
Editor’s Note: The CM (Case Manager) team enables categorized customer management and precision services. The team comprises attending physicians, hospital-based physicians, medical assistants, nurses, and customer service personnel.