Development support for HK’s first private teaching hospital


The problem

  • Our client, a prestigious University in Hong Kong, was building a new 500-bed private teaching hospital, with the aim of creating affordable, not-for-profit private care options for the population of Hong Kong. The new hospital will deliver a minimum of 70% of its services under packed pricing, alongside acting as HK’s first private teaching hospital. These factors mean that the hospital has no clear precedent in the market and needed support with strategic position and revenue/operating model development. 
  • Asia Care Group was commissioned to support the hospital to identify and assess target markets, assess products and services that would meet population need and translate this into models of care, revenue and pricing models


What we did

  • Developed a customer segmentation model and undertook both primary and secondary research to better understand the healthcare utilisation rates, needs and wants of each population segment.
  • Reviewed the hospital's current operating model and business plan including both revenue and operating costs. Advised on adjustments to these in line with the results of our market testing.
  • Advised the hospital on the financial viability of the new hospital under numerable scenarios, including complex mixed revenue streams (self-pay, PPP, subsidies, etc.)


The result

  • The hospital has a robust healthcare needs assessment, segmented by age, income and levels of current health coverage and willingness to pay for services. This has helped inform their strategic positioning and operating model development.
  • The hospital has greater understanding of revenue streams, and in turn have a better view of how pricing can be established. There is greater commercial understanding of the financial challenges of operating a private hospital, and enhanced ability to manage interactions with new target markets segments.
  • The hospital has a strong financial viability assessment for their new hospital, modelled under a number of scenarios.