The Secretary of State for Health, Jeremy Hunt, has today (6 December 2016) witnessed the signing of a new UK-China hospital partnership that will further strengthen UK-China relations.
The UK’s International Hospitals Group (IHG) and China’s Dalian Wanda Group have deepened their relationship by signing a 20 year joint venture to operate the first of Wanda’s hospitals, the Qingdao Wanda IHG International Hospital, in Shandong Province.
This new JV agreement is further to the signing of a RMB15 billion cooperation contract on 6th January 2016 in Beijing, between IHG and Wanda to design, construct, equip and operate 10 hospitals in China with Wanda’s role being owner and IHG’s role being operator. The agreement was witnessed by the U.K. Foreign Secretary Philip Hammond and Wanda’s Chairman, Wang Jianlin.
The new operational JV, signed today, is for the first of these ten hospitals in Qingdao. The JV is 70% owned by IHG and 30% by Wanda. It is expected to generate revenues of over RMB 4 Billion (GBP 450 million) over the first 7 years of the 20 year life of the joint venture. The 200-bed hospital, located close to Wanda’s new movie metropolis in the Huangdao District of Qingdao, will open in 2018.
This will also be the first project that will benefit from IHG’s collaboration with Cambridge University Judge Business School to deliver innovative leadership programmes to equip the next generation of clinical leaders in China with skills to meet the global challenges of 21st Century healthcare for the benefit of patients in China.
The decision for IHG and Wanda to establish an operational joint venture in addition to its existing 10 hospital development agreement is a reflection of the mutual confidence and trust that has grown between our two companies. It is our desire to work together to establish one of China’s leading hospitals, delivering the best international standards and supported by our strategic partners in the UK’s NHS