Mifu Medical Secures Tens of Millions RMB in Series A+ Funding to Expand Dermatology Clinic Chain and Launch Skin Academy
VCBeat (WeChat ID: vcbeat) has learned that Mifu Medical has secured tens of millions in Series A+ financing, led by Aier Medical Investment Group and participated in by Chongshan Capital.
As a benchmark for successful marketization in China’s healthcare sector, Aier Eye Hospital’s partnership with Mifu Medical will significantly enhance Mifu Medical’s scale and management operational capabilities, while also providing strong impetus to the implementation of the Xiuzhong Dermatologist Group project. Chongshan Capital, a firm specializing in investments in healthcare and wellness, has invested in dozens of companies within vertical medical sectors. Its additional investment this time underscores its recognition of Mifu Medical and the doctor group model.
Mifu Medical, founded in Beijing in 2014, has been dedicated to the field of dermatology for years. Its business model consists of three parts:
Organize dermatology experts from various provinces and cities to provide assistance and jointly develop dermatology departments in county-level hospitals.
Acquire and establish dermatology specialty chains in prefecture-level cities and provincial capitals.
Establish a Dermatology Institute to conduct academic research and build a product R&D platform.
Currently, Mifu Medical has provided assistance to nearly 20 institutions across provinces and municipalities including Hebei, Inner Mongolia, Henan, Jiangxi, Hunan, Guizhou, and Sichuan.
As many “chairpersons of specialty committees” joined physician groups in 2017, the medical sector witnessed a surge in physician-led healthcare ventures. In fact, as early as 2015, when physician groups were just emerging, one such “chairperson” quietly founded the Xiuzhong Dermatology Physician Group.
This physician group is also a core founding institution of Mifu Medical. Professor Zhang Jianzhong, Founder of the Xiuzhong Dermatology Physician Group, Former Chairman of the Chinese Society of Dermatology and Venereology under the Chinese Medical Association, and Director of the Department of Dermatology at Peking University People’s Hospital, stated: “Favorable policies should not be rescinded; we can take bolder steps and further loosen restrictions. We must trust that physicians can manage themselves, that the market can regulate itself, and that society can govern itself. Physicians are not infants; let them boldly attempt and explore, after all, wisdom and creativity originate from the people.”
In Professor Zhang Jianzhong’s view, the emergence of physician groups is an inevitable trend and a product of the broader macro environment. “In Western developed countries, physicians are independent practitioners. To adapt to the planned economy system in the early years of the People’s Republic of China, Chinese physicians naturally became employees of state-assigned work units. With the establishment of a market economy and the transition of the economic system, many industries have undergone significant changes, yet the mode of medical practice has not kept pace. This has severely constrained the liberation of healthcare productivity.”
As a member of the Class of 1977, Professor Zhang Jianzhong has profoundly appreciated the transformative power unleashed by individual initiative. “The greatest challenge facing China’s healthcare system is imbalance; addressing it requires efforts both from the top down and from the bottom up. Adhering to government leadership in reform is an inevitable choice, but such leadership does not imply that the government should assume full responsibility. Physician groups serve as a highly beneficial supplement to healthcare reform.” As a leading expert serving on key committees, Professor Zhang Jianzhong possesses deeper insights into the healthcare industry and maintains a clear perspective on the emergence of physician groups.
“Physician groups are a new phenomenon, an inevitable outcome of social development, the crystallization of reform, and a means for physicians to explore new professional pathways. The fact that many physicians are joining physician groups or even establishing their own clinics demonstrates that Chinese doctors aspire to contribute positively to healthcare reform and better serve patients.”
“Following this financing round, we will draw on Aier Eye Hospital’s proven success to expand and strengthen our dermatology business. In addition to maintaining our current support and collaboration with departments in primary-care hospitals, we will launch a partnership program in 2018 to establish a chain of independent dermatology clinics, set up the Xiuzhong Dermatology Academy, and deliver continuing education for primary-care practitioners through both online and offline channels.”Luo Yong, Executive Partner of Xiuzhong Dermatology Physician Group and Founder & CEO of Mifu Medical, stated.
Reaching the Grassroots Level
Since establishing China’s first dermatologist group in 2015, Professor Zhang Jianzhong has led his Xiuzhong Dermatologist Group to continuously advance on its path of exploration.
Xiu Zhong Dermatology Physician Group has entered into a deep strategic partnership with Mifu Medical, with Mifu Medical assuming overall responsibility for the implementation and execution of numerous projects under the Xiu Zhong Dermatology Physician Group. To date, subsidiaries have been successively established or are in the process of being established in Henan, Inner Mongolia, Jiangxi, Guizhou, Hunan, Sichuan, and other regions.
Mentors, Stewards, and Nannies: These three roles best describe the services provided by Xiuzhong Dermatologists. The Xiuzhong Dermatologist Group has already launched substantive operations, including providing continuing medical education for physicians, offering support and co-building departments with primary care hospitals, and disseminating scientific health knowledge to patients.
Collaborating with renowned dermatology experts to support the development of county-level disciplines has become the core business of Xiuzhong Dermatologist Group. Relevant statistics show that China currently has more than 20,000 dermatologists, meaning there is only one dermatologist for every 60,000 people on average. This figure highlights the severe shortage of dermatologists in China. Furthermore, the distribution of dermatologists is highly uneven, with the number of dermatologists in the eastern coastal regions being approximately three times that in the central and western regions. This reality of both a shortage and uneven distribution of dermatologists makes it difficult for many patients at the primary care level to access treatment.
“Elegant yet grounded, reaching down to the county level. To date, more than 150 forums on the development of primary-care dermatologists have been held.” In Professor Zhang Jianzhong’s view, the main battlefield for physician groups lies at the primary-care level, and serving as “mentors” constitutes a core value of these groups. “At the primary-care level, there is not only a shortage of general practitioners, but also a scarcity and suboptimal quality of specialists in fields such as dermatology. While the government is currently focusing primarily on general practice, physician groups with clear vertical specialization have substantial opportunities to contribute to the development of primary-care specialists, after all, physicians are the core of healthcare. The difficulty in accessing medical care stems largely from the challenges in seeing specialists and experts.”
The Xiuzhong Dermatology Physician Group has also extended its reach into departmental management guidance and operational support, currently providing assistance to nearly 30 county-level hospital dermatology departments.
Zhang Jianzhong hopes that the prescriptions issued by primary care dermatologists will be similar or identical to those of expert professors, that their communication and explanations to patients will mirror those of experts, and that the therapeutic outcomes achieved by primary care dermatologists will be comparable to those of expert professors.
“Based on the experience of developed countries, as society advances, the focus is shifting from mere survival to quality of life. Dermatology, previously constrained by its emphasis on treating minor conditions, now faces excellent development opportunities. Currently, dermatology departments in large hospitals rank among the highest in outpatient volume, and the booming aesthetic medicine sector serves as a favorable factor for industry growth. In the United States, dermatologists rank at the forefront of the medical field in terms of both income and social status.”
In addition, the field of dermatology possesses inherent advantages in digitalization and marketization due to its unique characteristics.
“Dermatology is the healthcare sector closest to offline services and most readily integrated with internet technologies. While dentistry has achieved remarkable success in marketization, dermatology possesses its own unique advantages and should strive to become the next breakthrough area.”