Capital Airports Holding Company (CAH) and Peking University Third Hospital (PUTH) recently signed an Entrusted Operation Agreement, marking a major step forward in China’s healthcare reform. After a successful bid, senior partner Wang Yingbo, supported by counsel Deng Yong, was chosen to lead the matter. 

CAH guards the gateway to China. With business spread across various provinces and cities, the company provides high-quality services to hundreds of millions of passengers. The capital airport hospital will be organized under the CAH. PUTH, a leading healthcare service provider, is one of China’s national medical centers, and enjoys one of the highest patient volumes in Beijing. The deal is part of China’s efforts to reform SOEs and state-owned hospitals. Following preliminary negotiations, the two sides agreed to collaborate in the form of entrusted operation, and would each fund the resources and platform needed in the hope of setting an example for future healthcare reforms and improving healthcare service and staff quality in the region.  

The new hospital, renamed as Peking University Third Hospital (Capital Airport), will be positioned to provide a wide range of treatments. Apart from meeting common medical needs, the hospital will further invest in A&E, sports-related healthcare, obstetrics and gynecology, general surgery, and cardiovascular diseases. 

The team comprised of Wang Yingbo, Deng Yong, Mou Xin, and Sun Yizhou advised on the transaction structure, drafting of the agreement and hospital by-laws, employee management proposal, hospital planning and governance, and the negotiation itself. The same team is expect to continue to assist the client with asset inventory, proposal implementation and project delivery.