Chindex International, Inc. (CHDX)
News and Research on Chindex International, Inc. (CHDX)
Business Description
Chindex International, Inc. provides healthcare services in China, including Hong Kong. The company provides healthcare services and sells medical equipment, instrumentation and products.
Segments
The company operates in two business segments:
Healthcare Services division: This division operates the company’s United Family Healthcare network of private hospitals and clinics. The company is a foreign-invested, multi-facility hospital network in China.
Medical Products division: This division markets, distributes and sells select medical capital equipment, instrumentation and other medical products for use in hospitals in China and Hong Kong on the basis of both exclusive and non-exclusive agreements with the manufacturers of these products.
HEALTHCARE SERVICES DIVISION
United Family Healthcare Network (UFH)
The company, in 1997, opened the first private, international standard hospital in Beijing. The development of the United Family Healthcare network continued with the expansion of clinical services and opening of a freestanding outpatient clinic in Beijing. In 2004, the company opened its second United Family hospital in Shanghai.
The company’s patient base includes the expatriate communities and China’s upper-middle class. Emphasizing the need for well-care (routine visits in the absence of illness) and patient-centered care (involving the patient in healthcare decisions), United Family Healthcare facilities offer a range of family healthcare services, including 24/7 Emergency Rooms, ICUs and NICUs, ORs, clinical laboratory, radiology and blood banking services for men, women and children. Its hospitals are staffed by a mix of Western and Chinese physicians. Its facilities are also committed to community outreach programs and offer healthcare education classes, including CPR, Lamaze and Stress Management.
Both United Family Hospitals in Beijing and Shanghai are 50-bed models with affiliated satellite clinics. The company maintains direct billing relationships with insurers providing coverage for the expatriate communities in Beijing and Shanghai. In addition, through a cooperative project launched in September 2006 with the insurance arm of the Chinese company FESCO, the company is the Preferred Provider Organization (PPO) for one of the comprehensive health insurance products to be offered to the local Chinese community.
UFH – Beijing Market — Beijing United Family Hospital and Clinics (BJU)
BJU is housed in a modern facility in the eastern section of Beijing, a center of the expatriate community. It is a contractual joint venture between Chindex and the Chinese Academy of Medical Sciences, with Chindex entitled to 90% of the net profits of the enterprise. There are two satellite clinics affiliated with BJU. The first, opened in 2002, is Beijing United Family Clinic – Shunyi. The Shunyi Clinic is located in the densely expatriate-populated high rent residential suburb of Shunyi County. It is also located near the International School of Beijing. The second, opened in June of 2005, is Beijing United Jianguomen Clinic. It is in downtown Beijing located in a luxury hotel complex in the heart of the diplomatic district.
UFH – Shanghai Market — Shanghai United Family Hospital and Clinics (SHU)
The company’s second United Family Hospital is located in the Changning District of Shanghai, also a center of the expatriate community. This facility is also a contractual joint venture. The company’s local partner is Changning District Central Hospital, with Chindex being entitled to 70% of the net profits of the enterprise. There is one satellite clinic affiliated with SHU, the Shanghai Racquet Club Clinic, which is also geographically located in a luxury expatriate residential district.
MEDICAL PRODUCTS DIVISION
The company markets, distributes, and sells select medical equipment, instrumentation and products for use in hospitals in China. This business is conducted through the Medical Products division. The Medical Products division was formerly known as the Medical Capital Equipment division.
The Medical Products division offers manufacturers of medical capital equipment, instrumentation and products access to the greater Chinese marketplace through a range of marketing, sales, distribution and technical services for their products. The division also arranges government backed financing packages for its Chinese buyers.
The company provides comprehensive market coverage on behalf of clients and suppliers on a nationwide basis. The Medical Products division is organized both by clinical or therapeutic product specialty and by region. It markets products directly to hospitals through all relevant participants in the purchasing process, including hospital administrators and the doctors who are the ultimate users of the products.
The Medical Products division includes a technical service department to support the activities of the division. The company is responsible for the technical support of all the medical equipment that it sells. This technical service department maintains spare parts inventories and employs factory-trained service engineers on a nationwide basis.
The Medical Products division arranges government-backed financing to help hospitals in China finance their purchases of medical equipment. The company owns and operates local subsidiaries in China, Germany and other international locations that provide global distribution services to all of its operating departments and divisions. In China, the company’s operations include distribution/logistics centers in Shanghai, Beijing and Tianjin and additional local warehouses in eastern China that support local Medical Product division sales. In Germany, the company’s operations coordinate the execution of German KfW financing projects. In Hong Kong, the company’s operations service the local markets for certain products.
The products sold by the Medical Products division include diagnostic color ultrasound imaging devices, robotic surgical systems and instrumentation, chemistry analyzers, sterilization systems, bone densitometers, mammography and breast biopsy devices and lasers for cosmetic surgery.
Suppliers
The company’s major suppliers include Siemens Medical Solutions and Guidant.
Competition
The company competes with General Electric, Philips, and Toshiba.
History
Chindex International, Inc. was founded in 1981.
