Jiuzhou Tong Secures RMB 123 Million Contract for China's Largest Elderly Care PPP Project Amid Industry Transformation

During the rapid phase of population aging, insufficient supply of healthcare and elderly care resources, coupled with a low level of information technology application, has made it difficult to meet the growing public demand for health and elderly care services. Consequently, innovating diversified models of elderly care has become a key development direction for the industry. On February 6, the Ministry of Industry and Information Technology, the Ministry of Civil Affairs, and the National Health and Family Planning Commission jointly issued the Action Plan for the Development of the Smart Elderly Care Industry (2017–2020), signaling the imminent opening of a smart elderly care market worth trillions of yuan. With favorable policies continually supporting the elderly care sector, enterprises are actively expanding their presence in this field.

According to the announcement released on the evening of February 23, the Wuhan Civil Affairs Bureau signed an agreement with Jointown Pharmaceutical Group Co., Ltd. and Shanghai Shoushoutang National Medicine Co., Ltd. for China’s largest elderly care public-private partnership (PPP) project. The project will establish a nursing home with over 1,000 beds in Building B of the Wuhan Social Welfare Institute. With a total investment of approximately RMB 123 million, Jointown Pharmaceutical and Shoushoutang will collectively hold a 90% equity stake, while the Wuhan Municipal Government will hold the remaining 10%.

PPP Model, Public-Private Partnership (public-private joint venture model), refers to the transfer of certain government responsibilities to social entities (enterprises) through franchise rights. The government and social entities establish a community relationship characterized by "benefit sharing, risk sharing, and full-process cooperation," allowing both parties to leverage their respective advantages—reducing the government's fiscal burden and lowering the investment risks for social entities.

“Private capital can complement government agencies through mutual strengths,” said Ke Xianjun, General Manager of Jointown Medical Investment Management Co., Ltd. “Jointown leverages its advantages in funding, pharmaceuticals, and medical equipment to build an integrated professional platform for institutional, community-based, home-based, and internet-enabled elderly care, using welfare institutions as a foundation.”

Jointown Pharmaceutical Group is the largest private enterprise in Hubei Province, with strengths in medical facilities and equipment, professional nursing, and information platform development. Seizing this opportunity to actively explore new models of elderly care services will enable the company to accumulate industry experience and lay the foundation for further expansion into the elderly care market. Shanghai Renshoutang is the largest private chain of elderly care institutions in Shanghai, operating 10 nursing homes with over 3,000 beds and boasting 23 years of operational experience in elderly care. The strong partnership between these two entities and the Wuhan Civil Affairs Bureau will help address various challenges faced by the government in the elderly care sector, such as fiscal expenditures and the transformation of governmental functions, thereby improving the quality and efficiency of elderly care services. Under the terms of the cooperation, Renshoutang will be responsible for the daily operation of the nursing homes, leveraging its comprehensive expertise in elderly care and medical nursing, while Jointown Pharmaceutical Group will utilize its specialized capabilities in pharmaceuticals, hospital management, and medical equipment to provide citizens with high-quality integrated services encompassing elderly care, rehabilitation, and wellness.

Wuhan Social Welfare Institute, located in Jianghan District, is a comprehensive welfare facility integrating smart elderly care, rehabilitation, medical services, and leisure entertainment. It is reported that the two winning bidders are undertaking intelligent system deployment, equipment procurement, and medical device acquisition on top of the building’s existing renovation to establish a new benchmark for nursing homes in Wuhan. The project is scheduled for completion and public opening before October. Upon completion, the nursing home will feature star-rated rooms equipped with smart hardware and software facilities, an on-site Level II nursing hospital, and 24-hour butler services.The project has been selected as a national-level PPP demonstration project (third batch) and a Hubei provincial-level PPP demonstration project (first batch).。