ByteDance makes foray into health sector and acquires one of China’s biggest private hospital
Amcare, a private women and children hospital, known for its high end services, has been acquired by ByteDance, the owner of Douyin and TikTok. Amcare is now wholly owned by Xiaohe Health Hong Kong and Xiaohe Health Beijing, two ByteDance affiliates. The value of deal has not been disclosed.
Amcare operates right hospitals in China. In September 2021, Xiaohe Health Beijing made its first investment in Amcare and bought 17.6% of its shares, and later increased to 30%. In June 2022, Xiaohe Health Hong Kong increased its stake in Amcare by 41.49%. Currently, Xiaohe Hong Kong and Xiaohe Beijing each holds 69.53% and 30.47% of Amcare’s stakes respectively.
In recent years, ByteDance has been making frequent moves in the medical field. As early as August 2020, ByteDance completed acquisition of BaiKeMingYi (Encyclopedia of Medicine) for 500 million yuan, which signaled ByteDance has officially entered the sector.
In November 2021, ByteDance launched its health-related brand “Xiaohe Medical”, and released the patient-oriented telehealth Xiaohe APP, as well as a Xiaohe Doctor APP for medical practitioners.
In addition to providing telehealth services and medical content, ByteDance established the Xiaohe Medical Equipment Company last November. However, ByteDance’s determination in the field remains unclear, since medical-related business layout was not mentioned in the company’s structural reorganization in November last year.
Telehealth has been a fast-growing sector in China, especially since the COVID-19 pandemic and with the aid of technological developments in the 5G industry. Chinese tech giants such as JD.com and Alibaba have already gotten a head start in the race — JD Health now covers 100 cities in 12 provincial-level administrative regions nationwide, and Alibaba Health has become the second biggest player in China’s telehealth market and has reportedly committed to continue its efforts in the next 10-20 years.