Strategic partnerships, such as Shanghai’s Renji Hospital and the First Affiliated Hospital of Chongqing Municipality, should enhance capabilities and support margin gains as the China unit moves towards Ebitda-breakeven by 2026.
Jaiswal notes that between 2011 and 2021, the number of private hospitals there grew by 193% and bed capacity by 378%, with the share of hospitalisations rising from 9.7% to 18.6%. Private hospitals also tend to see longer average stays (from 8.5 to 10.5 days) due to a greater focus on rehabilitation and hospice care.
In Shanghai, spending per hospitalisation at private hospitals surged from US$1,944 in 2011 to US$7,928 in 2022, far exceeding public hospital spends. "These trends highlight the sector’s growing utilisation and its concentration in the highercost segment of China’s healthcare market," says Jaiswal, noting that RMG’s China operations include hospitals in Chongqing, Shanghai and Beijing.
The group’s new collaborations in China align with the country’s strategic opening of its private hospital sector, to boost foreign participation. Recent liberalisation allows wholly foreign-owned hospitals in certain cities, supporting innovative, asset-light models and attracting international investment. These efforts aim to boost medical tourism and enhance healthcare standards under national initiatives like Healthy China 2030 and the Belt and Road Initiative.
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In this context, RMG partnered with Renji Hospital in Mar 2025 and the First Affiliated Hospital of Chongqing Municipality in Jun 2025. The Chongqing partnership establishes a “Chongqing Model” of international medical cooperation, featuring shared resources, joint specialist services, and multi-level clinical and administrative collaboration
Meanwhile, the group's healthcare revenue has stabilised at a new run rate in 2HFY2024, as patient loads normalise and Covid-19-related contributions phase out, positioning annual revenue to exceed pre-pandemic levels.
"The hospital segment is set to benefit from the scaling up of the China unit, as post-Covid-19 restrictions ease, with margins expected to improve steadily as these operations move towards Ebitda-breakeven by 2026," says Jaiswal, adding that the group's healthcare and hospital segments provide resilience, with potential upside from earnings-accretive acquisitions.
As at 12.10pm, shares in RMG are trading at 96 cents.
