On [specific date], the Guangdong Provincial High People's Court released a batch of "Typical Cases of Bankruptcy Reorganization Serving High-Quality Development." Dongguan Guanghua Hospital became the first successful case in Guangdong of a comprehensive private hospital transitioning from execution to bankruptcy and from pre-reorganization to reorganization. So, how should we understand this revitalization case?

What does "bankruptcy wave" mean? In recent years, the topic of hospital bankruptcies has been spreading like a haze. The bankruptcy of some well-known private hospitals has brought the term "bankruptcy wave" to the forefront. Is there really a "bankruptcy wave"? There is not much direct evidence to support this, such as:

According to data from the National Health Commission, in a certain year, public hospitals in several provinces experienced losses, accounting for .%; among all tertiary public hospitals nationwide, .% were facing losses. In the same year, .% of all secondary hospitals nationwide also reported losses.

According to the "China Health Statistical Yearbook," the tens of thousands of non-public medical institutions nationwide collectively incurred a total loss of billions of yuan in one year, with an average loss of tens of thousands of yuan per institution.

Looking at the information available on the National Bankruptcy Information Network—the number of hospital bankruptcy announcements per year, year after year, although the National Bankruptcy Information Network only provides partial data, and one bankruptcy case may include multiple announcements, it is still evident that the data on hospital bankruptcies has indeed significantly increased.

However, some institutional research reports provide different descriptions and interpretations of the hospital market, especially the private hospital market. For example, the "Annual Private Medical Industry Research and Development Prospect Trend Forecast Report" released by Huayan Strategy Research suggests that from year to year, the private medical industry has shown a high level of prosperity, reflected in several aspects: expansion of the service market; broadening of business scope and service offerings; stable growth in financial indicators for most private medical institutions; improvement in the level and attractiveness of private medical services through the introduction of medical technology and equipment; and leading institutions launching new businesses such as telemedicine and health management.

However, at the same time, the competitive pressure within the industry is also increasing. The number of private hospitals in China has rapidly expanded from tens of thousands to hundreds of thousands. Hospitals are fiercely competing for market share. There are competitive relationships between public and private hospitals, among private hospitals themselves, and across different regions. As for the competition in service quality, facilities, and medical technology, it goes without saying.

Another market variable is the noticeable decline in investment and financing within the medical sector due to the broader environmental impact. For instance, the annual financing in the primary market for medical services dropped from . billion yuan to . billion yuan. Investments in the medical field have become more cautious, focusing on narrower scopes, and are more inclined towards projects with established operational foundations and advantages, as well as those that excel in new areas. Simultaneously, the focus of private healthcare has shifted from disease treatment to health management and medical care, with medical services becoming more segmented. Under these circumstances, private medical institutions can only survive by continuously innovating their models and improving service quality. Therefore, if a "wave of bankruptcies" occurs, it essentially means that some companies are being "weeded out" in the market differentiation process.

The key to revitalization lies in understanding the fundamental aspects mentioned above, which allows us to comprehend the bankruptcy reorganization of Dongguan Guanghua Hospital. In a certain month and year, due to the impact of group strategic decisions and the financial chain of affiliated companies, Dongguan Guanghua Hospital fell into a severe debt crisis, with a large number of assets being sealed and frozen by courts in various places. Creditors applied to the Dongguan First People's Court for bankruptcy liquidation. The court found that Dongguan Guanghua Hospital was involved in complex and numerous litigation and enforcement debts, amounting to approximately billions of yuan, making the crisis difficult to resolve. However, the hospital was still in operation, treating about a certain number of patients daily and accommodating about a certain number of inpatients. Additionally, it bore a significant medical responsibility for the surrounding towns and streets. The hospital's shareholders were willing to attract investment to revitalize the assets and requested the court to rule against accepting the bankruptcy liquidation.

The court analyzed and concluded that Dongguan Guanghua Hospital's practicing license qualifications are scarce, with a large asset scale and a solid operational foundation, possessing certain reorganization value and potential. Therefore, it "pioneered the pre-reorganization of the hospital" and initiated the pre-reorganization procedure on [date]. Subsequently, the pre-reorganization of this case was successful, highlighting at least two key points: 1. Proactive Judiciary. The court collaborated with the World Dongguan Merchants Association to introduce investments from Dongguan Private Investment Group Co., Ltd. and its member shareholders. Later, Dongguan Wanli Health Technology Industry Co., Ltd. became the intended investor. The intended investor ensured the hospital's normal operations through a public welfare debt of [amount] million yuan, and then invested [amount] billion yuan in reorganization funds to complete the reorganization. 2. Judicial Support. The Dongguan First People's Court resolved several critical issues during the reorganization process, such as assisting the reorganization investor in acquiring a [percentage]% equity stake amidst complex pledges and seizures, and safeguarding the investor's "social security designated qualification." 3. Autonomous Negotiation. Under the premise of judicial support, the reorganization involved tripartite negotiations among the debtor, creditors, and investors, effectively linking out-of-court restructuring with in-court reorganization. Nearly [number] creditors with approximately [amount] billion yuan in debt were successfully cleared, with a general creditor repayment rate of [percentage]%.

As summarized by relevant experts, the pre-restructuring of Dongguan Guanghua Hospital reflects the combination of a "proactive court" and an "effective market"—the court handles its responsibilities, and the market operates according to its mechanisms. Therefore, the case has progressed smoothly: from the decision to pre-restructure to the acceptance of the restructuring application, it took less than a month; from the formal acceptance of the restructuring to the termination of the restructuring process, it only took a few days. Investors have expressed recognition in two aspects regarding the investment in restructuring Dongguan Guanghua Hospital: firstly, they recognize the project potential of Dongguan Guanghua Hospital, and secondly, they acknowledge the professional capability of the court. So, what potential do investors see in Dongguan Guanghua Hospital? The investor in this case is Dongguan Private Investment Group Co., Ltd. Established in a certain year, this group is one of the most representative and extensive private economic consortia in Dongguan, formed by the joint establishment of multiple private institutions. It is positioned as an "industrial development service provider," with deep involvement in areas including modern technology industrial park operations, urban complex development, premium residential development, industrial and financial investment, and big health industry investment. Dongguan Guanghua Hospital fits within its scope and direction of big health industry investment. Established in a certain month and year, Dongguan Guanghua Hospital is a large comprehensive private hospital in Dongguan, Guangdong, integrating medical treatment, prevention, scientific research, and education, with over a thousand employees and a peak annual revenue exceeding one billion yuan, demonstrating a solid operational foundation. Additionally, Dongguan Guanghua Hospital is described as having an "elegant environment, pleasant scenery, with a backyard featuring small bridges and flowing water, birdsong and floral fragrance, and a greening area of over %, making it an ideal place for treatment and wellness."

东莞光华医院实景东莞光华医院后花园 利用这一“治疗、养生的理想地”，东莞光华医院将“逐步向高端医疗、健康管理、康复修理等领域拓展，将光华医院打造成为粤港澳大湾区知名的‘康复养护’特色三甲园林式综合医疗机构”。因此，东莞民营投资集团对东莞光华医院的盘活，是利用既有资产的优势，通过重整实现产业升级与产业细分，占据市场先机。至于盘活的未来，东莞光华医院所代表的民营医疗市场至少面临三个基本利好：1.人口的老龄化增加了医疗保健需求；2.居民收入水平提升，提高了为高质量医疗服务付费的意愿；3.国家政策的支持。