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Prescription for success

Oliver To

Chain clinics are expanding in HK as they provide specialised medical services for a reasonable price

Local and international medical groups are changing Hong Kong's private medical sector as they expand and add specialised services to their portfolio.

Operating differently from individual practices, medical chains have the edge of offering a full range of services under one roof, from general medical consultations, in-house specialist services, health screening, dentistry, dermatology, traditional Chinese medicine and wellness services to performing minor operations, such as endoscopy, colonoscopy and excision.

These medical centres offer integrated, multidisciplined health care services to people from all walks of life.

'Chain clinics' operations in the private sector have their roots in the United States and this business model has blossomed from the 1960s. Hong Kong's health care market has followed in the footsteps of the US in recent years,' said Ronnie Hui Kai-wah, executive director of Town Health International Holdings Company, a local private medical group which started operations in 1989 and has since grown to run 22 clinics across the city.

'With decades of development, chain clinics have developed into a very mature market and there are a number of other operators among the competition.'

According to Mr Hui, people who visit a medical centre are usually corporate executives, whose companies offer medical plans, expatriates and locals.

'Private medical centres offer choices of doctors from various medical disciplines and patients can enjoy the convenience of having different doctors from different specialist areas at one single location and the fee is relatively lower,' said Julie Chow Chi-lei, director of marketing and communications at Quality HealthCare Medical Centre.

Chain clinics have the advantage of being able to offer services to patients at lower prices as most of the resources can be shared among other clinics within the group.

'The competitive strength of chain clinics lies in economies of scale. Supportive resources can be pulled together and a large clientele base can be formed. This provides cost advantages as the costs on procurement, nursing support, marketing and many others can be shared,' Mr Hui said.

Tapping into the pulse of the latest medical knowledge and technology is the key to serving patients effectively and efficiently. With that in mind, Quality HealthCare organises internal and external programmes for medical professionals within the company.

'We provide more than 6,000 hours of training, sponsorships, medical conferences and study leave to our medical staff for their professional development. We always put our patients' interests first when it comes to health care,' Ms Chow said.

The economic turmoil has unavoidably affected Hong Kong's health care sector, but its impact is considerably less acute, according to Mr Hui, because it is deemed as a basic necessity.

'With a financial tsunami of such huge magnitude, it is inevitable that even the health care market may face certain pressure. On the other hand, with the property market tumbling, our rental costs are on the decline and this cushions the economic shock,' Mr Hui said. The company aims to continually improve its operating efficiency to maintain its cost-effectiveness and ensure prices are competitive in the market.

As the number of these clinics grows in Hong Kong, the challenge for the private health care industry is not so much about further expanding locally as about penetrating into the mainland market. Understandably, the health care system on the mainland is very different from that of Hong Kong.

'Our group is embarking on the development of an integrated clinic chain on the mainland for the health care market,' said Mr Hui, adding that the major challenge was to overcome many administrative hindrances and hurdles posed to outside players. 'The health care sector is still a protected industry on the mainland,' he said.

Job opportunities for medical professionals in the private sector will increase as more health care service providers are needed for baby boomers who will be in their late fifties over the next decade or so. There are also expectations of a rise in demand from mainlanders seeking consultation from experienced Hong Kong professionals.

Hong Kong private medical groups require not just doctors and nurses, but also people with expertise in areas such as marketing, administration and management. 'This is especially so when we enter the mainland market. information technology [IT] engineers are also needed to develop and maintain an IT framework which connects clinics at different localities and is able provide the management with real-time figures on inventory and revenue,' Mr Hui said.

Key players

General practitioner

Registered nurse

Dispenser

Radiographer

Laboratory technician

Phlebotomist

Receptionist

Health care assistant

Jargon

General practitioner someone who practises general medicine and provides general consultations to patients

Specialist a medical professional who specialises in a particular medical discipline and is usually referred to by a medical doctor for further diagnosis if the patient's problem persists

Physical a series of tests performed for a body check, including blood and urine tests, cholesterol screening, a lung function test and an electrocardiogram heart test

Chit an order sheet detailing the diagnosis of a problem is sent to various departments for further investigation or treatment

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