IHH Healthcare in collaboration with Chinese Taikang Insurance Group and their project joint venture partner Shanghai Hongxin Medical Investment broke ground for Gleneagles Shanghai Hospital in Shanghai, China.
Gleneagles Shanghai is a 450-bed multi-specialty general hospital being constructed on a 35,754m2 site in Shanghai New Hongqiao International Medical Centre (NHQIMC).
The hospital is estimated to require a capital expenditure of CNY1.36bn ($200m) and is slated to be completed by 2020.
The latest addition to NHQIMC is expected to support the Central China government’s goal to develop Shanghai into a medical destination.
IHH Healthcare CEO and managing director Dr Tan See Leng said: “Greater China is our key growth market and we are committed for the long haul.
“We are confident of our prospects, given the rising demand for quality healthcare here and recent reforms by the government to open access for private investors to develop private hospitals and broaden health insurance coverage.”
With this hospital, Greater China has become IHH’s fifth market after Malaysia, Singapore, Turkey and India.
IHH opened a 500-bed Gleneagles Hong Kong multispecialty hospital in March this year, with plans to open the 350-bed Gleneagles Chengdu general hospital next year and the 70-bed Gleneagles Nanjing obstetrics and gynaecology hospital in 2019.
To speed up its growth in the Mainland, IHH signed a strategic partnership with Taikang to benefit from their complementary strengths in healthcare and insurance.
With the completion of the deal in April this year, IHH and Taikang will jointly fund future projects in proportion to their shareholdings in an IHH subsidiary, in which IHH holds 70.1% stake, and Taikang 29.9%. This subsidiary manages primary care portfolio as well as new hospital projects in the Mainland.
For the development of Gleneagles Shanghai, IHH and Taikang have entered into a 70:30 joint venture with Shanghai Hongxin, a majority-owned subsidiary of Shanghai New Hongqiao International Medical Center Construction Development Co Ltd.