From the bankruptcy auction case of Shijiazhuang Modern Chinese Medicine Blood and Kidney Disease Hospital to similar encounters in many private hospitals across the country, these events reflect not only the management problems of a single hospital, but also the profound changes experienced by the entire private medical industry under multiple factors such as market competition, policy adjustment, and financial pressure.
Source: Private Dean's Club
Editor: Lingxing
Cover source: pixabay
Recently, in the online auction market of Shijiazhuang City, ushered in a special real estate auction, the auction of the property, is a medical property - Shijiazhuang Modern Chinese Medicine Blood and Kidney Hospital Office Building was auctioned, the starting price of 13.9697 million yuan, in the end only one person signed up for the auction, with the starting price to win the hospital office building.
Shijiazhuang Modern Chinese Medicine Blood and Kidney Disease Hospital is a private hospital, established on February 4, 2004, but its predecessor can be traced back to the eighties of the last century, formerly known as Shijiazhuang Sumin Clinic, founded in 1986, after more than 30 years of development, by Shijiazhuang Sumin Outpatient Clinic gradually developed into a national second-class hospital, Shijiazhuang Modern Chinese Medicine Blood and Kidney Disease Hospital was once known as the "National Top 100 Specialized Hospitals" medical institutions. But in the end, it went bankrupt and went out of business.
According to the bankruptcy ruling, Shijiazhuang Modern Chinese Medicine Blood and Kidney Disease Hospital has 40 creditors, with a total debt of more than 490 million yuan, while the appraised value of existing assets is only more than 13.96 million yuan, and the asset-liability ratio has reached an astonishing 3510.03%. The asset is the office building that was auctioned for this time.
The office building, with 12 floors above ground and a parcel area of 992.3 square meters, is located in the east of North Tangu Street, Heping East Road, with a land area of 2140.22 square meters and a construction scale of about 900 square meters.
This office building has been under construction for many times in the planning and construction, and the real estate registration has not yet been processed. The first construction was in 2012, when the construction project planning permit, the total construction area is 3,785 square meters (including 555 square meters underground), with 7 floors plus 1 basement floor. Later, in 2014, it applied for additional floors, and the planning permit for the construction project showed a total construction area of 1,639.3 square meters. Number of layers: 8-10 layers.
Now the building has changed a lot, all kinds of doors and windows of the building have been removed, the stairs are badly damaged, the wall tiles are falling off, and there is water ingress on the first basement floor. Everything in the building was destroyed, and glass shattered to the ground. Demolition or renovation may seem like a lot of work.
Since the building in this auction is a medical land, not a commercial land, it cannot change the nature of the land for commercial office purposes. Moreover, the land belongs to the allocated land, not the state-owned transfer land, and the subsequent land transfer fee may need to be paid, and the actual transaction price is higher.
Judging from the auction results, the final winner of this office building is also a medical care service company, I don't know if it is going to transform this building into a medical base for the elderly in the future.
Recently, a number of private hospitals were auctioned
The above-mentioned cases of private hospitals being auctioned off after bankruptcy are not unique.
In addition, a number of hospitals were auctioned off in May.
For example, the real estate and indoor movable items and ancillary facilities owned by Funing New District Hospital located at No. 361 Hong Kong Road, Funing County, will be auctioned on the Ali auction platform on May 14, with a starting price of more than 74.85 million yuan.
Also on the Ali auction platform, the overall building, all medical equipment, equipment and surrounding land of Huilai Dongming Hospital were auctioned on May 8, with a starting price of 35 million yuan.
Longchuan Dingsheng Hospital will start bidding on May 18, with a starting price of 18 million yuan; Cangyuan Wa Autonomous County Cangyuan Friendship Hospital (real estate + movable property) will be auctioned on May 21, with a starting price of 25.8 million yuan.
There are also land and above-ground buildings, appurtenances, equipment and vehicles under the name of Mengcheng County Zhonghe Traditional Chinese Medicine Hospital, which will be auctioned on May 29, with a starting price of more than 29.12 million yuan. The hospital was established in 2016 with a total investment of 120 million yuan and 120 beds.
Among them, Huilai Dongming Hospital has gone through multiple rounds of auctions, and the starting price has shrunk significantly from 47.75 million yuan, 42.79 million yuan, 38 million yuan to 35 million yuan.
The frequent auction cases may also reveal a cruel reality: the transaction of medical institutions has shifted from a seller's market to a buyer's market. Hospital assets listed at low prices are easy to find, and buyers who are willing to pay are hard to find. And more hospital investors are becoming more rational and are taking a wait-and-see attitude towards buying hospitals.
For private hospitals that are currently operating, it is also important to "be prepared for danger in times of peace" and improve the operation of their own hospitals through some bankruptcy cases. Rather than expanding the layout or making quick profits, sometimes it is more necessary to "maintain stability". Perhaps the best way to avoid capital chain problems is to estimate risks, set medium- and long-term goals, and then gradually improve and innovate in practice. Carefully study the market environment of medical services, scientifically and accurately position the development direction, and then occupy the dominant position in market competition.
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Source of this article: Private Dean's Club
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