Tongce mentioned in its 2021 annual report that it hopes to grow into China's Mayo through three decades of hard work.
What is the purpose of Tongce Medical's acquisition of Heren Technology? From the open letter to all shareholders in the 2022 annual report, it was mentioned that the management system of the single-case system has not yet been perfected.
Lv Jianming, the founder of Tongce Medical, said, "Our HIS system (Hospital Management Information System) is an ERP system with financial management as the core, not a real digital system. ”
Lv Jianming mentioned that Tongce needs to optimize the Tongce cloud medical management system with a single medical record as the core, but a unified electronic medical record system requires huge investment, and at present, in addition to the acquisition of Heren Technology, "there will be no better choice".
Wu Zhijia, the founder of e-Dental Care, mentioned whether the clinic should develop its own software: "From a global perspective, from 2016 to 2017, Mayo Clinic spent $1 billion to buy the EPIC system, and professional things should be done by professional people. ”
From the perspective of the acquisition of Heren Technology, Tongce is also preparing for expansion, how will it be implemented?
From Meadville Dental, Malong Dental, Jiamei Dental, and the output of DSO, maybe you can see something.
DSO (Dental ServiceOrganizations) is an organizational form of oral medical services, which aims to provide non-clinical business support services for dentists and help clinics solve a series of problems encountered in the process of operation, such as capital, management, and operation.
The oral DSO operating model can be divided into three main categories.
Judging by the DSO of Malong Dental.
What do DSO partner clinics get?
Provide support in outpatient operations, mainly involving medical support, marketing guidance and customer management.
Brand authorization, so that partner clinics can use the brand to acquire customers.
Using the brand industry chain platform and bulk procurement, you can purchase oral medical equipment and supplies at a lower purchase price.
What do Malong Dental get?
It has improved the brand's visibility in the industry.
Additional revenue from the sale of dental medical equipment and supplies.
Through the DSO program, we can gain a comprehensive understanding of the operations and financial status of partner clinics, select and identify potential acquisition targets, and expand rapidly through acquisition investment.
Malong Dental is not liable for medical malpractice and under no circumstances will it be considered to be directly or indirectly involved in any medical practice of the DSO cooperative outpatient clinic for the purchase of DSO services.
Exclusiveness. The agreements for the Basic Membership Program, the Brand Licensing Program and the Deep DSO Program contain exclusivity clauses under which the DSO Cooperative Clinic shall not cooperate with any institution, organization or individual to carry out business activities similar to its existing cooperation with Malong Dental.
Judging from the DSO of Meadville Oral Cavity.
*: Meadville Dentistry.
Meadville follows the "business partner mechanism" to allow doctors to participate in shares, enjoy benefits, and improve initiative.
From the perspective of the industry's DSO, Tongce Medical's acquisition of Heren Technology is also to export its own capabilities, select high-quality assets to acquire investment, and accelerate expansion.
At the same time, Tongce Medical's investment in Heren Technology is also for investment income
In the open letter to all shareholders in the 2022 annual report, it was mentioned that the specialty fields carefully laid out under the guidance of the original multi-specialty strategy will take a share of the pie and create excess returns for the shareholders of Tongce Medical.
Chairman Tongce is indeed keen on investment, although the investment ability is good, but should it be better to focus on the main business?
Single brand, multi-brand, is the choice of enterprises on the road to expansion.
For example, Tsingtao beer and Chongqing beer are among the beers. Sportswear of ANTA Sports, Li Ning. In fact, the oral medical industry is also comparable.
Tsingtao Beer vs Chongqing Beer
Brand strategy for the beer industry.
From the perspective of the industry's brand strategy, Tsingtao Beer's brand strategy of "1+1" is relatively streamlined, and Tsingtao Beer's products are mainly promoted and sold in the mid-to-high-end beer consumption market; Other brand products represented by Laoshan Beer are mainly sold in the mass consumer market, and together with the main brand products, they constitute a complete brand and product structure system covering the national market.
The brand strategies of Chongqing Beer and China Resources Beer are relatively similar, with more than that, one "6+6" and one "4+4".
Tsingtao Beer also had about ten brands before, and finally it was reduced to two. Streamlining the brand strategy allows enterprises to concentrate resources on marketing, which is more conducive to forming synergies than multiple brands. Chongqing beer multi-brand is not a brand from 0 to 1, and it is not as difficult as the start-up stage, because it already has a certain popularity. There are so many brands, and it is quite difficult to continue to grow bigger. For example, 2,000 people operating 2 brands or 12 brands, which is more likely to succeed? With more brands, can you reach more user groups?
Although the loyalty of consumers who drink beer is not so high, the current competitive landscape is also relatively stable, with a high degree of concentration, and the top brands are more beneficial. China's top five beer companies, China Resources Beer, Tsingtao Beer, AB InBev, Yanjing Beer and Carlsberg, accounted for more than 80% of the market share of China's beer market in 2020.
There are not so many ** bands of beer, for example, Chongqing Beer divides beer into three ** zones.
High-end: consumption ** RMB 10 and above, products include Wusu, Carlsberg, 1664
Mainstream: Consumption ** RMB 6-10, products include Lebao, Chongqing, Dali.
Economy: Consumption ** RMB 6 or less, products include mountain city, Tianmu Lake.
Chongqing Beer reported interim revenue in 2023.
Tsingtao Brewery's 2023 interim revenue report, Tsingtao Beer's main brand achieved a total of 281 product sales20,000 kiloliters, an increase of 82%；Among them: the sales volume of mid-to-high-end products above 19750,000 kiloliters, an increase of 15% year-on-year.
High-end beer reported a year-on-year increase of 174%。The fatal big Wusu, who drank beer that was easy to get drunk, was the rise of Internet celebrities for a while?
Which beer brand of Chongqing Beer is stronger than Tsingtao Beer?
Anta vs Li-Ning
ANTA's "Single Focus, Multi-Brand" strategy.
Single focus: focus on the sports shoes and apparel industry and consumer value, and do a good job in every pair of shoes and clothes; Each brand focuses on the mental category and establishes a leading position in the market segment.
Multi-brand: meet consumer needs with multiple brands, create diversified consumer value, and create a multi-brand matrix of professional sports, fashion sports, and outdoor sports; Strengthen the group-level shared platform that empowers the development of multiple brands.
Li Ning's strategy is a "single brand, multiple categories" strategy.
The benefits of single-focus and multi-branding, Anta mentioned that the differentiated layout of multi-brand spans the brand matrix of fashion and professionalism, high-end and mass, and effectively covers consumers and channels. In order to respond to more segmented market demand, it is necessary to strengthen their respective brand positioning, establish a stronger brand imprint, and take root in the minds of consumers.
Tongce brand strategy
Over the years, Tongce has acquired local well-known dental hospitals, and then developed them in the mode of "regional general hospital + branch hospital". This model has developed really fast, and it has also saved a lot of marketing and promotion costs. This model can also deepen the regional brand, but it is not conducive to the building of the national brand, so on December 22, 2023, the brand strategy of the national chain dental institution will be launched. The new logo was launched, the "Tongce Dental" brand was released, and it developed into a national chain dental institution with the brand name of "City + Tongce Dental".
City + Tongce Mouth" brand, why is the city in the front and Tongce in the back?
The Mayo model that Tongce borrowed from used to be like this. In 1992, the United States signed the Health Care Reform Act, and the medical industry and medical insurance were divided into regional network systems. Considering that the local hospital clinic has regional attributes and community characteristics, Mayo cooperates with the acquired hospitals in an open naming method, and the clinic still retains the previous name, putting Mayo behind. For example, after the cooperative acquisition of Austin Hospital, it became "Austin Medical Center - Mayo Health System".
Hangzhou Stomatological Hospital and Ningbo Stomatological Hospital are in the urban area, with strong brand effect, which is the main reason why the national brand develops under the brand name of "City + Tongce Stomatology"?
The company's annual report is mentioned almost every year, so let's briefly understand Mayo and amoeba.
Mayo Team Mode
Focusing on "patient first", build an interprofessional team practice model.
With a history of 150 years, the Mayo Clinic is the world's largest comprehensive nonprofit physician practice. The city of Rochester, where the headquarters is located, is known as "one of the greatest medical centers in the world", "Medical Mecca". Doctors from all over the world use it as the highest temple in the medical profession to exchange and learn.
The world's first ambulance was invented by the Mayo Clinic, and the world's first ICU ward was the first to appear at the Mayo Clinic.
Mayo Clinic's revenue in 2022 exceeded 15.7 billion US dollars, equivalent to about 113.3 billion yuan. And our largest hospital in China in 2022, the First Affiliated Hospital of Zhengzhou University, is only 2183.3 billion, almost 5 times the distance.
The Mayo Clinic is well-known, and even Franklin, Roosevelt, Nixon, Bush, etc. in the United States** have come here for treatment.
The Mayo Clinic's comprehensive medical record system, known as the Unified Comprehensive Medical Record System of the Knowledge System, integrates patient information from all departments of the clinic.
The early medical records were more like doctors' professional diaries, "doctor-centered", which was convenient for recording patients' conditions from their own perspectives.
Later, it was changed to "patient-centered" and recorded the patient's visit information.
In the multidisciplinary collaboration model, it is not a doctor who sees a patient, but a doctor from multiple departments, who works closely together to develop a patient's best plan, which can ensure that the patient gets a better plan.
The integrated medical record system, from paper to electronic medical record book, cost more than $1 billion to upgrade the system.
Tongce mentioned: tailor-made medical service team for each customer, bringing together a team of doctors in different specialties to provide medical care services for each customer, through the "first diagnosis system" by the first doctor is responsible for negotiating and communicating with other doctors in the hospital, determining the diagnosis results and formulating the first plan, providing customers with services will not only be a doctor, but "the whole organization".
Stomatology, is this model needed? Sounds lofty, is it necessary for dentistry?
Amoeba business model
Amoeba management is a process in which the organization is divided into small groups and operated through an independent accounting system linked to the market, so as to cultivate leaders with a sense of management within the company and to involve all employees in management"All employees participate in the operation"The method of independent management. It is a management method developed by Kyocera founder Kazuo Inamori based on practical experience. --Excerpt from Kazuo Inamori's official **.
By introducing amoeba management, Japan Airlines, which had been losing money until now, achieved an operating profit of 188.4 billion yen in the second year. From bankruptcy to re-listing, it took only 2 years and 8 months, creating a business myth.
There is also SoftBank, which also benefits from amoeba operations.
Masayoshi Son, the founder of SoftBank Corporation, also studied at Moriwa Juku, which was established by Kazuo Inamori, and worked as a juku student for 5 years. He said that without Inamori's philosophical idea of "respecting heaven and loving people", and without Inamori's amoeba management, SoftBank would not be where it is today.
Rude, for example, what is amoeba management.
For example, an electronic manufacturing company has three departments, namely the electronic processing department, the assembly department, and the sales department.
The electronic processing department is responsible for the procurement and production of electronic components, processing, the cost of 10 yuan, after the processing is completed, then 15 yuan is sold to the assembly department, the assembly department assembles the electronic components into a complete electronic product, 20 yuan is sold to the sales department, and the sales department sells 50 yuan to consumers. Internally, in this way, costs and profits are calculated independently.
Tongce mentioned in the 2022 annual report that it will continue to implement the amoeba business philosophy, reasonably divide the cost and expense accounting units, and more accurately reflect the real business situation of each team. At present, using the amoeba accounting method, each hospital will analyze the operating data of all doctor teams in the hospital every month, including various cost data, operating income, outpatient visits and other data. On this basis, it is necessary to continue to improve the collection of team expense data to more truly and accurately reflect the team's business situation. In addition, it is also very important for the doctor team to agree with the amoeba concept, so that the doctor team can better understand the amoeba concept and enhance the overall cohesion of the team. The team aligns with the overall goals and direction of the company to create added value for amoeba and drive sustainability.
Can you learn amoeba management?
What is most important to JAL's success?
Is it a preferential policy of the state? Kazuo Inamori's prestige, philosophy (guiding ideology), and the structure of the company?
Kazuo Inamori said: "The main thing is that I have moved the executives and employees of JAL. I'm 78 years old, and as a layman in the aviation industry, I don't get paid, I don't have any personal interests, I don't have anything to do with JAL, and I don't get paid for my success. At the risk of "tarnishing the evening", I spurred this old bone on the spur of my own health, and threw myself into the reconstruction of JAL. The JAL employees were moved to see people as old as their fathers and grandfathers working so hard for their well-being, and they felt that they couldn't do it if they didn't work harder! The rebuilding of JAL was made possible thanks to the united efforts of all JAL employees and continuous reform and improvement. --Excerpt from "Amoeba Management".
The book mentions the philosophy of amoeba management, "What is right as a human being? “
The employment characteristics of the Japanese environment at that time contributed to this model. For example, the lifelong employment system, the annual merit sequence system, and the reward system.
Lifelong employment: Once an employee is officially hired by a company, he or she will remain with the company until retirement. Except due to the employee's own responsibility, the business owner refrains from dismissing the employee.
The core idea of this system is that with the growth of employees' working hours in the enterprise, their technical proficiency and contribution to the enterprise will be improved accordingly, so the wages and benefits of employees should increase year by year.
Amoeba management is not a reward, and it does not adopt a reward system that stimulates people's hearts with money, and it is worried that jealousy and resentment will inevitably lead to the dissolution of people's hearts.
When it comes to our Chinese enterprises, it seems that they are all the best rewards. There is no good or bad way to do it, only which one is more suitable, right?
Amoeba management of this kind of refined operation and management is still very effective for enterprises, otherwise there will not be so many enterprises to learn and imitate.
The notice of the National Medical Security Administration on carrying out the special management of charges and consumables for oral implant medical services mentions that the "separation of technology and consumption" of oral implant medical services will be promoted in an orderly manner. Public medical institutions provide oral implant medical services, mainly using the separate charging method of "service items + special consumables". That is, the implant placement fee is priced separately from the implant consumables system**; The crown placement fee is priced separately from the crown product**; The cost of bone grafting surgery is calculated separately from bone meal and periosteum**. For the current situation where consumables are combined and charged in the medical service ** project, when the "separation of technical consumption" is implemented, the item ** should be lowered synchronously in accordance with the method of deducting the average online purchase price of relevant consumables.
Do a good job in regulating and controlling the whole process of dental implants. Medical security departments at all levels should focus on the medical services of a single conventional dental implant, and implement overall regulation and control in accordance with the medical services of "diagnosis and examination + implant placement + crown placement", and at present, public medical institutions have completed the whole process of implantation, and the overall medical services are generally higher than 4,500 yuan per area, and targeted measures should be taken to introduce a new range of no more than 4,500 yuan per piece,** The regulatory targets of the following public medical institutions are reduced accordingly with reference to the local policy of graded pricing of medical services. Encourage qualified areas to further adopt measures such as negotiation and consultation, cost supervision and review to reduce prices within the scope of regulation and control targets, and further expand the effect of regulation and control to benefit the masses. At present, the overall medical services** are generally lower than 4,500 yuan per pill, and the current low price is encouraged. Regions with developed economies and high labor costs are allowed to relax the regulation and control targets for medical services according to local conditions, and the relaxation ratio shall not exceed 20%; Encourage local medical institutions with a high success rate of oral implants to explore the overall regulation and control policies of targeted and relaxed oral implant medical services. Combined with the overall regulation and control requirements of medical services, as well as the results of centralized implant procurement and crown bidding, the provincial medical security departments have jointly formulated and disclosed the regulation and control objectives of the whole process of dental implants in their respective regions (including implants, crowns, and medical services), and taken targeted implementation measures.
Tongce mentioned: The number of dental implants in 2023H1 is 23,500, a year-on-year increase of +338%, and the growth rate of dental implants has increased significantly after the implementation of centralized procurement.
In terms of the number of dental implants, the growth rate is obvious: 338%, but the revenue is only 27% growth.
The company mentioned the unit price of dental implants.
At the same time, the company mentioned that it is easier to form a scale effect than a price increase. At present, the penetration rate of dental implants is low, and with the decline of **, the rapid increase in the total amount is still expected to form a higher growth in scale.
Judging from the data, it only brought a single-digit growth rate to the repair and comprehensive business, and there was no very significant growth.
Can TC Medical become China's Mayo?