Kanghua Hospital “operating room full of money” behind: shoulder the profit responsibility of listed companies, embroiled in medical disputes

2022-05-03 0 By

The China economic weekly “reporter WuSuWen | guangdong reported a stamped with” operating room is full of money “banner, let the dongguan guarantee hospital on the cusp of public opinion.The contradiction between the hospital’s “duty to heal the wounded and save the dying” and the “profit-making” impulse interrogated private hospitals again.(Photo from Internet) Years ago, a poster read: “Tiger Tiger is alive to welcome the New Year, the operating room is full of money!”Photos of the banner’s annual dinner circulated on the Internet, arousing public skepticism and damaging influence.After kanghua Hospital’s official account posted an apology on the early morning of January 27, the topic quickly went viral on Weibo.The hospital said in statement: “late January 21, our center part operating room personnel to organize a meal in a restaurant, in order to create a relaxed dining atmosphere, have a nurse to make the banners hanging at the scene, banner statement is improper, seriously violated the hospital, the guideline of after uploaded to the Internet has a bad influence.We are deeply saddened by this and solemnly apologize to society.”Since the nurse spontaneous production, hanging, but no one on the scene put forward inappropriate and removed, everyone or “tacit understanding”?The hospital also gave the official way to deal with the case: the responsible person will be severely criticized and educated at the first time, the departments and individuals involved will be further investigated, and the case will be seriously dealt with in accordance with the relevant rules and regulations of the hospital.The “outspoken” private hospital was nicknamed “accidentally told the truth” by netizens.After all, they are inevitably profitable, but they are still stuck making profits.Guarantee medical falling profits in recent years, the guarantee hospital is its main revenue according to public information, guarantee by dongguan dongguan guarantee hospital built group invested 2.6 billion yuan, in September 2002 founded in November 2006, officially begin in June of 2018 through the third review, is China’s largest private for-profit, and is the first top rating general hospital.According to the APP, Dongguan Kanghua Hospital is owned by Dongguan Kanghua Hospital Co., LTD., which is 100% owned by Guangdong Kanghua Medical Co., LTD. (hereinafter referred to as kanghua Medical).Kanghua Medical was established in 2002 with a registered capital of 334 million yuan.On November 8, 2016, Kanghua Medical was listed on the Hong Kong Stock Exchange, the first private medical institution in Guangdong province to be listed in Hong Kong.In terms of revenue by department, related departments of obstetrics and gynecology are the primary and stable revenue source of Kanghua Medical, accounting for 14.9% in the first half of 2021, followed by related departments of internal medicine and cardiovascular, accounting for 11.6% and 11.3% respectively.As far as Kanghua Hospital is concerned, it has built characteristic management centers and more than 50 specialties, such as cardiovascular medicine, obstetrics and gynecology, burn plastic medicine and general surgery.In terms of revenue, kanghua Medical’s comprehensive income in 2020 was 1.745 billion yuan, down 10.8% year on year.In the first half of 2021, Kanghua Medical’s consolidated revenue was 871 million yuan, up 14.5 percent year on year.In its earnings report, Kanghua attributed the increase to higher revenue from its hospital services division and an overall increase in visits by patients operated by its own hospitals.It is reported that the hospital service department of Kanghua Medical Consists of kanghua Hospital, Renkang Hospital and Kangxin Hospital.Kanghua Hospital, which has always been the main revenue source of Kanghua Medical, recorded revenue of 1.555 billion yuan in 2019 and 1.357 billion yuan in 2020 due to the impact of the epidemic, down 12.7% year on year.In the first half of 2021, Kanghua Hospital’s performance gradually recovered, with a revenue of 672 million yuan, up 9.7% year-on-year.In the first half of 2021, Kanghua Hospital received 512,000 outpatient visits, 18.9% more than the same period last year;The number of hospital admissions was 24,000, up 16% from the same period last year.The average expenditure per hospitalization was about 17,000 yuan, 14.3% less than last year;The average expenditure per outpatient visit was 447 yuan, an increase of 3.3%;The average expenditure per person on physical examination services was 1,523 yuan, up 37.3% year on year.The net profit of Kanghua Medical has fluctuated greatly in recent years.In 2017 and 2018, the net profit of the company exceeded 160 million yuan, which decreased by 69.81% to 4868.8 yuan in 2019. In 2020, the profit turned into a loss, with a comprehensive loss of about 50 million yuan.In the first half of 2021, net profit reached 14.799 million yuan, up 111.72% year-on-year, but far from the previous.On Jan. 27, the day after the banner incident, Kanghua’s shares fell 2.7% to close at HK $2.46, giving the company a market value of HK $823 million.The company’s shares have fallen 14.58% in the past month.Kanghua Hospital has been involved in medical disputes for many times, involving arbitrary charges and diagnosis and treatment errors. Kanghua Hospital has many titles, such as “2017 National Honest Private Hospital” and “2019 Top 100 Chinese Non-Public Hospitals” (third place).”Top 30 Listed Medical Service Enterprises in China”, “Top 80 Best Hospitals in Guangdong-Hong Kong-Macao Greater Bay Area”, and the first group of Council units of China Association of Non-public Medical Institutions in Guangdong Province.But fame and fortune at the same time, Kanghua hospital has been repeatedly involved in medical disputes.According to eye check APP statistics, since 2016, dongguan guarantee hospital co., LTD., more than 50 law proceedings, to medical service contract disputes and the dispute of medical liability for damage is given priority to, among them as defendant as to the identity of the medical treatment damage dispute are eight (article 5) need to take responsibility, as the defendant as to the identity of the medical service has 1 the contract dispute.The medical service contract dispute involves the billing and cost of examination items.According to the legal documents, the defendant’s doctor did not order the examination as suggested by the endoscopic graphic report, and ordered more PLAIN CT scan than the original enhanced CT scan, causing the patient to undergo two CT examinations. Finally, the court determined that the defendant should refund the cost of plain CT scan and part of the compensation for enhanced CT scan.Fetal death in together, despite the plaintiff as a high-risk women themselves suffering from the severity of the disease and the occult, guarantee the hospital is also not to differential diagnosis, maternal abdominal pain for continuous cardiac monitoring of negligence, and there is a causal relationship of fetal death, is another factor that lead to fetal death, the court so that the hospital should bear 50% of the liability to pay compensation.In a cranial repair operation, the hospital did not timely and effectively manage the airway and failed to make timely assessment and take measures according to the patient’s condition changes in the diagnosis and treatment process, which were considered to be indirectly related to the death of the patient, and the hospital should bear 30% of the compensation liability.In 2019, Kanghua Hospital was also warned and fined 10,000 yuan by dongguan Municipal Health Bureau for failing to write medical records in accordance with regulations.China Economic Weekly’s calls to Kanghua Hospital before publication were not returned.In fact, the banner event of Kanghua Hospital is not an isolated case.In February 2019, the health center of Fanji Town, Xiangcheng City, Zhoukou city, Henan province, caused public doubts because of Posting couplets that read “Daily money” and “fortune”. The health center explained that the couplets were accidentally pasted by temporary workers.Such remarks are controversial, with many netizens saying that the hospital is just “accidentally speaking the truth” and expressing itself too frankly.However, netizens who hold the opposite view think that healing the wounded and saving the dying is not to achieve the enterprise KPI, so the hospital’s value should not be profit-oriented.A public hospital system official told China Economic Weekly that it is a cruel reality that public hospitals in his region will conduct business ranking at the end of every year, let alone private hospitals chasing profits.However, as a special institution, “healing the wounded and saving the dying” must be the first duty of the hospital, which is also the expectation of the public. It is not difficult to understand the sentiment of public opinion on such slogans.Looking back on the development of private hospitals in China in recent years, the number of private hospitals exceeded that of public hospitals in 2015, and nearly doubled that of public hospitals by 2020.According to the National Health Commission, the total number of hospitals in China was 35,500 by the end of March 2021, including 11,800 public hospitals and 23,700 private ones.The proportion of private hospitals has been as high as 66.7%, with an average annual growth rate of more than 12% in the past decade.The rapid development of private hospitals is inseparable from the continuous support of policies.According to incomplete statistics, since 2010, more than 20 documents have been issued at the central and national levels on promoting the development of non-governmental medical institutions and non-public medical institutions, making breakthroughs in access, taxation, land and service purchase.However, private hospitals are always facing multiple pressures from management and public opinion.With the advent of COVID-19, private hospitals are facing a major industry reshuffle.In 2019, 347 private hospitals were reported to have been deregistered, while in 2020, the number soared to 685.After entering 2021, Guangzhou Nanyang Cancer Hospital Co., LTD., Jiaozuo Tongren Hospital, Sichuan Deyang Mei Infant and Maternity Hospital…A number of private hospitals lined up for bankruptcy.The data from the China Health Statistics Yearbook 2021 are not encouraging either.In 2020, the total income and expenditure of various medical and health institutions in China were about 4.87 trillion yuan and 5 trillion yuan respectively.Among them, non-public medical institutions earned 676 billion yuan, spent 806.7 billion yuan and suffered a loss of 130.7 billion yuan.Although the number of private hospitals is nearly twice that of public hospitals, the total number of public hospitals in 2020 reached 2.792 billion, while the number of private hospitals only accounted for 531 million, accounting for 16%.Although this ratio has increased by 3.1 percentage points compared with 2016, it is still far lower than public hospitals, which to some extent reflects the impression of private hospitals in the minds of the public.Loss, closure, bankruptcy, anomie…The spring of civilian battalion hospital, still seem very far away.Editor: Guo Fang