The Effects Of The Reverse Purchase Of Medical Enterprises On Corporate Performance

With the improvement of the residence income and the awakening of healthconsciousness,the medical industry has gradually developed into a specialized,large-scale and characteristic mode.Since the new medical reform in 2009,the government has continuously encouraged the social capital to provide medical treatment and provide solutions for building the graded diagnosis.Taking advantage of the structural reform of the medical industry,private medical institutions have grown rapidly,and lots of private medical groups with large scale have emerged,such as Fosun Group,Phoenix Medical,and Aier Ophthalmology.However,the gap of the resources and service capabilities between private medical groups and stateowned medical groups is still very different.Since the opening of the medical reform in 1993,the medical industry has undergone several profound changes.The reform of public hospitals is a core link in the final plan of the new medical reform.As a medical and health service terminal,public hospitals have all kinds of contradictions and problems,and have become a "fortress" that cannot be avoided.The government encourages social capital to participate in the reform of public hospitals through mergers and acquisitions,custody,etc.But at the same time,in order to prevent the loss of state-owned assets and operational difficulties caused by capital conflicts in the hospital,the government has designated six central medical groups as the hosting platform for public hospitals.On the one hand,private medical institutions enjoy the policy and are eager to develop and grow.On the other hand,they face the absolute dominant position of public medical institutions and have narrow development space.Under the contradiction of imbalanced capital structure in the industry,if private medical institutions want to develop,they must acquire more medical terminals to cater to the construction of graded diagnosis and treatment mode,and participate in the transformation of public hospitals.For private medical institutions,it is necessary to use state-owned capital to obtain political resources and use their background to participate in the reform of public hospitals.For state-owned medical institutions,it is necessary to take advantage of the advanced management concepts and management experience of private medical institutions,and force state-owned capital to improve management levels,reduce costs,and adapt to industry competition.Therefore,under the background of mixed ownership reform in public hospitals throughout the medical industry,cooperation between state-owned medical groups and private medical groups has emerged,and mixed ownership reform within the group is also being staged.Private capital and state-owned capital will increasingly face the game under the same company.In the general hospital industry,the integration of China Resources Health Group and Phoenix Group is regarded as the typical case for mixed ownership reform in the medical service industry.This paper will select this case for detailed analysis.China Resources Health Group,as one of the four state-owned medical groups,represents state-owned capital,and Phoenix Group,as the largest private medical group,represents private capital.The form of this mixed ownership reform is not the traditional one that private company buys state-owned enterprises,but the state-owned medical group to reverse the purchase of private medical groups.As the reverse purchase was completed,some of the high-quality assets of the stateowned medical group were listed.In this merged group entity,state-owned capital is controlled,but private capital does not completely abandon control.The two parties seek to co-exist at the beginning of the reverse purchase.At this level,it reflects the state of interdependence and balance between state-owned capital and private capital.Subsequent changes that may occur in enterprises are also the epitome of capital games in the industry.This article deeply explores the changes in the performance of mixed-ownership medical institutions and proposes improvement measures by exploring the changes in performance brought about by the combination of private medical groups and state-owned medical groups in the context of the mixed reform of medical enterprises.This provides a reference for the reform and development of China’s medical enterprises,and also provides a reference for the new form of mixed reform.This paper has six chapters.Firstly,it introduces the background of the topic and the related theoretical basis and related literatures of mixed ownership reform,reverse purchase and M&A performance.Secondly,it sorts out the policies of China’s medical industry.The current situation and the reverse purchase status are statistically analyzed,and then the event research and financial analysis are conducted through the reverse purchase behavior of the medical industry.Furthermore,this paper provides an in-depth analysis of the drivers of reverse purchases in this case,and details the reverse purchase process,subsequent control rights,and management changes,with a view to a more sustained and in-depth understanding of reverse purchase behavior.More,from the two aspects of market value and financial performance,the article analyzes the performance of China Resources Medical before and after reverse purchase and other relevant key nodes.Finally,this paper summarizes the effects of reverse purchase behavior in the medical industry and proposes relevant recommendations.Secondly,this paper selects the angle of mixed reform,distinguishes the concept of reverse purchase and backdoor listing from the motivation aspect,and explains its meaning more diversified.Thirdly,this paper quantitatively analyzes medical treatment through event research method and financial analysis method adding new data to existing research results.The research contributions of this paper mainly include the following points: First,the case selection of reverse purchase has the particularity of form and the universality of industry trends,which can be used as a microcosm of industry capital game,and can also provide reference for new forms of enterprise mixed reform.The shortcoming of this paper is that the data used in the case are based on the enterprise report,and the authenticity is limited.The research scope of the reverse purchase event is limited,the research method design is not scientific and rigorous,and the more perfect model is not used to consider more factors.