With an investment of more than 2 billion yuan and more than 4,000 beds, why did Xinyang, a private medical institution, turn to public?

Reporter | Jin Miao

Edit|Xu Yue

According to local media reports in Xinyang, Henan, Henan Xinyang Shengde Hospital has recently begun to change the name of the hospital.
After the name change is completed, Shengde Hospital will officially become Xinyang People's Hospital, and the hospital will be converted from a private medical institution to a public medical institution
.

According to the official website of the hospital, the former Shengde Hospital is a private tertiary hospital, jointly established by Shengde International Hospital Group and Xinyang Vocational and Technical College
.

Jiemian News previously reported that a number of private medical institutions have been shut down and transferred due to the epidemic facing private medical institutions directly facing outpatient visits and declining operations
.

According to the credit disclosure system, in December 2019, Shengde International Hospital Group Co.
, Ltd.
pledged the equity of Shengde Hospital to Guangzhou Rural Commercial Bank Co.
, Ltd.
South China New Town Sub-branch, and the amount of equity pledged was 92 million
.

According to the survey conducted by the Kaifeng Municipal Government, Kaifeng Municipal Health Commission, Kaifeng Municipal Finance Bureau, Kaifeng Municipal State-owned Capital Investment and Operation Company and other relevant departments at the end of March to investigate Shengde Hospital, Wei Xiangzhi, deputy general manager of Xinyang Huaxin Investment Group, said at that time, Huaxin will acquire 60% of the shares of Shengde International Hospital Group and Henan Shengde Judicial Appraisal Center, and will publicize Henan Shengde Hospital under Shengde International Hospital Group and trust it to the government to form a new public general hospital and City Maternal and Child Health Hospital
.

"It can make full use of its high-quality medical resources, save time and cost, and quickly apply for a comprehensive tertiary hospital to make up for the shortcomings of Xinyang municipal public medical institutions
.

Although the new crown epidemic has made it difficult for domestic private medical institutions to survive, they are facing the problem of closing or changing hands
.

As far as the government or public medical institutions are concerned, in addition to the long construction period, the investment in new hospitals is also in the order of billions.
After Suqian sold out public hospitals, the local government fully funded the construction of the Suqian First People’s Hospital.
The total investment of the project is 2.
1 billion yuan
.

Recently, the government or public hospitals have more than one case of acquiring private hospitals
.

In March of this year, on the Sichuan government procurement website, West China Guang’an Hospital of Sichuan University (Guang’an People’s Hospital) in Guang’an City, Sichuan Province issued the “Public Bidding Procurement Announcement for the Purchase of the Third-Party Intermediary Agency Service Procurement Project of Guang’an Huatai Kuige Hospital Co.
, Ltd.
”
.