Fushoukang, Shanghai's Leading Home-Based Care Provider, Secures Series A Funding and Files IPO Prospectus Leveraging Long-Term Care Insurance Tailwinds

Recently, Fushoukang, a leading provider of home-based elderly care services, secured a new round of financing led by Huayi Capital. The funds will be primarily used for the construction and operation of nursing stations to deliver higher-quality care services to disabled seniors.

Fushoukang Home Rehabilitation and Nursing Agency, established in 2011, is the first comprehensive professional institution in China to introduce the home care service model from abroad. It provides all-around services for the elderly, the weak, the sick, and the disabled, including home rehabilitation and nursing, community care, full-process companionship, bed bathing, smart care, assistive device services, and traditional Chinese medicine massage and wellness.

Guided by the service philosophy of “Comprehensive Care for Health, Longevity, and Well-being,” Fushoukang is committed to building a professional brand in rehabilitation and nursing services. Through years of dedicated development and expansion, it has become a leader in Shanghai’s community-based and home-care elderly service industry.

Fushoukang innovates the concept of community and home-based rehabilitation and nursing services by pioneering the “Nursing Station + Community Care Facility” model. This model not only serves community care facilities but also leverages them as hubs to extend services to surrounding communities, providing in-home medical rehabilitation and nursing care for elderly residents within the jurisdiction, thereby establishing a multi-dimensional elderly care service system that integrates point-specific and area-wide coverage.

Notably, unlike other user-paid nursing service providers, Fushoukang’s service fees are covered by Shanghai’s Long-Term Care Insurance, with a reimbursement rate of up to 90%. Leveraging the advantages of this insurance scheme, Fushoukang has further accelerated its rapid growth.

As one of the first pilot institutions for Shanghai’s “Medical and Nursing Care Security Plan for the Elderly” and a designated medical insurance provider in Shanghai, Fushoukang has currently established nearly 30 medical and nursing care stations. Meanwhile, it operates and manages 8 day-care centers, 2 elderly care homes, and 2 assessment agencies. Its service network now covers 14 districts and counties across Shanghai, and it has begun its nationwide expansion.

In July 2016, China’s Ministry of Human Resources and Social Security issued the “Guiding Opinions on Launching Pilot Programs for the Long-Term Care Insurance System,” deciding to initiate pilot programs in 15 regions, including Chengde City in Hebei Province, Changchun City in Jilin Province, Shanghai, and Chongqing. In January 2017, Shanghai took the lead in piloting long-term care insurance in three districts: Xuhui, Putuo, and Jinshan. By January 2018, the pilot program was expanded citywide. This marked a significant development opportunity for elderly care nursing companies.

Regarding this investment, Huayi Capital, the lead investor, stated that long-term care insurance is the only payment mechanism capable of addressing the elderly care needs of disabled seniors. It also represents the first breakthrough point for current elderly care business models. In the future, as the standard “five social insurances and one housing fund” evolves into “six social insurances and one housing fund,” long-term care insurance will be the first new category added to the social insurance system. The market potential is boundless.

According to data from the National Office on Aging, China has over 40 million disabled elderly individuals and has entered an aging society. Medical and nursing care constitute a rigid demand for this population. The introduction of long-term care insurance will significantly enhance their payment capacity, enabling them to access higher-quality nursing services and enjoy a secure and comfortable old age.

Long-term care insurance systems have over 40 years of development history globally and serve as a critical measure for countries to address population aging, with varying models adopted across different nations. China’s long-term care insurance system is in its nascent stage; pilot programs were launched in multiple regions across the country last year, and full-scale implementation has commenced in Shanghai this year. The investment window of opportunity has now opened.

Meanwhile, Huayi Capital added that nursing stations, as the entry point for community-based home care, can bridge the “last mile” of home-based elderly care. Seizing this critical entry point is a vital component in the strategic layout of the integrated medical and elderly care industry.