At present, the public hospitals in our country are facing the major system reforms and strategies adjustment, and the national investments will exist from some of public hospitals and combine medical resources, where the hospitals established by enterprises and some medium and small-size public hospitals take actions at the utmost first, which will no doubt bring a good chance for the investors intending to developing medical industry.

Where is the direction of development for these public hospitals? Which questions having influences on strategies choice should be resolved in the reform? Which knowledge needs to be unified? And now we will give a brief introductions and comments about the successful converting of Beijing Jiangong Hospital.

At earlier 3 year before (that refers to 2000), the Beijing Construction Engineering Co. Ltd. (Group) firstly separates the major businesses and accessorial businesses to respond to the government policies, and peel off the hospital directly under the Group located in Xuanwu district----Beijing Construction Workers Hospital, and invited public bidding for inducing nongovernmental capitals, cooperated with investors with management experiences and capitals for jointly development.

The Phoenix Hospital Group established in 1988 was one of the largest nongovernmental hospital industry groups then and there. And erenow, the Group has successfully purchased Dalian Steel Factory Staff Hospital (Renamed as Dalian New Century Hospital), and set up a whole set of " management mode of the Phoenix Hospital" applicable to the requirements of the development of market economics, and now, they intend to exploit the Beijing market.

The Phoenix Hospital Group grasps the better chance and makes a well-considered practical programs for converting of stock system, pays attentions on the maintaining values of state properties and how to maintain the benefits of two parties and the long-term development of the Hospital focused by the government and enterprises, thus the Group win the bid, and the two parties signed an agreement to convert the stock system of the Hospital based on 34% for the Beijing Construction Engineering Co. Ltd.(Group) while 66% for the Phoenix Hospital Group, after that, the Hospital became the largest profitable and hospital and profitable medical insurance designated hospitals.

A board of directors has been established to choose & employ and assign the leaders, properly make arrangements of all the staffs of the original hospital, and give repeat trainings and communications to dismiss the considerations of staffs, reconstruct, rebuild the hospital based on a long-term development views, give the staffs hopes, create expansive spaces in the welfare and business development as well as promotion, thus to achieve the final success of the converting reform. The Hospital formally was renamed as Beijing Jiangong Hospital, which paves the first path in the reforms of Beijing medical organizations.

After having been converting systems and re-opened, Beijing Jiangong Hospital takes on a new look. As the leader of nongovernmental hospital, Beijing Jiangong Hospital takes efforts to create brands and put forward individuation services concepts, and positioning itself as one of elaborate hospital, that is to say that the hospital will provide medical technologies services of the third class hospital, adopt the charging standards of the second class hospital and face to patients participating in medical insurance and commons.

With Repackaging the Hospital, re-training the staffs, strengthening servicing awareness and making out reasonable charging standards, the Phoenix presents servicing advantages of nongovernmental hospital in the competition with public hospitals. After shorter 3 years, the turnovers of Jiangong Hospital achieves 84 million Yuan RMB from 30 million with 3 times of original turnovers. In view of the developing trends, there are much more spaces for developing.

It has approved that the system converting of Beijing Jiangong Hospital is a successful one, which stands on the reforms and advancing with the times to develop for complying with the developments of the economic markets and acting as "bellwether" in the standardized development.

Comments of contributing experts: the medical industry in our country is now in the developing stage of reforming and adjusting. On the one hand, the problems rising from the system of medical organizations, management and talents seriously restrict the developments of organizations; at other hand, the bottleneck of the capitals also restricts the reforming of the medical organizations, which face many problems, such as system reform, perfecting management and investments & financing and purchasing for combination, thus more powerful requirements has come into being.

The successful experiences of Phoenix Hospital firstly are based on a strategic view, and prefer to choosing the object units needed to be reformed----Hospitals Under Control of Enterprises (Beijing Jiangong Hospital), which is a non-operating assets peeling off and also is a successful experience of system converting of enterprises, and can be directly applied to the system converting, that is to start from the changes of structures of capitals based on confined objectives and modes, and make further changes of organizational structures, operation management modes, make optimization combination with various resources, make proper arrangements of original staffs, position accurately in the market, set up the new servicing brands and strengthen the competitive power applicable for the economic conditions of markets, and make the medical industry blooming and active, thus the medical industry can make quick development and growth on the path of markets so as to promote the process of the industrialization of Chinese medical industry.

----Beijing Zhengtai Law Firm, Lawyer Yaode He