Liu Chuanzhi together Li Changren huge sums of money to build the oral empire

"Indeed, after letting Le total worry about money is my responsibility." At the signing ceremony, Lenovo Holdings president Zhu Lainan made a firm statement on the spot, "the first phase is 8 to 10 million, to support the worship of oral Medical Group's national development. If Mr. Li also needs money, so long as our company develops well, then we will certainly continue to support it. There is no doubt about this. "

Can see from these words, lenovo holdings is simply "sincere".

Baibo Stomatology Group is a national dental chain group that Leichang spent 20 years pulling hand in hand while the Group is the treatment-based Bayer Stomatology Center and Clinic which now covers 19 provincial capitals and First-tier cities. As Chairman Li Changren, planning the next three years the goal is to establish 200 chain dental facilities, covering at least 40 cities. Lai Chang-jen also believes that if the association's support, no one in the field of stomatology can keep up with his pace.

In two decades of operation, Li Changren also experienced a failure in the policy environment. Even though the current situation can not be described as a smooth road, he still believes this time is an unprecedented opportunity for private medical treatment and decided to speed up its expansion.

Owing to the good market prospect, the controllable risks, the low technical threshold, and the low degree of monopoly caused by the negligence of public hospitals on stomatology, stomatology has become one of the most active areas for private capital. In addition to Baibo, in the field of oral health is also active Caramel, St. shell, Riel and other private dental institutions, and have shown a trend of development of the chain. From an investor's point of view, Zhu Linao believes that a comprehensive hospital needs a process toward marketization, but professional chains are more market-oriented.

There are also some differences in the market regarding the development prospects of dental care. In an interview with 21st Century Business Herald, investors once said that most dental clinics are small in size and their market demand is not as rigid as their counterparts in other fields. Their space for development and the promotion of the medical industry are limited.

Li Changren provides another development idea. Most of the social capital to do medical treatment hope to reduce costs in the group procurement, more practice to make up for talent, but Lai Changren plans it all to solve their own. He wants to develop Bembo as an all-round medical conglomerate that includes dental services, dental equipment manufacturing, talent training, and technology management output. Li Changren mouth of the "century-old" looks more like an oral empire.

This is rare in the social capital of medical treatment ideas, for Lai Changren, although two decades of development experience, but the realization of an oral empire is still in its infancy. Li Changren why such a determination? How does he treat the development of dental care? Baibo and Lenovo together will take what kind of development path?

In Baibo's Beijing headquarters, Li Changren told 21st Century Business Herald his development philosophy and ideas that made Liu and Lenovo all agree.

New, mergers and acquisitions, restructuring: one can not be less

With the cooperation of Lenovo, you can make Bibo access to funding, management and influence and many other support.

Li Changren:

First let's talk about our industry. Unlike other industries, health industry profits are not particularly high, but it is a long-term sustainable growth of the industry. However, the initial cost of investment, long time period. And even after the shop, at least six months is a loss. We call this period of loss time "market cultivation period." Why is the market cultivation period? Because with the supermarket, the hotel is different, the medical profession must have the brand effect, at the same time the value of transmission must also be recognized. We are satisfied with the service, recognized the brand, word of mouth, repeat customers will be more and more social benefits getting better and better economic benefits will be better.

China's oral market is very large, if only to make money, I will not open the chain, open one or two stores every year, earn money, do not have to work so hard. However, I have always insisted that the idea is to do a hundred years of age, so I hope to find a partner with our philosophy is the same. Lenovo Holdings is our third partner, the first two are three to five years of financial investment. Even in the process of cooperation with Lenovo Holdings, there are a lot of fund companies have been in contact with us, and some even higher than the Legend Holdings bid 50%, of which there is a company that is ready to cast us.

So why choose Legend Holdings? The first time I met with the head of Lenovo's project, I talked about the concept of "doing a hundred-year-old". Later see Liu Chuanzhi chairman, originally scheduled time is half an hour, but the last chat for most of the day, it is cast. I briefed him on the status of China's oral health care market, including some gaps between China and foreign countries, the future direction of development, and our development concept. Liu recognized the concept of our chairman very much, and he has had dental experience and has a very deep understanding of dental care.

Of course, in addition to the concept of highly consistent, Lenovo after 30 years of development has become a very mature business, with unique advantages. The first is the security of funds. After the establishment of the country by the association continued to provide financial protection; Second, because the Legend holding team in the international and domestic years of experience in management, philosophy and other aspects can also give us some help to enhance; Third, Lenovo Holdings In China's relations and business to do a lot of cities, such a brand will give us great help.

For instance, the licenses for oral medical institutions are subject to administrative planning and restrictions on the number of people. It is a very scarce medical resource. Then Lenovo's influence combined with our professional ability, will greatly enhance our competitive advantage. So although the price is not as good as other investment institutions, but we are pursuing a chain of agencies can go deep into all provinces and cities nationwide, from this perspective, Lenovo can help us to speed up the expansion.

Legend Holdings billion investment will be based on our needs step by step, that is, for the development, market development, new stores, buy stores. Uses are very clear, mainly for the development of the market.

We have a plan to develop two hundred chain agencies in three to five years. However, the approval process in China takes a long period of time and obtaining licenses is a complicated process. An outpatient department from the site to the opening, the fastest six months, a hospital at least 8 months or more. So we only take two legs to walk, one is to build their own new, one is the acquisition. Then there is hope that we can participate in the restructuring of state-owned hospitals. This is also our next priority goal.

National policies have been promoting the reform and acquisition of private medical institutions into state-owned hospitals. They are the best chance for specialist medical institutions and they are relatively simple to acquire. Because oral specialists do not belong to the category of ordinary people's minimum security, nor is it a public emergency agency. This piece of approval process is relatively simple. This is a better chance for us. However, the acquisition of a comprehensive hospital is more complex, involving more levels.

At present, the provincial cities have basic dental hospitals, some prefecture-level cities, some do not. Now the public hospital restructuring mergers and acquisitions have not yet introduced a special policy, the implementation of the skills but also in-depth discussion, but with the total policy support can be done. Now with adequate financial security, we will go all out and participate actively in the reform of public hospitals in provincial cities or prefecture-level cities.

The chain management policy lags behind

The same city can use the same brand name, are not clear.

Like many people in the medical and investment industries, Li Changren also believes that this is a rare opportunity for private medical development. The reasons are quite similar: the support and encouragement of national policies and the potentially huge market demand. The problems we face are nothing less than the shortage of qualified personnel, the lack of policies and the protection of some interests.

However, the policy lag of chain management is a new problem that social capital faces in recent years.

Due to years of accumulation, many social capital hospitals have been operating in the direction of the chain, not only reduce costs, but also play a brand. This is not limited to the oral cavity, including maternity, ophthalmology, physical examination and other fields are already chain brands.

Although the national policy has also been proposed to encourage chain operations in private hospitals, the lag of related policies has become an obstacle to the development of the chain. In extreme cases, the same city can use the same brand name, or even not clear.

However, in Lai Changren's view, since the general direction has been established, the rest is only a matter of time.

Li Changren:

From a market perspective, the state's policies now encourage the development of private medical institutions. It also encourages the private capital to enter state-owned hospitals for restructuring and acquisition, which gives the private medical institutions an unprecedented opportunity to develop at the national level. This is the first. Second, it is also a kind of support to encourage more practice in medical practice. And clearly stated in the policy, some state-owned hospitals have policies and treatment to give private medical treatment. This is the greatest support for us. In addition, China's medical market is really too big. Whether it is a large health or oral items, are very large market.

Before everyone did not have a concept of scaling, I believe China will pay more and more attention to this. Nowadays many white-collar workers take the initiative to clean their teeth. This is a change. At present, the overall treatment in our country is still mainly based on the principle of prevention. However, prevention is the mainstay of our country. There are no problems. Every year, we go to health care. In the process of health care, problems will be discovered in time and treated at any time. This is prevention. I myself was a stomatologist, very optimistic about this industry. Lenovo Holdings in this area is also highly consistent with us, hoping to form a real oral national brand.

But the key issue is talent. Stomatology hospital in the past will be famous doctor came to the public hospital. However, we mainly develop our own talents and will not adopt this method. This is a transitional issue and can not solve the fundamental problem. The real competition is to rely on their own ability to compete, rather than invited from the outside, it is temporary. We want everyone to be good, not to say that we have good technology in the hands of a few. We attach great importance to training. Medical care is a life-saving profession. Although the oral risk is much smaller, the medical quality still needs to be attached great importance. This requires the continuous improvement of medical technology. In addition, medical technology should continue to walk in front of the industry in order to ensure the advanced nature of the spleen. These are the talent competitions in the final analysis.

Some policy issues are complicated. Some are conceptual issues. For instance, the policies at the central level are very good. However, some protection issues still exist when the local governments implement the local policies. In terms of restructuring, however, although central policies have been proposed to encourage Private institutions are involved in public hospital restructuring, but progress on specific refinements is still slow.

In addition, the policies supporting the chain development of medical institutions are also lagging behind. In the past there was no such situation and the private chain was only developed in recent years. However, without the support of related policies, the chain business will encounter some obstacles. For example, whether to use a unified brand name, because there is no clear policy, we need to fight one by one.

However, since the national policy has been made clear, the general direction has been set, the next question is only a matter of time.

Talent difficulties in social work

Everyone is the same policy, the most important competition is talent.

Although it can be believed that the overall environmental aspects of promoting social capital will be better and better, many realistic problems can not be solved by that day, such as the most crucial issue of manpower. Social capital to run the hospital, without exception, will talk about the shortage of talent.

In particular, dental care is more dependent on physicians. According to a survey conducted by the Chinese Stomatological Association, 64% of the oral disease treatment workload is done by the dentist. However, data from publicly available sources indicate that there is one dentist out of 2,000 in developed countries and WHO recommends one dentist for every 5,000 inhabitants, compared with one dentist out of nearly 10,000 in my country.

To solve the social capital shortage of medical personnel, multi-point practice is high hopes. Many private hospitals hope to receive medical resources from public hospitals. Correspondingly, some medical institutions turn their attention to countries and regions outside the mainland to seek technical and talent support.

Li Chang-jen also adopted a similar approach to bringing in technology and talent from medical institutions both at home and abroad, but one of his most valued long-term solutions is his own training. He also sees this as his dream. However, all can become "dreams", the realization is not easy. At least so far, few rely on their own training to achieve self-sufficiency of private medical institutions.

Li Changren:

We have to do with gold, the focus is on training personnel. At present, there is already a training center in Beijing that mainly focuses on the cultivation of dental implants. In the future, we should also include orthodontics and revision. At the same time, the training should be expanded from doctors to nurses and service personnel so as to achieve an overall improvement.

At present, there are too few opportunities for domestic medical students to receive systematic training after graduation, and the space in this area is very large. Our training center is to be built as an internship employment base for university students nationwide. Some of these interns will be able to come to our place to work and solve the problem of recruitment of qualified personnel. Of course, we have to train actual combat talents. Because the mouth in addition to theory, practical ability is also very important. Our training center mainly focuses on training the actual combat capability, that is, clinical ability, including early contact with some international and domestic frontiers and new technologies, and early detection. At the same time, our training center is also open to the community and has now trained more than a thousand dental professionals from other institutions.

I hope next training center to further strengthen the building into a training institute, this is one of my dreams.

In addition, I work with some of the more cutting-edge medical groups in the world to introduce their technologies. At the same time, I also establish interaction with them in academia and introduce some foreign doctors to do our work to enrich our team. Now that we have signed an agreement (confidential) with a large medical group in the world, all their doctors 'resources will become our doctors' resources in the future. Their school resources and teaching resources will become our resources.

We want to be the largest group in the industry, we must first strengthen, strengthen the final competition or talent competition. Because everybody is not short of money, everybody is the same on the policy. The most important thing in the competition is the competition of talents. So I pay special attention to the team building and training of talents. Also pay special attention to technology, quality control. The only way to make your team healthy development. This is not something that can be done without money. It is not so easy. It must be refined before it can be expanded.

Full industrial chain plan

Medical equipment, supplies R & D and production, training, process management, technical output.

Although in the personnel training up and down a great effort, thanks to the blog is not limited to medical treatment. Li Changren said he wants to create a comprehensive medical group that includes the upstream and downstream industry chains, including equipment manufacturing and management services.

Industrial chain layout in the medical industry which is not new. Previously many pharmaceutical companies acquired hospitals, are seeking to do some articles in the industrial chain. Of course there are like Beijing University, Fosun, China Resources, in the medical industry chain planning layout. The industry chain shows a very good prospect, but the process is long and tortuous.

Many large medical groups, mainly through the way of mergers and acquisitions, and gradually improve the layout of the industrial chain. The choice of Lai Changren way, it is independent research and development and manufacturing.

Li Changren:

First of all, my main business must make the medical industry well, and then can drive the upstream industry chain.

One is the research and development and production of consumables, including materials for dentures and planting nails for dentures. Now basically are imported, not our own brand. However, the production of these materials is now very mature technology, all countries have. However, imported from Europe and the United States, a nail three or four thousand, why is so expensive dental implant, that is, the cost of materials is too expensive, and the first-hand profits have also been earned by others.

We will research and develop these products in the future, one is to supply our own market demand, and the other one can also sell my products with peers. This is an advantage over any manufacturer, because my own body mass, my own absorption is very large. As usual, 20% of annual depreciation, almost five years to be updated. Keep opening new stores, each store must buy equipment. If we develop our own production, it is very advantageous, because the number of stores each year with these devices, my own demand is sufficient to protect the production and profit of the plant.

We want to form a truly complete industrial chain: medical equipment, consumables research and development production, training, process management, technical output and so on.

If this upstream and downstream industry chain is completely built up, it eventually generates at least 50% of the revenue generated by the medical group.

As for the goal of the future, we will eventually seek listing in order to achieve greater and faster development. But now it will not. At least for five years, our main task will be to build two hundred stores and set up the industrial chain. Five years is not enough six years, six years is not enough seven years, eight years, because we must build a complete industrial chain, so as to promote the perfect development of this industry. This is why I say, be sure to do century-old.

We plan to achieve or exceed the development goal of setting up 200 medical institutions across the country and increasing the chain layout to 40 to 50 cities by 2017. At present, counting the new and under construction, the scale has exceeded 100. Over the next three years to build more than 100, that is, more than 30 each year. Adequate financial protection, can support such a speed of development. In the layout of the city, we hope that every capital city has its own medical institution, with a focus on the north, the upper, the broad and the deep. Three to five years later, we hope that all cities above prefecture level will have our own store or flagship store. The advantage of the chain lies in the sharing of resources can be shared, reducing procurement, management, human resources and other costs.