Guangdong Kanghua Healthcare Co., Ltd.
Climate Impact & Sustainability Data (2013-12 to 2015-12 and 2015-04 to 2016-04)
Reporting Period: 2013-12 to 2015-12 and 2015-04 to 2016-04
Environmental Metrics
Social Achievements
- Enrolled Kanghua Hospital and Renkang Hospital in medical liability insurance programs in February 2016.
Governance Achievements
- Implemented robust internal controls and risk management measures specifically addressing bribery and corruption risks; undergo annual inspections from relevant regulatory authorities every three years, which include their anti-bribery and corruption status.
Climate Goals & Targets
Environmental Challenges
- Heavy regulation in the healthcare industry.
- Changes in PRC's regulatory regime for the healthcare industry.
- Revenue historically dependent on operations in Guangdong Province.
- Potential for ineffective management of third-party hospitals.
- Grade A Class III rating of Kanghua Hospital is subject to review.
- Risks of medical disputes.
- Shortage of healthcare professionals and increasing costs to attract them.
- Fluctuations in costs of pharmaceuticals and medical consumables.
- Potential failure to maintain relationships with commercial insurance providers.
- Competition from other hospitals and healthcare providers.
- Inability to protect name and trademarks.
- Risks of communicable infections or diseases at hospitals.
- Dependence on key personnel.
- Potential failure to deal with clinical and radioactive wastes properly.
- Inherent health and safety risks.
- Potential failure to comply with anti-corruption laws.
- Risks associated with protecting patients' personal information.
- Potential for information system failures.
- Limited control over quality of supplies.
- Past performance not necessarily indicative of future results.
- Economic, political, and social developments in the PRC.
- Uncertainties with respect to the PRC legal system.
- Difficulties in effecting service of legal process and enforcing judgments.
- Governmental control of currency conversion.
- Fluctuations in exchange rates.
- Potential for inadequate or untimely financing.
- Potential for fluctuations in financial results from new healthcare facilities.
- Potential for inability to manage third-party hospitals effectively.
- Potential for inability to execute growth strategy or manage growth effectively.
- Potential for unknown or contingent liabilities in acquired businesses.
Mitigation Strategies
- Satisfying medical liability claims using financial resources (prior to February 2016).
- Enhancing wages, performance bonuses, and benefits to recruit and retain healthcare professionals.
- Carrying out market research to ensure competitive pricing.
- Ramping up high-margin special services.
- Implementing robust internal controls and risk management measures to address bribery and corruption risks.
- Maintaining medical liability insurance for Kanghua Hospital and Renkang Hospital.
- Developing and implementing clinical, educational, and other governance procedures to prevent incidents.
- Seeking additional financing as needed.
- Continuously assessing and upgrading medical equipment.
- Expanding into new geographical locations.