Almond Doctor Raises Over RMB 15 Million from 243 Physicians in 30 Days with Innovative Open Partnership Clinic Model

Dr. Martin, Founder of Xingren Doctor

In the mobile health industry, the number of physicians often determines the size of a doctor-patient platform's user base.

Since September 2014, Dr. Martin Shen and Lin Xu have co-founded Xingren Doctor, a physician-exclusive tool designed to enhance work efficiency and facilitate post-consultation doctor-patient communication.

Focusing efforts on the physician side,As of the end of 2016, the number of physicians with real-name registration and practice certification exceeded 420,000, covering more than 20,000 medical institutions across China.

Almond Doctor has not only garnered a large fan base among physicians but also received acclaim in the capital markets.Having completed a RMB 200 million Series B financing round, the company has secured cumulative investments of approximately RMB 230 million.

Capital infusion and a large physician base are not, however, the most notable achievements of Xingren Doctor. According to Martin,Since September 2016,Almond Doctor has launched a recruitment campaign for Almond Clinic partners across core cities in China,A co-construction fund for outpatient clinic development was established, allowing physicians to contribute capital. In the month of the campaign, contributions to the co-construction pool surpassed RMB 40 million. Physicians actively supported the development of Xingren Outpatient Clinics and demonstrated strong interest in the innovative partnership model.

toEarly 2017, Xingren selected Shanghai, Chengdu, Shenzhen, and Guangzhou as the first batch of cities for the development of Xingren Partner Clinics, and officially launched recruitment in March.Within just 30 days, 243 physicians signed on as outpatient partners, breaking away from the conventional employment model between doctors and clinics.

Martin remarked with deep emotion, “It is precisely these frontline physicians who best understand the future and value of Xingren. The successful launch of the Xingren Outpatient Program would not have been possible without the steadfast support of all the doctors and relevant stakeholders. Xingren remains fully committed to working hand in hand with everyone to pioneer new frontiers in China’s healthcare industry!”

From establishing an online presence to expanding into offline clinics, and from platform-based physicians to clinic partner-physicians, Almond Doctor has disrupted the traditional physician employment model by upgrading directly to a co-ownership partnership structure. In step with the new healthcare reforms, Almond Doctor continues to innovate and stay at the forefront of the industry.

As internet hospitals flourish yet remain shrouded in confusion,In 2017, Martin quietly expanded into the internet hospital sector. Through its construction and model innovation, Xingren (Almond) is once again poised to lead the industry toward a more sustainable and correct direction.

So, how exactly does the partner-co-built clinic model operate? What benefits does it offer to physicians? And how does it support the implementation of healthcare reform strategies aimed at promoting multi-site practice for doctors or enabling employed physicians to open their own clinics? To address these questions, VCBeat conducted an exclusive interview with Martin, founder of Xingren Doctor.

With the successive release of policies on multi-site practice and in-service doctors opening clinics as part of the new healthcare reform, it seems to herald that doctors within the public system will move outside the system, seeking “freedom” and “dreams” in their professional practice.

Ideals are full and plump, but reality is harsh. The policy on physicians’ multi-site practice was promulgated in 2009. Eight years later, according to an investigation by Shaanxi Daily, as of November 2016—nearly one year after the issuance of the Implementation Opinions on Physicians’ Multi-Site Practice in Shaanxi Province (Trial)—the Administrative Measures for Physicians’ Multi-Site Practice in Xi’an City (Trial) were released.Two months later, the reporter learned from the Medical Administration Division of the Xi’an Municipal Health and Family Planning Commission that only one person was currently processing the relevant application procedures, while several others had made inquiries.

In fact, multi-site practice by physicians had already been piloted in Shaanxi Province prior to the release of the “Implementation Opinions on Multi-Site Practice by Physicians in Shaanxi Province (Trial)” in March 2016.As early as 2012, Xi’an encouraged physicians to practice at multiple sites in Yanliang District and Zhouzhi County, but virtually no one applied.

Why have doctors remained silent and unwilling to embrace mobility even when given the option of independent practice?

The primary obstacle to multi-site practice stems from the conflict of interest between physicians and their primary employing hospitals. With major hospitals operating at full capacity, these institutions naturally expect doctors to devote themselves entirely to their work there. On the other hand, physicians find it difficult to forgo the various benefits offered by public hospitals, as critical career milestones—such as professional title evaluations and the establishment of academic standing—must be achieved within the state-run system.

For practicing physicians opening clinics, the primary challenge they face is funding.“Establishing and operating an outpatient clinic requires a significant investment of time and financial resources,” said Dr. Martin. He has crunched the numbers: setting up and launching a typical outpatient clinic costs approximately RMB 1.2 million, including at least RMB 600,000 in initial setup costs and RMB 600,000 annually for rent and operational expenses. Even under favorable operating conditions, there is no possibility of profitability during the first three years.

Given the scarcity of third-party diagnostic and testing service providers catering to primary care clinics in China, these clinics have very limited scopes of practice. Furthermore, addressing liability and risk remains a significant challenge.Active physicians are deeply concerned about “earning money only to die before they can spend it,” which is why nearly all those currently engaging in multi-site practice or opening clinics are retired senior doctors.

In the face of resistance to physicians’ multi-site practice, an increasing number of online mobile healthcare platforms are shifting their focus offline. For instance, Chunyu Doctor, DXY Clinic, and Penguin Doctor have successively established physical clinics. Penguin Doctor has also introduced a DocWork model featuring shared workspaces for full-time physicians and doctors from tertiary Grade A hospitals, which closely mirrors Almond Doctor’s first multi-site practice WeWork-style outpatient clinic opened in Shenyang in July 2016. As more players enter the market, what strategic advantages does Almond Doctor bring with its offline expansion and the launch of the upgraded “Partner Outpatient Clinic” model?

Unlike other players, Xingren Doctor’s multi-site practice studios remain focused on the physician side, adopting the same strategy as its online platform.Addressing concerns about physicians practicing at multiple locations, Xingren Doctor pioneered the partner clinic model, leveraging partnerships with physicians (Core Resources in the Healthcare Sector) and thus was the first to implement this model. It not only fulfills physicians’ entrepreneurial aspirations and meets the demand for multi-site practice, but also does not interfere with their work at their primary hospitals, thereby achieving multiple benefits.

Currently, most clinics in the market maintain an employment-based relationship with physicians, hiring them as employees through competitive compensation packages.

The clinic operates at a loss for the first three years, while also bearing high costs such as substantial physician salaries and facility operations, resulting in relatively high overall expenses. Coupled with a shortage of patients, it ultimately becomes indistinguishable from Putian-affiliated hospitals, as it must rely on advertising to attract patients.

The core objective of Xingren Doctor is to attract physicians, with the entire studio centered around them.For instance, physicians who have already built a patient base through online apps also seek to engage in comprehensive diagnostic consultations with patients in an optimal offline setting and within appropriate timeframes. This includes detailed discussions on specific treatment plans and the implementation of preliminary therapeutic interventions.

Assist physicians in leasing premises, overseeing renovations, and recruiting staff such as nurses, accountants, secretaries, and receptionists, while also providing ongoing maintenance and management services. “In our clinics, the physician is the owner; all staff we hire are employees of the physician and serve the physician.”

Doctors can even achieve “zero-cost, ready-to-practice” entry, with just one clinic day per week yielding an annual net income of nearly 150,000 yuan.

As shown in the figure:

This physician partnership model offers the following three advantages:

First,Partners jointly bear the operational risks and liabilities of the partnership enterprise.Therefore, the risks and liabilities of a partnership are more dispersed than those of a sole proprietorship.

Secondly, partners jointly contribute capital, operate the partnership together, share profits, and bear risks collectively, thereby enjoying advantages in terms of funding.Partners can pool their capital, which is superior to sole proprietorship.

Finally, it serves to motivate employees and help stabilize the team.

Therefore, Martin confidently stated, “It will certainly be no worse than any other outpatient clinic, but our costs will definitely be much lower.” As one of the core team members involved in planning the establishment of United Family Healthcare’s Shanghai branch and its first Shunyi outpatient clinic in 2002, he possesses certain advantages in understanding the processes for setting up offline medical institutions and in accumulating related resources.

Leveraging Martin’s personal experience and the growing number of physicians on the Almond Doctor platform, Almond Clinic opened its first facility in Shenyang on July 7, 2016, and subsequently expanded recruitment efforts across 33 major cities throughout China, aiming to replicate the Almond Clinic model.

Almond Doctor stated that the opening of its Shenyang outpatient clinic attracted significant interest from individuals across China, many of whom expressed their desire to establish Almond clinics in their respective cities. This demand led to the launch of this new initiative.

Shenyang Xingren Clinic covers an area of over 600 square meters, featuring 10 consultation rooms, 2 treatment rooms, and a multi-functional area, with comprehensive medical equipment. The interior environment and decoration style are minimalist, with a color scheme dominated by natural wood tones.

Martin told reporters that Xingren Shenyang Clinic is a high-quality multi-site practice clinic built to international standards. It features internationally advanced medical equipment, a professional medical management team, and service processes characterized by high standards and strict requirements, all while providing warm and comfortable patient-centered care. The clinic has now entered a stable phase of normal operations.

In just 45 days since its opening, the clinic has attracted hundreds of outstanding physicians to join its network, with over 500 patients seeking consultations, treatments, and surgeries. On average, each patient generates RMB 200–300 in outpatient revenue for Xingren Clinic.

In addition to Dr. Martin, Almond Clinic boasts a highly efficient operations team. While the average timeline for establishing a standard clinic is 1.5 years, Almond Clinic commenced its soft opening within just five months, thanks to the team’s effective planning.

Subsequently, after Almond Partners Clinic launched its partner program in Shanghai, Chengdu, Shenzhen, and Guangzhou, physicians demonstrated high levels of enthusiasm for participation. Profit distribution at the clinics is allocated according to pre-negotiated shares based on capital contributions ranging from RMB 20,000 to RMB 2 million. For instance, some physicians hold a 50% share equal to that of the clinic, while others hold 60% or 70%.

After just 30 days of recruitment,243 physicians injected over 15 million in capital and signed on as outpatient clinic partners.Physician capital contributions reached 136% of the original target, significantly exceeding expectations. “In some cities, physicians submitted their funds; however, as Xingren Clinic had no implementation plans in place, all funds were fully refunded to the physicians.”

This event reveals that most physicians still aspire to open their own clinics, driven by an entrepreneurial dream and a desire to contribute their share to the healthcare cause.

“It is our frontline physicians who best understand the future and value of Xingren. The successful launch of the Xingren Outpatient Program would not have been possible without the steadfast support of all the doctors and relevant stakeholders. Xingren remains fully committed to working hand in hand with you to pioneer new frontiers in China’s healthcare industry,” said Dr. Martin, with deep emotion.

In fact, within the overall strategic plan of Xingren Doctor, the offline component (Xingren Clinics) constitutes only a part.From the Development Path of Xingren Doctor:

Phase 1: Develop the app,We aim to provide physicians with a helpful app tool that enables them to better separate work from personal life, more effectively manage their patients and practices, and expand their professional networks.

Phase II: Providing services to physicians, serving as their advisors and partners.Communicate with physicians to help them understand both patient needs and their own professional requirements; guide physicians in adopting “seller-side operational” strategies to build their personal brands; and jointly navigate the new opportunities arising from future healthcare reforms, thereby securing a brighter future for physicians.

“We spent a year covering more than half of China’s key hospitals and core physician groups. The Xingren Doctor app has surpassed 420,000 users, with a monthly active user rate nearing 60%.”“Martin said. Taking Beijing as an example, the total number of doctors in Beijing exceeds 60,000, while the number of Xingren Doctor platform users in Beijing has already surpassed 35,000. The physician user coverage rate of Xingren Doctor in each provincial capital city reaches as high as 40%-60%.”

Building on the solid foundation established in the previous two steps and leveraging its extensive user base, Martin launched Almond Clinics to provide an offline environment supporting physicians’ multi-site practice. This initiative completed the online-to-offline (O2O) business model loop for mobile healthcare, enabling doctors to serve their patients not only through online consultations but also via in-person diagnosis and treatment at physical clinics.Alternatively, if physicians have the need to conduct in-person consultations with patients, they can schedule appointments online in advance and then arrange for patients to visit.

For example, there is a physician on the Xingren Doctor platform who resides in a third-tier city yet demonstrates high acceptance of and proficiency in mobile healthcare. For every patient inquiry received online, he adds them to his dedicated patient group to facilitate timely communication and interaction.

One day, he suddenly went to a certain village and opened a clinic, with revenue exceeding 8,000 yuan in the first month of operation. Most of the patients who visited the clinic came from the patient groups he managed and served using Xingren Doctor (Almond Doctor). Having previously received his treatment and recognized his medical expertise, these patients chose to visit his new clinic after it opened.

“We aim to build an integrated online-to-offline platform for doctor-patient communication. Online, we provide consultation services; offline, we leverage Xingren Clinic to establish a multi-site practice platform for physicians. This enables comprehensive patient follow-up, medication reminders, and scheduled return visits, thereby creating a complete healthcare journey.”