Yan Zhi'an, Founder of China's First Independent Urology Physician Group, Submits IPO Prospectus

Yan Zhian, Founder of the Chinese Urologists Alliance 

For Yan Zhian, retirement has been a rich and meaningful chapter of life. Each month, he sets aside dedicated time to meet for meals and heartfelt conversations with friends from the medical industry, all of whom have shared a 20-year bond with him. These individuals include his former apprentices, colleagues, and friends, most of whom now serve as directors or experts in the urology departments of major Grade 3A hospitals across Beijing.

Yan Zhian, former Director of the Department of Urology at Beijing Chuiyangliu Hospital. With 30 years of experience in urology, he possesses profound expertise in both theoretical knowledge and clinical practice, maintaining a keen understanding of the latest developments and research directions in the field. He has extensive clinical experience in the diagnosis and treatment of urological diseases. Mr. Yan has been awarded the Science and Technology Progress Award by the Beijing Municipal Government and Chaoyang District on multiple occasions. He has published nearly 20 academic papers, served as the editor-in-chief of Endourology, and contributed to the writing of monographs such as Diagnosis and Treatment of Urinary Calculi.

With them, Yan Zhian can not only reminisce about the past but also stay abreast of current developments in the healthcare industry.Although he has retired, he has always harbored an entrepreneurial dream and remains eager to contribute to China’s healthcare sector.

With the advancement of national healthcare reform policies, Yan Zhian responded to the call for reform by improving patients’ medical experience and better serving them.He began to plan: with the concept of win-win cooperation, he hoped to establish his own doctors' alliance with like-minded friends, namely a single urologist group.

One year later, his entrepreneurial dream came true. This marked the establishment of China’s first physician group in urology. From a specialty perspective, numerous specialized physician groups have emerged in China in recent years, including orthopedic physician groups, Donglei Neurosurgery Physician Group, Yongchun Men’s Plastic Surgery Physician Group, and Xuguang Oral and Maxillofacial Surgery Physician Group.

Amid a proliferation of physician groups, what distinguishes urology-focused physician groups? How do they generate revenue? Which physicians have joined their ranks? To address these questions, VCBeat conducted an exclusive interview with Yan Zhian.

Medical Group, i.e., an alliance or organization composed of multiple physician teams, may also be referred to as a “Physician Practice Group” or “Physician Practice Organization” in accordance with overseas market standards; it is translated into English as “Medical Group or Physician Group.”According to relevant statistical data, only 5.6% of physicians in the United States are directly employed by hospitals to date, while as many as 83% have joined physician groups. There are approximately 284,300 physician practice entities, of which 56.06% consist of a single practicing physician, and 2,936 physician groups comprise more than 20 physicians.

In China, “physician groups” may either be affiliated with hospitals or operate as independent physician organizations; they are generally independent legal entities structured under shareholding or partnership models. In September 2015, at a symposium on physician groups convened by the National Health and Family Planning Commission, participating experts and regulators established a basic definition comprising the following three key elements:

1. Physicians must serve as the primary subjects;

2. It shall be composed of at least two physicians;

3. It must be an industrial entity.

In Yan Zhian’s view, the essence of a physician group is group practice, as opposed to independent practice. Under group practice, physicians jointly calculate income and costs, share losses and medical risks, and share facilities, equipment, and patient resources.

One year later, the State Council issued the ““Healthy China 2030” Planning Outline》, it is worth noting that the Outline explicitly states: “Innovate models for the utilization, mobility, and service delivery of medical personnel, and actively explore physicians’ independent practice, individual physicians entering into contractual service agreements with medical institutions, or the formation of physician groups.”

This marks the first time that “independent practice” has been included in a national-level document, and also the first time that “physician groups” have been incorporated into such a document.

Amid the broader context of healthcare reform, the rise of “physician groups” is driven by both inevitable forces and contingent factors. Although currently still in its nascent stages, this trend has already sparked bottom-up and inward-out transformations. These changes are highly likely to impact the healthcare experience of the majority of people in the near future.

In terms of medical specialties and operational models, physician groups are categorized as either specialized or multi-specialty, and as either within or outside the public healthcare system. Examples include the Zhang Qiang Physician Group, Mingyi Zhudao, Donglei Neurosurgery Physician Group, Dajia Yilian, Heart Rhythm Specialist Physician Group (Hartrim), Shenzhen Bode Jialian Physician Group, and Renyu Physician Group. Among these physician groups, a significant number have attracted interest from venture capital firms.

Thus, having witnessed numerous mature cases of physician groups, Yan Zhian began to formulate specific plans: Who would participate? How would they participate? What benefits could they gain after joining?

Yan Zhian has long been a formidable force against disease, with particular expertise in the diagnosis and treatment of complex and critical urological conditions. He is highly proficient in endoscopic urological procedures, including transurethral resection for benign prostatic hyperplasia and cystoscopic resection techniques. Engaged in clinical practice, teaching, and research in andrology, he possesses profound expertise in the diagnosis and management of male sexual dysfunction and male infertility. He has pioneered various related diagnostic and therapeutic interventions, including penile vascular surgery.

With over 30 years of professional experience, he has not only acquired solid medical expertise but also built an extensive network within the healthcare industry.He established extremely stringent eligibility criteria for members of the physician group to ensure the quality of medical services. Candidates must hold positions at or above department director level in Grade 3A hospitals, and each director is admitted through a targeted invitation system. All participants hold equity shares, sharing in the benefits.

Subsequently, Yan Zhian gained the support of the directors of urology departments at more than 20 well-known Grade A tertiary hospitals in Beijing.In September 2016, Zhongmi (Beijing) International Medical Technology Co., Ltd. was established under the name “China Urologists Alliance,” becoming the largest single urologist group in China.

According to Yan Zhian,In addition to renowned experts from Beijing, chief physicians of urology departments from multiple Grade 3A hospitals in Hebei, Inner Mongolia, Shanxi, and the three northeastern provinces also participated.Its core members include senior chief physicians in the departments of urology and andrology from numerous hospitals, such as Peking University First Hospital, Peking Union Medical College Hospital, Peking University Third Hospital, Beijing Jishuitan Hospital, Peking University People’s Hospital, Peking University Cancer Hospital, the Chinese PLA General Hospital (301), Beijing Children’s Hospital, China-Japan Friendship Hospital (Ministry of Health), Beijing Hospital (Ministry of Health), Beijing Chaoyang Hospital, Beijing Tiantan Hospital, Beijing Friendship Hospital, Beijing Chuiyangliu Hospital, Beijing Electric Power Hospital, and General Hospital of Civil Aviation Administration of China.

“We are capable of performing all routine and complex urological surgeries, both domestically and internationally. These include laparoscopic and da Vinci robot-assisted procedures such as decortication of renal cysts, high ligation of varicocele, and adrenalectomy; endoscopic management of calculi via ureteroscopy and nephroscopy; transurethral resection of the prostate (TURP) and various laser therapies for benign prostatic hyperplasia; as well as authoritative treatments for complex genitourinary tumors, including resection of giant adrenal tumors, giant renal tumors, and extraction of vena cava tumor thrombi in advanced renal cell carcinoma,” said Yan Zhian.

For example, Li Jingmin, as one of the founders of the Urology Physician Group, was onceRenowned expert, former Director of the Department of General Surgery, and former Director of the Department of Urology.

Specializes in the diagnosis and treatment of urological and andrological diseases, with a particular focus on minimally invasive and eco-friendly therapeutic techniques for urinary tract tumors, calculi, and prostatic diseases. Pioneered ultrasound-guided transperineal cryoablation for intermediate- to advanced-stage prostate cancer in China, and is currently the leading expert in the country with the earliest adoption and highest volume of such procedures. Led the research project “Study on Flexible Ureteroscopic Diagnosis and Treatment of Urinary Calculi in Civil Aviation Pilots,” which was awarded the First Prize for Technological Innovation in 2013 by the Civil Aviation Medical Center of the Civil Aviation Administration of China.

He has successively received honors including “Advanced Worker of the Beijing Health System,” “Model for Patriotic Meritorious Service” conferred by the Beijing Federation of Trade Unions, and the “National May 1st Labor Medal.”With nearly 40 years of clinical experience, he has published more than 50 professional papers and was awarded the Second Prize for Scientific and Technological Progress at the ministerial level by the General Administration of Civil Aviation of China.As an editorial board member, he co-authored the Guidelines for the Diagnosis and Treatment of Andrological Diseases by the Andrology Branch of the Chinese Medical Association (People’s Medical Publishing House) and contributed to several other professional books, including the People’s Medical Publishing House edition of Diagnosis and Management of Complications in Urologic Surgery. He has repeatedly participated in advanced training programs at the Peking University Institute of Urologic Surgeons and the National “Jiangcai” Project for Urologic Surgeons. He is listed as a renowned expert on the China Urology Network.

“High-caliber physicians like Li Jingmin are abundant within our team.” Since establishing the physician group, Yan Zhian has never been concerned about a shortage of medical talent. With over 30 years of experience in the healthcare industry, he has saved countless patients and mentored numerous medical interns, many of whom have gone on to become department directors at prominent hospitals.

Therefore, regarding the operational model of physician groups,Yan Zhian opted for an asset-light business model. With a collaborative and open mindset, he leveraged his strengths while mitigating weaknesses, entrusting specialized tasks to professionals.

“Currently, the company has no operating costs, as most doctors are employed elsewhere. We only facilitate connections when users request consultations with specific experts. Over 90% of the fees paid by users go directly to the doctors.”

Patient onboarding can be completed via the internet,However, the provision of medical services still requires a physical hospital. Therefore, Yan Zhian is currently in negotiations with Beijing Henghe Hospital, aiming to establish it as the on-the-ground physical hospital for implementation.Located in the Dongdan business district at the heart of the capital, adjacent to Chang’an Avenue, this hospital is currently the largest high-end private general hospital in China.

It is reported that Beijing Henghe Hospital is a high-end, private, secondary general hospital integrating traditional Chinese and Western medicine, built in accordance with the international JCI hospital accreditation standards. The hospital adopts a differentiated and complementary strategy to traditional public hospitals, positioning itself as a premium boutique hospital offering specialized non-essential services. Henghe has established a robust platform featuring top-tier medical experts for outpatient consultations and surgeries, with 60 clinical departments, 228 beds, and a total construction area of 70,000 square meters.

The hospital operates ten medical centers, including the Distinguished Physicians’ Comprehensive Outpatient Center, Distinguished Physicians’ Surgical Center, Integrated Oncology Medical Center, Chronic Disease Management Center, Women’s Health Center, Complex Case Consultation Center, International Consultation and Referral Center, Henghe Traditional Chinese Medicine Clinic, and Academician Workstation. Adopting an international service model with an appointment-based system, the hospital ensures ample consultation time for each patient and provides a private, elegant healthcare environment.

In addition, Yan Zhian has also signed strategic cooperation agreements with Sunshine Financial Holdings Medical Investment Management Co., Ltd., Chengguo Doctor, 39 Internet Hospital, and Maidou Doctor. The aim is to establish multiple touchpoints for collaboration with internet healthcare providers and physical hospitals, exploring ways to improve patients’ medical experience in the future.

“In the future, I hope the platform can also integrate pharmaceuticals and medical devices to explore more revenue streams.”

We are a group of dream chasers, dedicated to contributing to China’s healthcare industry.

In response to the national call for healthcare reform, and to improve patients’ medical experience and better serve them, we have joined forces to establish our own physician alliance. We aim to contribute ideas and efforts to China’s new healthcare reforms and play our part in the development of internet-based healthcare.

We are a group of Chinese urologists with over 20 years of professional experience. We have witnessed the advancement of China’s medical history and treated numerous patients, yet we feel remorseful for being unable to contribute more effectively our modest efforts.

We aspire to forge a better path, dedicating our technology to patients and saving more lives during our lifetime. United by shared ideals and common goals, we strive through our endeavors to blaze a visible trail of hope; even in the face of failure, we hope that the lessons learned will benefit those who follow.

We aim to leverage our technical and medical expertise to help more patients. We invite more like-minded individuals to join us, as individual efforts are limited; only through collective wisdom and collaboration can we forge our own path, optimize resource integration, and achieve success.

We are building an open platform and eagerly invite like-minded professionals who share our vision to join us. We look forward to collaborating with more internet healthcare companies to identify common ground and achieve win-win outcomes.

As pioneers of China’s healthcare reform, we aim to alleviate patients’ suffering and maximize the value of our technology in serving them.

We yearn for success, but we cherish our dreams even more. We hope that in a few years, we will all witness together the realization of our dreams and our ultimate success.