Page 32 Bain Capital Helthcare
P. 32
China’s healthcare system is dominated by publicly owned
hospitals, many of which have long histories and academic
bents. After years observing that market, Bain Capital saw
an opportunity to invest in a company that delivered care in
a “more targeted, efficient manner,” according to Jonathan
Zhu, a Partner at Bain Capital Private Equity.
The result, built up carefully over time, has been APMG,
a leading private hospital chain made possible by Bain
Capital’s deep research, local expertise, connections, and
experience in the hospitals sector.
In addition to studying China’s healthcare payments system
and hospital ecosystem, Bain Capital brought a long history
of growing private hospital businesses in other markets, such
as HCA in the U.S. and GNDI in Brazil.
“We did a lot of work to map out the landscape and were
then able to draw on our experience in other markets to help
us understand how the Chinese market was likely to evolve,”
says Zhu.
That global track record, combined with on-the-ground
credibility in China, helped APMG’s management team pursue
several partnerships with public hospitals to expand some of
its most successful service lines, like neurology and oncology.
Bain Capital’s strong relationship network also led to a string
of acquisitions.
In 2017, APMG had the opportunity to acquire two hospitals
from CHC Healthcare, a hospitals group founded by the Frist
family, which had also founded HCA, a seminal Bain Capital
hospital investment. The Frists chose to partner again with
Bain Capital.
APMG is now working on its ninth hospital, a greenfield asset
currently under development. The focus on underserved
specialties is also paying off. For example, APMG has the
number-one hospital in China for Gamma Knife surgery,
a complicated brain tumor treatment. To date, it has
performed more than 30,000 procedures. Using a baseball
analogy, Zhu estimates that APMG’s market penetration is
probably in the “third to fourth inning.”
Patient Capital
in China
Bain Capital combined many
strengths to transform and grow
a private hospital chain in the
world’s largest healthcare market
APMG: Quick Facts
OVERVIEW
Leading private hospital
group in China
HQ
Beijing, China
INVESTMENT
2016
INVESTORS
Bain Capital Private Equity
32
Bain Capital
Healthcare
hospitals, many of which have long histories and academic
bents. After years observing that market, Bain Capital saw
an opportunity to invest in a company that delivered care in
a “more targeted, efficient manner,” according to Jonathan
Zhu, a Partner at Bain Capital Private Equity.
The result, built up carefully over time, has been APMG,
a leading private hospital chain made possible by Bain
Capital’s deep research, local expertise, connections, and
experience in the hospitals sector.
In addition to studying China’s healthcare payments system
and hospital ecosystem, Bain Capital brought a long history
of growing private hospital businesses in other markets, such
as HCA in the U.S. and GNDI in Brazil.
“We did a lot of work to map out the landscape and were
then able to draw on our experience in other markets to help
us understand how the Chinese market was likely to evolve,”
says Zhu.
That global track record, combined with on-the-ground
credibility in China, helped APMG’s management team pursue
several partnerships with public hospitals to expand some of
its most successful service lines, like neurology and oncology.
Bain Capital’s strong relationship network also led to a string
of acquisitions.
In 2017, APMG had the opportunity to acquire two hospitals
from CHC Healthcare, a hospitals group founded by the Frist
family, which had also founded HCA, a seminal Bain Capital
hospital investment. The Frists chose to partner again with
Bain Capital.
APMG is now working on its ninth hospital, a greenfield asset
currently under development. The focus on underserved
specialties is also paying off. For example, APMG has the
number-one hospital in China for Gamma Knife surgery,
a complicated brain tumor treatment. To date, it has
performed more than 30,000 procedures. Using a baseball
analogy, Zhu estimates that APMG’s market penetration is
probably in the “third to fourth inning.”
Patient Capital
in China
Bain Capital combined many
strengths to transform and grow
a private hospital chain in the
world’s largest healthcare market
APMG: Quick Facts
OVERVIEW
Leading private hospital
group in China
HQ
Beijing, China
INVESTMENT
2016
INVESTORS
Bain Capital Private Equity
32
Bain Capital
Healthcare
