Home China's Seven Major Physician Groups Form Alliance to Advance Independent Medical Practice and Healthcare Innovation

China's Seven Major Physician Groups Form Alliance to Advance Independent Medical Practice and Healthcare Innovation

Feb 29, 2016 09:23 CST Updated 09:23

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On February 27, 2016, the inaugural conference and establishment ceremony of the Chinese Physician Group Alliance were held at the headquarters of the Zhang Qiang Doctor Group in Beijing. The founding of the Chinese Physician Group Alliance symbolized that the development of physician groups had reached a new level. VCBeat’s VB Group interviews were honored to witness this significant moment alongside everyone and were the first to release online coverage of the alliance’s establishment. What is the Physician Group Alliance? What are their objectives? How do they seek development? Let us listen to the thoughts and insights of these courageous pioneers.
Interview Highlights
Zhang Qiang: Today is a very special day, as the China Doctors Group Alliance announced its establishment in Beijing.

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The Chinese Doctors Group Alliance is a self-organized coalition of seven physician groups, including the Private Doctor Studio Group, Donglei Brain Specialist Physician Group, Woyi Gynecology and Obstetrics Renowned Physicians Group, Yuke Hernia Surgery Physician Group, Yongchun Men’s Aesthetic Surgery Physician Group, and Xuguang Oral and Maxillofacial Surgery Physician Group. The alliance is still in its nascent stage.

Overall, the establishment of this Physician Alliance aims to explore new models for the future practice of physicians in China. In fact, physician groups have emerged in China only recently, so there is no established model to date; current forms include those within the public healthcare system, outside the system, and hybrid models. Each physician group is currently gaining experience through trial and error, while also encountering various difficulties and challenges. The founders of the physician groups participating in the alliance will share their insights and engage in discussions with everyone here today.

We now invite Professor Lin Feng to discuss the background behind the establishment of our Physician Group Alliance, as well as our future plans for the alliance.


Private Doctor Studio Group, Lin Feng:


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As we currently lack a comprehensive model, each physician group has its own distinct characteristics, and the difficulties and challenges we face vary. Therefore, we need a communication platform to build consensus. Furthermore, by establishing an alliance, we can facilitate mutual communication and share experiences gained during our development—such as how to coordinate with the government, how to conduct public outreach, and how to engage with the media to promote our positive impact. These are the roles that the Physician Group Alliance will play in the future.

Zhang QiangNext, we invite Professor Xie Rushi to discuss the support received for the establishment of the Physician Group Alliance and to share key policy insights regarding our interactions with the government.


Private Physician Studio Group, Xie Rushi:


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At today’s inaugural meeting, I made a remark that all those who study or practice medicine are driven by a deep sense of mission. Indeed, it is with this same commitment that we have come to Beijing to establish China’s first Alliance of Physician Groups. Yesterday, we reported our proposal to form the Chinese Physician Group Alliance to the leaders of the Shenzhen Municipal Health and Family Planning Commission, who promptly sent us a letter of congratulation; this letter has already been circulated across our various group chats. Moreover, this morning, Mr. Liao Xinbo also sent us his congratulations.

Zhang QiangNext, we invite Dr. Zhang Ziqian, a member of the “Three Musketeers,” to share his perspective on the significance of establishing a physician alliance from a doctor’s viewpoint.


Private Physician Studio Group, Zhang Ziqian:


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Having just listened to the reflections of our two co-founders, I would now like to share my own perspectives from a physician’s standpoint.

As is well known, physicians have long operated as employees of healthcare institutions. This institutional employment model meant that they did not need to concern themselves extensively with matters beyond clinical practice. However, transitioning from an institutional employee to an independent practitioner in the broader society introduces a range of new challenges, including issues related to compensation and financial management, as well as complexities in interfacing with commercial insurance providers and managing medical affairs.

“After joining the China Doctor Group Alliance, we can share appropriate resources to facilitate our transition from institution-affiliated physicians to independent practitioners, thereby maximizing convenience and truly unleashing physicians’ productivity. This allows high-quality doctors to focus on clinical practice—a profound insight I have gained.”

Zhang Qiang: Next, we are honored to invite the renowned Dr. Gong Xiaoming to share his insights on how he transitioned from being an obstetrics and gynecology specialist to becoming a freelance physician, then ventured into internet entrepreneurship by founding Fengxinzi. Let us hear his thoughts.


Woyi Gynecology and Obstetrics Renowned Physicians Group: Gong Xiaoming


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Today, I am representing the Obstetrics and Gynecology Physicians Group. Our co-founder, Professor Kang Kai, is also present here. Zhang Qiang was a mentor of mine during my time practicing outside the public healthcare system. Two years ago in Shanghai, when I discussed multi-site practice with him, he advised me to pursue independent private practice. Indeed, since last year, I have been fully engaged in independent private practice.

Seventeen years ago, I founded the Chinese Obstetrics and Gynecology Network. In the course of this endeavor, I identified a critical patient need during medical consultations: access to healthcare services provided by renowned physicians. Consequently, we began preparing for the establishment of an Obstetrics and Gynecology Physicians Group last year, which will be officially launched on March 16.

Unlike other physician groups, our physician group brings together more than 90 renowned obstetricians and gynecologists from across China, including Taiwan and Hong Kong, onto a single platform. We aim to provide these distinguished specialists with a medical practice space outside the traditional public healthcare system, while also enabling them to deliver technical expertise and support to grassroots hospitals. This is our recent initiative, and we look forward to your continued support. Thank you!

Zhang Qiang: Next, we are honored to invite Professor Song Donglei, a renowned neurosurgery expert from Shanghai. He officially established Donglei Brain Hospital last year, and as far as I know, his business has been growing rapidly. Here, we invite him to introduce his current situation and future plans.


Song Donglei, Founder of Donglei Brain Doctors Group


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It has been nearly five months since our Neurosurgeons Group was established in September, and we have experienced rapid growth. We have adopted the PHP model proposed by Dr. Zhang Qiang, under which our physician group enters into professional contracts and agreements with various hospitals. Leveraging the hospitals’ operating rooms, nursing staff, and anesthesia teams, we provide surgical specialists, management physicians, and patient referrals. This creates a win-win partnership with the hospitals. Our business has expanded quickly; within five months, we have performed 150 neurosurgical procedures, and we have essentially reached our break-even point.

I believe this is primarily based on several key factors. First and foremost, we possess strong technical capabilities, and delivering effective patient care is our top priority. Second, we rely on high-quality service. We consistently emphasize to our partner platforms the importance of promoting our philosophy of premium service, ensuring that patients enjoy a superior medical experience throughout their hospitalization and perceive the care process as seamless. On this basis, patients are fully accepting of slightly higher prices.

Of course, we also possess a certain degree of market awareness. As the saying goes, “Good wine needs no bush.” I am confident that once patients become aware of our presence, our expertise and services will attract a significant influx of patients. Some patients are unable to secure admission at large hospitals, or even if they do, they fail to receive high-quality, transparent care; consequently, they turn to us in search of better services.

Therefore, whether for independent practitioners or physician groups, we should remain confident about our future development. In the years ahead, we will expand our operations and even recruit more physician groups to join our network, thereby promoting our high-quality services and philosophy—particularly the harmonious healthcare model that creates a win-win situation for both physicians and patients. This is what we aim to achieve in the future.

Zhang Qiang: Next, let’s invite Dr. Bao Yuke to share whether his team encountered any challenges during the transition to operating as an independent physician group, and how he approached these issues.


Yu Ke Hernia Surgeon Group: Bao Yuke


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During the operation and development of physician groups, I have observed certain differences in the specific designs and processes across various medical specialties.

Therefore, we considered whether it would be more ideal to establish separate physician groups during the development of different specialties, with each group focusing on building its own team. Based on this rationale, we began independent operations in October 2015.

During this process, we also encountered some new challenges. Previously, under the Zhang Qiang Doctor Group, we had a unified team for customer service and integrated marketing and administrative departments. Following the separation, we need to rebuild these structures from scratch, which is a process that takes time.

After nearly four months of development, we have established two clinical bases in Beijing’s Chaoyang District and Shanghai’s Pudong New Area. We now have an excellent team comprising customer service representatives and assistants. Following company registration, we will staff various administrative and marketing roles, making our organizational structure increasingly clear.

As physician groups have become more specialized, we have gained market recognition and seen a steady increase in business volume. It is evident that patients increasingly trust specialized physician groups. I believe this success stems from the professionalism demonstrated in our operations and services, as well as our dedication to the entire healthcare process.

The establishment of the Physician Group Alliance today has provided us with an excellent platform for learning and exchange. I believe this is a very valuable opportunity for me. Thank you all.

Zhang Qiang: As a shareholder, Dr. Zhang Qiang Physician Group has witnessed the entire development process of Dr. Bao Yuke Surgical Group. In the future, it will operate as an independent physician group, and we believe that its initiative will drive even greater growth.

Next, we welcome the founder of the Yongchun Men's Plastic Surgery Physicians GroupWang YongchunDiscussing the establishment of a plastic surgeon group: how to carve out a niche in the market and what are the future plans?


Wang Yongchun, Founder of the Yongchun Men's Plastic Surgery Physicians Group:


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Currently, plastic surgery is often equated with cosmetic procedures, and cosmetic procedures are frequently associated primarily with women. How can male plastic surgery establish its market positioning? How can it expand its customer base? And how can it shape its service categories? These are critical questions that physicians must consider if they wish to practice independently.

Is cosmetic surgery necessary for men? I believe the answer is unequivocal: yes, men also require cosmetic procedures. However, no professional physician group in the market has thoroughly studied the psychological drivers, aesthetic values, target demands, and treatment differences specific to male patients. This represents a gap in the field, and such gaps signify your potential for growth and opportunity.

With a background as a plastic surgeon, I performed all types of surgeries, including cosmetic procedures for women, before leaving the public healthcare system. After departing from the system, acquiring our target customer base in the market became a pressing practical challenge. In light of this, we conducted research on plastic surgery trends in Western countries, particularly in developed nations in Europe and the United States. Reports from the U.S. indicate that men accounted for 46.6% of cosmetic procedures over the past five years. Based on these findings, we established a clear strategic positioning: focusing on male cosmetic surgery.

In the future, when we refer to male aesthetic enhancement, we are addressing a broader concept. Medical plastic surgery is merely one component—or arguably the core component—of this field. Our professional aesthetics division will adopt a group-based approach to comprehensively design and enhance men’s overall image, which represents our future direction for expansion. In this regard, our key to sustainability lies in delivering the right products to the right target audience. Thank you all.

Zhang Qiang: I’d like to ask Dr. Wang, why did you take the initiative to organize the Male Physicians Group? Do you have any technical advantages in this area, or was it simply a matter of survival—since others focus on women’s health, you chose to focus on men’s health?

Wang Yongchun: Dr. Zhang raised an excellent question. After establishing this concept, how to translate it into a product that meets market demands is the primary consideration for us.

Taking into account the individual characteristics of male patients, we adopt a holistic approach from a technical perspective, whether involving surgical or non-surgical interventions. Specifically, we provide comprehensive solutions for male facial rejuvenation—a area with significant market demand—by prioritizing surgical procedures while integrating various minimally invasive and non-invasive techniques. Many current aesthetic treatments on the market are fragmented and lack a holistic perspective; for instance, some providers merely perform facelifts in response to wrinkles or apply laser therapy for skin pigmentation without considering the patient’s overall condition.

Furthermore, there are notable differences between men and women in the field of medical aesthetics. With this in mind, we have developed a comprehensive suite of services tailored specifically for male patients, addressing their most pressing needs. This focus represents our core competitive advantage and serves as an effective strategy for independent practitioners to establish themselves in the market.

Zhang Qiang: Dr. Wang just discussed men’s aesthetic surgery as his market entry point, a strategy that I believe is worth referencing and reflecting upon for many physician groups. Additionally, Dr. Wang has accumulated extensive experience in men’s aesthetic surgery, which I consider a significant factor in his decision to choose this niche as his entry point.

Next, we invite Dr. Lu Xuguang, founder of the Xuguang Oral and Maxillofacial Surgery Physician Group and our final featured physician group founder, to discuss the current advantages and challenges facing physician groups.


Lu Xuguang, Founder of the Xuguang Oral and Maxillofacial Surgery Physician Group:


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Lu Xuguang: In the second half of last year, I left Peking University School of Stomatology and Hospital, where I had worked for nearly five years, to join a physician group.

I believe that for a general dentist, leaving the public healthcare system is not particularly difficult; however, it poses a significant challenge for oral and maxillofacial surgeons. They must either transition to general dentistry or remain within hospital settings. This is because oral and maxillofacial surgery requires extensive multidisciplinary collaboration, making it difficult to perform in outpatient clinic settings. It can only be carried out in sufficiently large institutions equipped with adequately sized operating rooms and the necessary specialized instruments.

With the emergence of physician groups as an option, we are now in a position to collaborate with hospitals under favorable terms, thereby creating optimal conditions for us to perform exceptional surgeries.

Therefore, I hope that professionals in the field of oral and maxillofacial surgery will boldly step outside the traditional system. Instead of relying on dental practices, which may not be their area of expertise, to make a living, they can leverage their stronger skills in oral and maxillofacial surgery to serve society and the general public.

Zhang Qiang: I have another question. There is a severe shortage of dentists in society. At that time, why did you choose to establish an oral and maxillofacial surgeon group as an entrepreneur, rather than working directly in a clinic or a hospital? What was your rationale behind this decision?

Lu Xuguang: Indeed, for many oral and maxillofacial surgeons, transitioning to clinic-based practice is a promising career path. Many make this move due to income considerations or institutional mechanisms, seeking a more comfortable and less demanding lifestyle.

However, given the current situation in China, there is a severe shortage of oral and maxillofacial surgeons, while the patient volume remains extremely high. Many patients face long waiting times for hospitalization, which delays their treatment. Therefore, we are committed to creating a new platform for oral and maxillofacial surgeons through our efforts, enabling them to better serve patients while earning the income they deserve.

Zhang Qiang: From my own experience, establishing a physician group at this stage requires not only technical expertise but also ideals and dreams, as the national environment and ecosystem are still immature. The pressure involved in founding a physician group is immense, both psychologically and mentally.

Q&A Highlights
What is the collaboration model of the Physician Group Alliance? Does it involve joint procurement, patient referral sharing, signing contracts with external parties as a unified entity, or even integrated operations and consolidated financing?
Zhang Qiang:In fact, our alliance is a loosely structured organization. Within this framework, different physician groups have their own development models; however, we share common values and mutual understanding.

In certain respects, we are bound by the constraints of our own alliance. I believe that patient resource sharing will evolve naturally over time. In fact, even before the alliance was formally established, I would refer neurosurgical patients in Shanghai to Dr. Donglei’s Brain Hospital, given my thorough understanding of their capabilities. Thus, the sharing of patient resources has been a natural progression.

Collective contracting is also a possibility. In fact, we have a special guest with us today: Dr. Lisa Li, President of United Family Healthcare. She hopes that our Physician Group Alliance can participate in the development journey of United Family Healthcare.

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Lin Feng:The primary objective of establishing the Physician Group Alliance is to facilitate resource and experience sharing. We welcome other physician groups to continuously join and strengthen the alliance. As the alliance integrates more resources, patient trust in physician groups will correspondingly increase. Furthermore, through collaboration among physician groups, we can better address challenges that individual groups cannot resolve on their own. This represents a key initiative for our future development.

Many physicians are asking whether they can join the Physician Group Alliance, given that they specialize in fields such as urology, dentistry, and dermatology. Has the Physician Group Alliance considered the development of these other specialties?
Zhang Qiang:Regarding issues in other specialties, the first step is for these established specialties to form an alliance. This alliance will undoubtedly need to expand in the future by recruiting more physicians to create a large-scale national coalition. Only in this way can we secure support and promotion from both the government and the public for our new model.

Regarding how professionals from other specialties can join, my personal view is that each specialty should have its own leader to establish a dedicated physician group. Once these groups are formed, they can join our alliance, becoming part of a larger family. Furthermore, during the establishment of these specialized physician groups, our alliance can provide support, such as offering a series of methods and best practices for incorporation, registration, operations, marketing, and management. Ultimately, we aim to work together to scale this initiative.

Furthermore, I would like to add that we do not exclude physician groups affiliated with public healthcare institutions. Both physician groups within and outside the public system are welcome to join this alliance to jointly explore development opportunities. However, to ensure our quality standards, membership will be subject to specific bylaws, and only those meeting these criteria will be admitted.

Of course, a key objective of the alliance is to assist and support more physicians in transitioning to freelance practice, ultimately evolving into a broad coalition encompassing all medical specialties.

3. Some experts argue that current multi-site or independent practice models are merely stopgap measures, and that the most advanced healthcare model is one grounded in infrastructure-supported “multidisciplinary integrated diagnosis and treatment,” rather than fragmenting into numerous small, independent entities. What is your view on the “multidisciplinary integrated diagnosis and treatment” model?

A physician group is by no means a small, independent organization; it enables physician groups with deep vertical expertise to achieve horizontal expansion. In essence, its ideal future state is that of a multidisciplinary collaboration platform.

What does the professional development roadmap look like for physicians within physician group alliances? How can medical students and early-career physicians contribute to this emerging trend of physician groups? Specifically, how can they get involved, and what roles can they play?
Gong Xiaoming:We should not merely focus on current practices in China; instead, we need to examine the professional development pathways of physicians in mature healthcare systems worldwide. After graduating from medical school, young doctors must undergo rigorous training, including additional fellowship training even after completing their residency. In other words, it is virtually impossible for a physician to practice independently before achieving expert-level competence.

When our physician group expands to the scale of Taiwan’s healthcare system, it will be capable of conducting comprehensive training for physicians within the group, particularly specialized training for specialists. However, in the short term, such an arrangement is not feasible in China. For young physicians today, the key priority is to diligently hone their clinical skills, enhance their ability to care for patients, and cultivate a patient-centered mindset.

Bao Yuke:I believe young physicians can also achieve significant professional growth within physician groups, but this depends on the scale of the group and its patient volume; a tailored approach is essential.

"We can also handle physician training in-house. All the physicians present here are founders, doctoral supervisors, and master’s supervisors, fully capable of training physicians. There may be some differences between our training approach and that of public hospitals, as we place greater emphasis on clinical training. I believe that as our physician group expands, it will provide increasing training opportunities for young physicians. Although we are still in the start-up phase and currently lack such capacity, this capability will certainly be developed in the future."

Zhang Qiang:Regarding the cultivation of young talent, I strongly concur with the remarks made by the two professors. The knowledge and skills that young physicians acquire outside the public healthcare system are often unattainable within the system over an entire career. Therefore, from this perspective, the past concern that leaving the public system would lead to fewer academic opportunities is, in my view, not determined by the system itself, but rather by individual factors and the physician group to which one belongs.

Therefore, I believe that the future training of physicians may involve a joint model between the public and private sectors, which is likely more feasible in China at the current stage.

Dr. Song Donglei, you mentioned earlier that the Donglei Brain Surgery Physician Group follows the model of Dr. Zhang Qiang’s Physician Group. Could you please provide more details about your team composition, including the distribution of physicians’ years of experience? Additionally, how many partner platforms are you currently collaborating with, and what criteria do you use when selecting these partner platforms?
Song Donglei:Each physician group operates under a distinct model. Our neurosurgery physician group is a relatively large organization primarily focused on surgical services. Currently, our operational structure consists of an equal split between clinical and non-clinical staff. Physicians dedicate the majority of their efforts to clinical expertise, while non-medical personnel provide essential support to enhance patient care, including customer service, financial management, operations, and brand promotion. At present, our team maintains roughly a 50/50 ratio between clinical and non-clinical staff; however, this proportion may be adjusted in the future, potentially with a greater emphasis on recruiting physicians.

Our physician group comprises doctors at all levels of seniority, with a significant number holding the titles of Chief Physician and Associate Chief Physician. Moving forward, I will intensify our recruitment efforts. We have currently signed agreements with three institutions, and negotiations are underway with several public hospitals and private healthcare providers. I believe that as we expand our platform network, we will attract more physicians; in turn, a larger physician base will enable us to partner with even more platforms, thereby facilitating the gradual expansion of our group. My objective remains clear: to encourage an increasing number of physicians to pursue independent practice.

I am an attending physician and wish to join a physician group. What are the specific steps I should take? What qualifications are required? Beyond enhancing influence, what additional benefits can a Physician Group Alliance offer to each member physician group?
Song Donglei:The value that any alliance brings to its members is multifaceted, encompassing the integration and allocation of resources—capabilities that individual physicians or physician groups may struggle to achieve on their own. The consolidated strength of an alliance yields significant amplification effects. In terms of policy support, public engagement, media attention, and policy direction, the resources we unite are arguably the most critical asset. We can mobilize the policy, capital, technological, and academic resources necessary for the development of any physician group through our alliance model. Since these achievements are difficult for individuals to attain alone, I fully support the growth and development of physician groups.

The second challenge is that it is somewhat difficult for physicians employed within the public healthcare system to join physician groups, as we require full-time commitment. Only by dedicating oneself entirely can one strive to serve patients with utmost effort, build a personal brand, and collectively accelerate the development of the group. If you are unwilling to leave the public system, you might consider collaborating with physicians who remain within it. Based on my personal experience, only by removing all constraints can one dance with complete freedom.

What is the collaboration model of the Physician Group Alliance? Does it involve joint procurement, sharing of patient referrals, signing contracts with external parties as a unified entity, or even integrated operations and consolidated financing?
Zhang Qiang:There are various organizational structures among the internal members of physician groups. Currently, there are roughly three predominant models in the market. The first is the joint-stock model, where the early key experts serve as shareholders of the company. As physician groups evolve, partnership-based models, similar to law firms, have also emerged. In the future, physician groups will likely feature a hybrid structure: some physicians will hold both full-time positions and shareholder status, while others will participate solely through revenue-sharing arrangements, such as those engaging in multi-site practice. Additionally, physician groups will employ certain doctors for talent development purposes. All these forms will coexist.

What roles can physician groups play in enhancing the technical capabilities of primary healthcare institutions?
Lin Feng:We have recently proposed an expert-guided approach, which has been endorsed by the Shenzhen Municipal Government. As a result, our group has secured a project in Shenzhen focused on expert-guided primary care training and infrastructure development in collaboration with hospitals. In the future, we can contribute to strengthening primary healthcare services at the grassroots level across China.

Apart from hospitals, with which third-party platforms do physician groups also collaborate?
Zhang Qiang:In addition to hospitals and medical device companies, we are also collaborating with virtual reality technology firms, having recently signed a partnership agreement. Furthermore, we are working with Tencent to develop mobile internet products.

In the future, an important mission for our alliance of physician groups will be to evaluate mobile internet products from the perspective of specialist physicians. I believe this will drive internet-based products to better align with clinical needs and market applications.

Zhang Qiang:Due to time constraints, today’s session has come to an end. If you have any further questions, please continue to follow our quarterly meetings. Our Physician Group holds a quarterly meeting every season, and we look forward to continuing our collaboration with VCBeat for these events. The next quarterly meeting will be held in Shenzhen, and we will announce the details in advance. Thank you all!


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