Taiyuan, Shanxi, December 7, 2017-- China Life Private Equity Investment Company announced its equity investment in a SOE-owned hospital in Taiyuan, Shanxi, a province in northern China.
Taiyuan Iron & Steel (Group) Co., Ltd. (“TISCO”), founded in 1934, is an iron and steel giant and a leading enterprise in the global stainless steel industry. TISCO’s General Hospital, founded in 1952, is a top-grade 3A hospital with around 1,800 beds.
After the investment, China Life will be the co-owner of the hospital together with TISCO.
According to the agreement, China Life will leverage its resources in insurance business and customer base to help improve the efficiency and quality of the medical service of the hospital. More direct reimbursement services will be rendered at the hospital after the investment for insurance policy holders.
Wan Yiqing, CEO of China Life Private Equity Investment Company said, “The investment is in consistency with China Life’s business strategy in integrating insurance business with medical services. We are bringing in not only capital. More importantly, China Life’s comprehensive resources and synergies from our partners and portfolio companies will also play important roles in the hospital’s future development and reforms.”
China is undergoing great reforms in the healthcare industry, putting more financial pressures on hospitals with traditional operation models and strategy. Insurance companies are playing more and more active roles in hospital investment with synergies expected in multiple areas.
The investment in TISCO General Hospital was conducted by China Life Private Equity Investment Company, the alternative investment arm of China Life. It manages China Life Healthcare Fund, with total commitment of RMB 12 billion. Its portfolio companies include Wuxi Apptech, Innovent Biologics, Mindray Medical International and Untied Imaging Healthcare, etc.