Qiangsen Medical Secures Tens of Millions in Series B+ Funding to Accelerate Nationwide Rollout of 'Yizhu Cloud Clinic' SaaS Platform

VCBeat (WeChat ID: vcbeat) has learned that, eight months after securing RMB 100 million in Series B financing, Johnson Medical Group, a leading provider of chained community healthcare services in China, has completed a Series B+ financing round worth tens of millions of yuan. The investor was the Modern Service Industry Development Fund.

Johnson Medical, founded in 2014, is a community-based healthcare chain group that prioritizes families and leverages corporate medical security to promote primary care at the community level. It provides Chinese households with high-quality, convenient, and safe general practice consultations and family doctor services. The company has secured multiple rounds of investment from venture capital firms including Legend Capital, Qiming Venture Partners, and Dehui Capital.

Founder of Johnson Medical Group andHe Haiyang, CEO of Johnson Medical, stated that the company has been committed to a value-oriented approach by implementing bundled payment models for family-based general practice services. This initiative aims to establish a family-centered accountable care system, redefine community healthcare, provide patients with appropriate medical access points, and ensure the proper utilization of destination-specific medical resources.

Unlike other traditional brick-and-mortar clinics, Johnson Medical recognized the importance of IT tools in primary care from its inception and focused on the development and application of a SaaS-based standardized information management platform. In June 2017, Johnson’s self-developed SaaS platform, “YiZhu Cloud Clinic,” launched for internal beta testing and officially went live in December 2017. The platform provides comprehensive online-to-offline solutions for the operational management of all primary care clinics, enabling functionalities such as clinic operational data management, inventory control, financial management, statistical analysis, customer relationship management (CRM), electronic medical records (EMR), health records, and remote collaboration.

“In the field of primary healthcare, the market is still in its early stages. The genuine implementation of first-contact care at the primary level is key to the success of the tiered diagnosis and treatment policy within healthcare reform. In this context, accountable care and value-based care are particularly important, as the realization of primary first-contact care stems from the trust fostered by these two models,” introduced He Haiyang. “By treating each community clinic as a ‘small front-end’ and establishing an open, interconnected ‘large platform’ linked by IT systems, we aim to form a ‘rich ecosystem’ healthcare system based on whole-person, whole-process, and holistic health. ‘Small front-ends, large platform, rich ecosystem’ is the new strategy released by Johnson Medical in 2018, as well as its model for value innovation.”

As of the end of 2017, Johnson Medical operated nearly 40 directly-owned offline chain medical institutions across China, with a team of 700 medical, technical, and nursing professionals. Its services covered more than 150 communities in Xi’an, Chengdu, and Chongqing, creating a “15-minute community convenient care circle” to bridge the “last mile” between clinics and households. The company has provided general practice consultations and family doctor services to over 100,000 families, totaling 360,000 patient visits, and achieved a year-on-year annual revenue growth of more than 240%.

Jin Suoxiang, Managing Partner of the Modern Service Industry Development Fund, an investor in this round, stated, “We are highly optimistic about Johnson Medical’s active expansion and sustained growth over the past year, driven by its chain store network and product operations. The company has also achieved strategic breakthroughs with its independently developed medical assistant SaaS platform. We believe that the primary healthcare market will give rise to a new model of chain clinics distinct from those in the traditional era, fostering the emergence of a new cohort of unicorn enterprises.”

According to He Haiyang, YiZhu Technology has begun building its big data technical reserves for the development of next-generation products and will leverage new artificial intelligence applications to collaboratively promote solutions in specialized segments. The current round of financing will be used to expand into new regional cities, promote the YiZhu SaaS platform nationwide, integrate upstream and downstream supply chain service channels, and accelerate the construction of a “cloud + terminal + product + service” ecosystem chain for chain clinics. This aims to provide more clinics with professional and efficient clinic management solutions, establish an open, interconnected platform for community medical chains, and initiate the introduction of strategic institutional investors this year to further expand market scale.