HCA's Frist funds China-based hospital venture

Anne Zieger — Wed, 30 Jul 2008 09:25:43 -0400

HCA co-founder Dr. Thomas Frist Jr. is making what is likely to be a trend-setting move. Dr. Frist is investing in a new venture, China Healthcare Corp., which is focused on bringing U.S. hospital management practices to running Chinese facilities. China Healthcare will kick off its operations by building and operating a 500- to 600-bed hospital in Shanghai. The startup will be run by Dr. Frist's son-in-law, Chuck Elcan, a former executive with a real estate investment trust focused on medical office buildings.

The Shanghai-based general acute care hospital, which still needs approval from the Chinese ministries of health and commerce, will serve private-pay patients and patients whose healthcare costs are paid for by the Chinese government. To fund the hospital's growth, China Healthcare is banking on the Chinese government's planned expansion of state-run insurance programs for residents, as well as business from private-pay patients.

To be certain, Elcan will have his hands full in meeting China Healthcare's goal--which is to bring Western hospital management style and culture to the Asian country. And he'll face regulatory and cultural barriers in getting the venture up to speed. On the other hand, he may get paid at levels more in line with what the hospital actually charges. It just might work.

To learn more about the new venture:
- read this article in The Tennessean

Related Articles:
Study: Medical tourism market smaller than predicted
Indian hospital uses YouTube to sell medical tourists

U.S. carriers expand health insurance businesses into China

Abby Christopher — Wed, 25 Jun 2008 12:00:43 -0400

Aetna has opened an office in Shanghai, where it hopes to expand its health insurance business. Other insurers such as CIGNA, UnitedHealth Group and WellPoint also have established roots in China, all with an aim to sell supplemental health insurance. "It's a real hotbed place for large U.S. multinational or multinational corporations [from other nations] to open or expand their offices," said Martha Temple, president of Aetna Global Benefits. As the U.S. economy--and as a result, the health insurance market--becomes increasingly unstable, U.S. carriers are looking for new ways to expand into other markets such as China.

For more information:
- read the full Hartford Courant story