THE BUSINESS
OF HEALTH
THE BUSINESS
OF HEALTH Written by Nell Walker Produced by Mariana Lee
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We speak to Union Medical Healthcare about the services it provides and the ways in which it has dominated the market
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nion Medical Healthcare Ltd is the largest aesthetic medical service provider in Hong Kong. Founded in 2005 by CEO Mr. Eddy Tang, the company started with just one building housing a single doctor, and UMH boasts 29 locations with 44 doctors within 12 years. A medical-centric business from the beginning, UMH has been able to differentiate itself from beauty salons and spas thanks to the reliability inherent in having medical professionals on hand – professionals who are committed to the company’s values and protocols. UMH offers a wide range of aesthetic, medical, dental, chiropractic and health management services, having become number one for injections in Hong Kong and Hong Kong’s Top Service Brand of 2016. Importantly, the business was set up by a team with diversified backgrounds in business, beauty, and technology, which has contributed enormously to UMH’s success. Tang has over 13 years of experience in the beauty industry, CIO Mr. Ben Luk spent more than 12 years with Google, COO Mr. Gabriel Lee was with Cathay Pacific for 14 years, and Mr. Vam Cheng, General Manager of the Medical Department, has over 20 years of experience in the pharmaceutical
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900
The number of employees working for Union Medical Healthcare Group
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industry having worked in Allergan. This extensive familiarity with the necessary industries has ensured enormous growth and a bright future for UMH. Ms. Karen Chui is the director of Corporate Finance and Investor Relations at the company, with a decade of investment banking and healthcare experience behind her, and speaks to Business Review Asia about how this enviable level of expansion has been achieved. “Our strength is to offer medical service embedded with customer service,” she says. “We are the best in Hong Kong because we offered diversified services and the company is managed by a centralized system, while beauty salons are trying to enhance themselves through medical study or employment of medical practitioners, or clinic chains setup by one or two doctors fighting to extend
its medical service offerings – customer service is as important to us as medical safety. “We’re not just any other consumer company you can buy products from and go. Our customers rely on our professionalism, they like our service and our brand, and we will be expanding our medical expertise to continue to stand out from other players.” UMH sells treatment packages in advance, and it is the first in its sector to introduce the concept of a seven day cooling off period, whereby customers are eligible for a refund without explanation within seven days and there is no incentive for UMH staffs to attempt overselling or forcing customers to buy a particular package, because patients
“Our strength is to offer medical service embedded with customer service” – Ms. Karen Chui, Director of Corporate Finance
have an escape clause regardless, and that patients are comfortable and confident in their choice. It is a testament to this confidence that 83 percent of UMH’s key clients had unfinished packages in 2015 purchased new packages in 2016, which is an important KPI for the company to achieve because approximately 70 percent of revenue comes from these key clients in 2016. The minority of clients come to UMH through external referees, and thanks to its reputation as a high-quality service, very little advertising is required.
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Another rule UMH bookings. Our consultants has implemented which also follow up with clients adds to the quality of to make sure they’re happy its service is to treat all with us, and if the medical staff equally in terms of condition escalates, a their medical knowledge; doctor will be contacted. Annual even if theirs is extensive, We are to respond to revenue for UMH chooses to complaints in 48 hours, it the Union Medical assume they know is a gesture to show that Healthcare nothing so everybody we value and respect Group receives an equal two our clients. Most of our weeks of full-time customers are paying training spanning various modules. out of pocket, so they have high “We have to nurture them and ensure demands on the level of quality.” they know overselling isn’t what we Customers can even transfer to want,” Chui explains. “In terms of the another consultant or doctor if they are medical modules, our doctors take the unhappy with their service; according lead on training about medications, to Chui, customers trust the brand they side effects, injections, and there generally trust all of the staff: “Because is an annual emergency drill where we’re number one in the industry, we our staffs are trained on protocols in must do the best we can over time to case of emergency. We also enjoy retain that,” she says. “The Hong Kong the privileged to be trained by the government is issuing guidelines that pharmaceutical companies directly will allow them more control over the on medications and equipment.” use of medical aesthetic equipment “Unlike other service providers and of the doctors and delivery of where you get no personal service or services, but we have no issue we only can hardly book a place to enjoy the choose the best for our customers. services they paid for, we encouraged We welcome the type of management our clients to make advance treatment that means inappropriate service
Million HKD
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providers will be eliminated.” A large element of the everimproving relationship between UMH and customers is the betterment of its technology, specifically the iPads it uses for the centralisation of information. “It was challenging to roll out the iPads five years ago,” says Chui. “Standalone clinics might not be so efficient in business and operations. A lot of people in the industry agreed with our vision and admire our system and wanted it too.” While the change was easy enough for the behind-the-scenes technology experts, making it an integral part of the customer communication process and efficient management were trickier – but the advance in technology was necessary for UMH. “We believe systematic management is the key to a sustainable and scalable expansion. None of my senior management are doctors,” Chui explains, “However, we respect doctors and treat them as
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“Apart from the monetary interest, we provide an element to enhance themselves in their medical expertise, which they would then be able to deliver those new skills to the customers” – Ms. Karen Chui
partners, and we do want to make a difference in terms of how the industry can grow to be even healthier – offering professional medical services embedded with customer service. “ UMH intends to expand further and with far more aggression. Chui says that it is the strategy for UMH to achieve 15 percent annual growth for the next 3-5 years with the increase in service floor area together with the consolidation of the fragmented market in Hong Kong. The dental business began in late 2013 and has proved hugely successful, so the next step is to introduce even more choice and versatility to the company’s services. The PRC business only commenced two years ago, and UMH is looking forward to play a key role
to this underdeveloped market in the near future. Of course, the business’s most important relationships is with its medical professionals, and we work hard to retain their loyalty; with no doctors, there are no patients. “On top of basic training, our doctors receive additional training externally via our international medical counterparts, and this is part of the reasons we are able to retain them,” Chui concludes. “Apart from the monetary interest, we provide an element to enhance themselves in their medical expertise, which they would then be able to deliver those new skills to the customers.”
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Suite 7-9, L21, Langham Place Office Tower, 8 Argyle Street, Mong Kok, Kowloon, Hong Kong (852) 8203 0058 info@umhgp.com www.umhgp.com