|[September 25, 2018]
KKR Forms Hospital Management Company SinoCare Group to Provide Quality Health Care Services to Patients in China
Global investment firm KKR today announced the creation of SinoCare
Group ("SinoCare" or the "Company"), a hospital investment and
management platform company in China. SinoCare aims to provide
high-quality health care services to patients in China through the
acquisition, build-out and consolidation of hospitals.
SinoCare will work alongside KKR to bring top medical resources and
management experience that aim to improve service capabilities and
operational efficiencies to health care service providers within the
SinoCare platform, as well as to address the high demand for quality
medical services in China. The Company will build its platform through
organic growth and acquisitions. Additionally, KKR's support will enable
partner hospitals and care centers to be on the leading edge of health
care technology and global best practices.
In conjunction with the launch of SinoCare, KKR also announced that the
Company has acquired a majority stake in leading Chinese hospital
management company, HeTian Hospital Management Co. ("HeTian"). The
investment will support HeTian's continued development of new medical
practice areas, its expansion plans and scope to service more patients.
The partnership between HeTian and SinoCare aims to serve as a model for
how Chinese health care providers can be substantially enhanced through
the support of a leading international investor and increased access to
global best practices and medical resources.
Established by Founder and Chairman Dr. Li Fangjun, HeTian is a leading
comprehensive health care provider in China. HeTian operates two general
hospitals in Anhui province - Lu'An Shili Hospital and WuHe Hospital -
and Lu'An HeTian Nephrosis Specialty Hospital, an operator of three
dialysis centers. The group manages a total of 1,300 beds, in addition
to overseeing the construction of a new hospital with 500 beds planned
to be completed by 2020.
SinoCare will support HeTian's expansion and growth through
acquisitions, with a focus in third- and fourth-tier cities where
medical resources are scarce and quality health care services ar
lacking. This is consistent with the Chinese government's encouragement
of more medical resources being extended to lower-tier cities, where
there is urgent need but currently limited supply and high costs for
medical treatments. There are fewer than three hospital beds per 1,000
people in China's fourth-tier and smaller cities, according to the
National Health and Family Planning Commission.
Paul Yang, Member and CEO of KKR Greater China, said, "This is a pivotal
time for health care in China given the growing demand for quality
medical services and treatments nationwide. We've seen first-hand some
of the issues facing Chinese patients and are dedicated to supporting
their needs through the launch of SinoCare and through the platform's
initial investment in HeTian. We are impressed with HeTian's respected
and experienced team of doctors led by Dr. Li, and believe that the
company has a unique opportunity to build on its success to deliver
excellent care to more Chinese patients."
Dr. Li Fangjun, Founder and Chairman of HeTian, added, "As China faces a
shortage of medical professionals and clinics, the role of private
hospitals is becoming increasingly important. KKR has a long-standing
reputation for bringing global best practices to its partners in the
health care industry internationally, in addition to supporting Chinese
entrepreneurs. We are excited to partner with SinoCare and KKR to grow
our hospital group to meet the needs of patients in the Yangtze River
Delta and beyond. This investment marks the beginning of an exciting and
vital chapter in HeTian's bright future."
KKR's investment in SinoCare is being funded from KKR Asian Fund III.
Further terms of the transaction were not disclosed.
About SinoCare Group
SinoCare Group ("SinoCare") is a hospital investment and management
platform company in China created and managed by leading global
investment firm, KKR. The company aims to provide high quality and
accessible health care services to patients in China through the
acquisition, build-out and consolidation of hospitals and introduction
of global best practices.
About HeTian Hospital Management
HeTian Hospital Management Co. ("HeTian") is a professional hospital
management company specialized in operating and investing in integrated
health care service providers. HeTian currently operates seven
award-winning hospitals and health care centers focused on underserved
Chinese cities. The company's vision is to improve access to quality
health care services by building a network of primary medical care
providers supported by modern health care management best practices.
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR's investments
may include the activities of its sponsored funds. For additional
information about KKR & Co. Inc. (NYSE:KKR), please visit KKR's website
at www.kkr.com and
on Twitter (News - Alert) @KKR_Co.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180925006279/en/
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