VB Group Chat No.5 | Lin Hai of Care-Renal: Core Business Logic Behind a Renal Doctor Group Securing Hundreds of Millions in Funding

Guests in This Issue:Lin Hai, Co-founder of Kairui

Time:2015.08.05 20:00－21:00

Host:Huang Jia

Guest Introduction:
Lin Hai, female, graduated from the Department of Medicine at Peking University Health Science Center. She has three years of experience as an internal medicine physician, six years of experience with foreign pharmaceutical companies, and nine years of entrepreneurial experience. In 2015, she embarked on her second entrepreneurial venture, co-founding the CareRay Nephrologist Group with five experts in nephrology and hemodialysis. VCBeat featured a report on CareRay in July.

I. Highlights

1. How can corporatized physician groups ensure commercial success?
Lin Hai stated that, first and foremost, the field of nephrology dialysis is highly suitable for entrepreneurship by technically skilled professionals, as dialysis centers and small-scale nephrology hospitals represent mature business models validated both domestically and internationally. The experts at CareRay have mastered various advanced operational models from Japan, the United States, Taiwan, Europe, and other regions.

Meanwhile, the Group has multiple business managers designing and implementing comprehensive commercial operations. Significant practical progress has already been made in Beijing and other regions.

2. In what aspects is Kairui's greatest competitiveness reflected?
First, Kairui boasts significant talent advantages; its joint, monopolistic, and exclusive physician partner alliance constitutes the company’s core competitiveness.
Secondly, CareRay is not merely establishing simple dialysis centers; instead, it aims to build comprehensive and specialized nephrology hospitals. Each dialysis center is equipped with outpatient clinics for both traditional Chinese medicine and Western medicine in nephrology, as well as inpatient wards.
Thirdly, CareRay’s dialysis centers are physician-led, distinguishing them from competitors whose daily operations are typically nurse-managed; this model can effectively slow the progression of end-stage renal disease (ESRD) and improve the quality of care for dialysis patients.
Fourthly, the Group accepts a wide range of patient types, including elderly, critically ill, and complex cases. Among private dialysis centers, only Kairui is capable of doing so.
Fifth, the Group’s technology and management will remain synchronized with those of leading public hospitals both domestically and internationally.

3. How to create a distinct identity in the homogenized dialysis market and differentiate from competitors?
Kairui has launched a variety of innovative patient services. In addition to receiving the most professional medical diagnosis and treatment, patients are treated with full respect and enjoy meticulous, human-centered care, along with comprehensive improvements in quality of life, including social activities, entertainment, and group outings. Kairui’s medical fees are on par with those of public hospitals, avoiding a low-price strategy. All hospitals acquired by Kairui are covered by medical insurance.

Furthermore, the Group will establish a training base for nephrology treatment, dialysis technology, and related surgical procedures, representing the highest professional standards in China. It will also invest in the nephrology dialysis industry chain. This enables experts to access the latest domestic and international advances in nephrology and dialysis technology within the academic community at the earliest opportunity, which the Group will then introduce and implement across Kairui’s hospitals. Meanwhile, Kairui will make early-stage and key strategic investments in relevant pharmaceutical and medical device companies.

4. How does Kairui collaborate and leverage external resources?
Integrate multiple independent dialysis centers across China to form a large-scale consortium of specialized nephrology and dialysis hospitals, with unified operations and management by CareRay and a joint public listing; provide talent and technical expertise to partner hospitals that are not in direct competition within the industry, charging service fees or acquiring equity stakes through technology contributions, thereby enhancing CareRay’s capital value and national brand market share; forge strategic alliances with leading institutions, such as major groups in the healthcare and nephrology dialysis sectors, to consolidate its industry-leading position.

II. Engaging Q&A

Xie Xin Medical CEO Yan Zhiwen asks: What is the Group’s model for collaborating with renowned physicians?
Lin: Only our full-time core experts are eligible to receive equity stakes in the company or hospital. Physicians below the rank of associate chief physician are exclusively contracted, specially appointed, high-salaried full-time employees. Therefore, few experts hold equity, particularly company equity. However, all experts engage in exclusive partnerships.

Mr. Xu, Project Manager at Sinopharm, asked: How is Kairui planning its offline development strategy?
Lin: Our offline strategy is as follows: Within two years, Beijing Holdings will acquire and operate two tertiary hospitals, while acquiring and operating ten secondary hospitals in other regions. Meanwhile, we aim to partner with four large specialized nephrology hospitals across China to establish a consortium of nephrology dialysis centers.

Zhou Yachi, Founder of Shanghai Dianlian, Asked: What Resources Does Kairui Most Hope to Connect With?
Lin: From the outset, our operations team has placed special emphasis on leveraging capital support to accelerate the development of traditional hospitals and seize the first-mover advantage in China’s healthcare industry. Therefore, we seek professional investment institutions to provide guidance on mergers and acquisitions and initial public offerings, as well as comprehensive financial support throughout the process.

Further Reading:

China’s First Nephrology Physician Group Makes Debut: Secures Hundred-Million-Yuan Financing