Honghua Healthcare Files IPO Prospectus: Building China's Mayo Clinic with 100 Hospitals and 3,000 Clinics Nationwide

In June 2016, a German woman experienced sudden abdominal pain and vomiting while on a flight. After enduring the pain until her arrival in Beijing, she visited an international clinic upon a friend’s recommendation. Following a rapid multidisciplinary consultation, the clinic’s physicians determined that surgery was necessary. Leveraging a green channel for referrals, providing full-process medical accompaniment, and coordinating with her German insurance provider, the clinic ensured that the patient, who did not speak Chinese, faced no barriers. She was promptly transferred to a tertiary Grade A hospital for successful surgical treatment. Post-operatively, she continued her rehabilitation and nursing care at the clinic. Upon returning to her home country, she personally wrote a letter of gratitude to the clinic.

This is not a feel-good story, but a real-life medical incident that occurred in Beijing. The clinic featured in the story is OASIS Clinic, and the physician involved is Dr. Shen Zhiwei, who currently serves as the Medical Director of the Clinic Division at OASIS Healthcare Group.

On May 16, 2017, the General Office of the State Council issued the “Opinions of the General Office of the State Council on Encouraging and Supporting Social Forces to Provide Multi-level and Diversified Medical Services,” encouraging the development of general practice medical services and the establishment and operation of high-level general practice clinics by social forces.Private clinics have sprung up in droves.

As early as 2013, OASIS Healthcare opened its first clinic, subsequently achieving scaled growth and expanding both online and offline operations. A quick browse of the OASIS Healthcare app reveals no fewer than 16 service offerings. What kind of medical group boasts such a broad scope? How are these services delivered? VCBeat conducted an exclusive interview with Shen Zhiwei.

Shen Zhiwei, Medical Director of the Clinic Division at OASIS Healthcare Group

"Actions speak louder than words" is a mantra emphasized by the OASIS Healthcare team. Before joining OASIS, Shen Zhiwei had accumulated 33 years of medical experience, with expertise spanning clinical practice, scientific research, and healthcare management, giving him a thorough understanding of China’s healthcare system.

What transformed Shen Zhiwei from a practicing physician to a healthcare entrepreneur was his experience completing a postdoctoral fellowship at Stanford University Medical Center and practicing medicine in the United States for over a decade, during which he observed the differences between the foreign and domestic healthcare systems and medical environments. Upon returning to China, Shen also served as Medical Director and President of Greater China at Dell Medical.

After years of working in the medical field, Shen Zhiwei found that issues such as strained doctor-patient relationships and difficulties in accessing medical care, stemming from problems in healthcare system policies, had not only remained unresolved but had worsened. The existing traditional healthcare system can no longer meet the public’s growing demand for higher-quality health and lifestyle standards, a situation that urgently needs to change.

Shen Zhiwei has two old friends—Zeng Renxiong and Liu Qiao—who have served as senior executives at BAT companies and financial firms, respectively, and possess extensive experience in healthcare investment. As the founders of OASIS Healthcare, they invited Shen to join their team. Recognizing the shortcomings of the traditional healthcare system, Shen resolutely accepted the invitation, committing himself to building OASIS Healthcare into a “leader” in the private healthcare sector to better serve patients.

There is a common saying that “practicing medicine accumulates virtue,” and Shen Zhiwei believes that establishing medical institutions is also an act of accumulating virtue.“China’s healthcare sector is characterized by strained doctor-patient relationships, irrational allocation of medical resources, and severe information asymmetry. Healthcare professionals report low levels of well-being, indicating substantial room for improvement and significant potential for value creation.”

Furthermore, China’s healthcare services market is plagued by numerous pain points and is massive in scale, with its market size projected to reach $20 trillion in the future—far exceeding that of the real estate market. Shen Zhiwei, who has spent more than 30 years navigating the medical field, believes: ““The Chinese healthcare industry will give rise to a cohort of world-class, great enterprises, representing a tremendous business opportunity.”

Currently, OASIS Healthcare's main business is primarily conducted through two lines:

First, offline business.OASIS Healthcare primarily establishes physical entities across China, including chain hospitals, clinics, and international medical centers, providing services such as clinical care, home nursing, in-home medical services, and health insurance.

Currently, OASIS Healthcare has opened six hospitals and clinics in Beijing, while eight international comprehensive clinics and medical centers are under construction. Located adjacent to Peking Union Medical College Hospital and Beijing Hospital, the Oasis International Medical Center is led by healthcare experts and provides diagnosis and treatment, expert consultations, and premium health management services.

Furthermore, OASIS Healthcare has signed direct billing agreements with 93 major insurance companies worldwide, addressing a key pain point in the private hospital industry—Payment Issues.

Insurance Partners of OASIS Healthcare

Second, online business.The OASIS Healthcare App and the cloud HIS platform have achieved mature operations, with services covering 31 provinces, municipalities, and autonomous regions, as well as 307 prefecture-level cities.OASIS Healthcare is committed toIntegrating Health and Finance,Productize and operate online services including in-home medical care, private physicians, clinical medical services, specialist consultations, health management, home nursing, medication delivery, medical emergency response, green-channel access, overseas medical treatment, and health insurance, leveraging innovations in internet healthcare big data and artificial intelligence.Provide Convenient Services.

Home Nursing Services

Among them, OASIS Healthcare’s home-visit medical platform enables over 50,000 physicians and 100,000 nurses to practice independently, primarily drawn from tertiary Grade A hospitals. Its mobile health solutions and OASIS Cloud HIS provide an independent practice platform for 2 million physicians and 3 million nurses, optimizing the allocation of medical resources.

In terms of platform, OASIS Healthcare is China's first self-operated medical service ecosystem enterprise, facilitating independent practice for doctors and nurses through online-offline integration and providing platform services to hospitals and clinics.

Shen Zhiwei believes that this business model can optimize the allocation of medical resources, improve the efficiency of medical services, disintermediate the process, address information asymmetry in the healthcare industry, promote harmonious doctor-patient relationships, and offer substantial potential for value creation.

Amid the continuous rise in population aging and growing national purchasing power, the market size of the healthcare sector, including high-end medical services, will continue to expand.

OASIS Financial Street Clinic

OASIS Healthcare positions its medical services in the high-end segment, with an initial consultation fee of RMB 500 per visit at its clinics. Home visits by physicians are priced at RMB 1,300 per session, while home care services provided by nurses range from RMB 139 to RMB 350 per visit.

Shen Zhiwei, a seasoned physician who once served as the private health doctor for senior central government officials, has seen OASIS Healthcare tailor private doctor services for high-income individuals such as corporate executives. These services range from RMB 3,988 per year for elderly private doctor packages to RMB 198,000 per year for executive-level private doctor services.

Zeng Renxiong, Chairman of OASIS Healthcare, expressed the following view in an interview with the media:High-end healthcare does not imply exorbitant fees, but rather higher-quality services and a more patient-centered model of care.

As rising income levels, technological advancements, and the optimization of medical resource allocation and transaction structures drive down transaction costs, high-end healthcare services should become an accessible social welfare benefit for all.

Shen Zhiwei told reporters, “Mayo is the best private clinic in the United States, Alibaba is the infrastructure of e-commerce, and JD.com is the infrastructure of retail. Benchmarking against these companies, OASIS Healthcare aims to become the infrastructure of healthcare in China.”

At Mayo Clinic in the United States, patients can receive care with confidence. The core value of Mayo is “The Needs of the Patients Come First.” Although it is called a clinic, the Mayo Clinic currently serves approximately 1.16 million patients annually, and the entire Mayo healthcare system employs more than 60,000 staff members, including 4,100 physicians and scientists. It has long ranked at the top of the list of America’s Best Hospitals due to its large-scale network and high-quality services. The secret to Mayo’s success lies in its high-quality, patient-centered care. Many patients who seek treatment at Mayo often express this sentiment: “I was moved by Mayo.”

At Mayo Clinic, “The Needs of the Patient Come First” is not merely a slogan on a sign, but a way of life and a model for delivering medical care.

In Shen Zhiwei’s description, he likens OASIS Healthcare to Mayo Clinic, Alibaba, and JD.com, proposing dual positioning as a medical service provider and a medical infrastructure service provider. While these two concepts may appear similar, they hold distinct meanings in his view.

He emphasized that OASIS Healthcare’s business model encompasses a nationwide chain of hospitals and clinics, along with a mobile healthcare platform, delivering one-stop comprehensive medical services including home nursing, in-home medical care, clinical treatment, expert consultations, health management, private physician services, medication delivery, medical emergency response, green-channel access, overseas medical care, and health insurance.

Medical infrastructure service providers refer to the nature of OASIS Healthcare’s services. Leveraging its offline physical hospitals and clinics, mobile health platforms, and cloud-based Hospital Information System (HIS) platform, OASIS Healthcare empowers doctors and nurses to practice independently, assists hospitals with marketing promotion and patient acquisition channels, connects them with global expert resources, and provides essential medical infrastructure including unified customer service, supply chain management, settlement platforms, and medical informatics systems.

OASIS Healthcare currently has over 50 hospitals and clinics either open or under construction across China, with six already operational in Beijing and eight more under development.

OASIS Healthcare's future plan is to establish 100 hospitals and 3,000 international community clinics across China.Provides in-home medical and nursing services across 2,000 counties in China; offers an independent practice platform for 3 million nurses, 2 million physicians, and 5 million care assistants; and delivers platform and channel services to over 10,000 institutions, including healthcare providers, insurance companies, and asset management firms.

Shen Zhiwei candidly stated that healthcare is not a sector where one can seek quick profits and immediate success. The challenges facing OASIS Healthcare will grow increasingly significant as its scale expands. Since self-funding can only support the establishment of a limited number of physical facilities, the company will shift toward collaborative models in the future. Initially, operations will be managed by the OASIS team, with later expansion potentially achieved through recruiting city partners or franchising. Shen Zhiwei emphasized, “Regardless of the model adopted, OASIS’s service philosophy and standards will remain unwavering.”