The celebrity medical and mechanical company with annual revenue of 10 billion yuan crashed! What are the reasons?

Medical Network May 31st news: The long-range telescope capital chain fracture incident has been buzzing. Why did the once medical Unicorn become so embarrassed overnight that it could not afford financial leasing? Rent, Can't afford agency fees, Can't pay salaries, Be chased by hospitals, agents, and employees, Being sued by a finance leasing company? What happened to the so-called innovative business model that was once deified? Can the model really stand the scrutiny?

The company (referring to the remote vision field, the same below) cooperates with the hospital to provide the hospital with an overall solution for the building of the department—providing equipment, expert support, and departmental operations. proxy Business or company salesman looking for, excavating customers with departmental cooperation intentions, customers with county-level people hospital , Chinese Medicine Hospital, Maternal and Child Health Hospital.

The specific contents of the departmental cooperation are as follows: The hospital purchases equipment from the company by means of financial leasing (The actual operation is: The financial leasing company leases the equipment to the company and then rents it to the hospital; the hospital pays the rent, and the ownership of the equipment is returned to the hospital after the lease expires);

The company pays the financial leasing security and handling fees to the finance leasing company for the hospital. The company provides medical technology support to the hospital through remote consultation, expert consultation, etc. The agency or company provides the department operation service. The company provides patients with the name of charity or poverty reduction. A certain amount of medical expenses to attract patients;

Benefits of departmental cooperation are divided by hospitals, experts, companies, and agents in proportion. Hospitals are divided into 50%, of which 25% are used to pay for financial leasing rents. The company provides guarantees for hospitals to pay for financial leasing rents, and 25% of the hospital's share is insufficient. When paying rent for financing leases, the company will make advance payments.

What a 'perfect' plan, multi-win-win, economic and social benefits:

For hospitals, equipment can be imported without prior investment, the introduction of expert support, the introduction of operational services, the introduction of charitable or poverty relief assistance, can both increase the income of the department and even the hospital, increase the skills of the medical staff in the department, and improve the department and even the hospital. Brand effect. The hospital does not seem to be at risk. Once the proceeds from the departmental cooperation are insufficient to repay the finance lease rent, the company can also help advance the rent. Without prior investment, equipment, experts and operations can be introduced and 'lose money'. , 'Zero risk', it is precisely for the hospital that it is precisely for these 'tempting conditions' to choose to cooperate with the company.

For companies, through the so-called business model innovation, they provide hospitals with integrated solutions that not only avoid the fierce competition faced by traditional methods of selling equipment, but also avoid the Bidding (The reason is that 'equipment ownership in the leasing company') not only sells the equipment through financial leasing in a high-priced manner (the report states: 'The unit price of most equipment is more than double the market price,' or even several times') to the hospital. Earn high profits, and get most of the equipment from the financing leasing company at one time, and can also earn certain operating income in the later department operations. Not only that, the company can also receive the quantity from the agents. Significant agency fees to supplement cash flow.

For financial leasing companies, it seems that there is no risk. Not only is the tenant a public hospital, it has a good reputation, and it also has a financial leasing margin (generally about 10% of the equipment) as a guarantee. At the same time, the company also provides hospitals with payment for rent. Guarantees and equipment repurchase guarantees, and finance lease companies pay the company not all of the equipment, but part of it, typically around 80%.

For agents, not only can they get a few commission points (usually 2%-5%), but they can also get a share of the revenue from departmental operations.

For experts, there should be no risk, only income.

For patients, not only can you go to the nearest hospital, but some will also receive a portion of medical expenses.

The plan was 'perfect' and the temptation was hard to resist. The company's business developed rapidly in just a few years. According to reports, as early as 2016, the remote viewing industry announced revenues of RMB 6 billion. , With a profit of 600 million yuan, it is planned to make a 10 billion yuan refund in 2018. It seems that the situation is excellent and the company is ready to go public.

However, the long-term prospects did not last long, and the cruel reality was still on schedule. The company's funding chain was broken overnight and the company was caught in an unprecedented crisis. The report said: 'The event has been fermented so far, involved more than 900 hospitals, 48 ​​financing Leasing companies, thousands of agents, more than 4,000 original/current employees or even property companies' interests. What exactly is this?

In fact, a seemingly 'perfect' business model has its own fatal flaw - the company's cash flow is negative! The cash flow is very easy to break! Let us roughly calculate the following table:

From the above calculations, we can clearly see that although this business model can have a profit after tax of about 10%, but in this business model, the cash flow is negative, especially when the company adopts a 3-year financial lease. The cash flow gap can be as high as 50% or more. The company must rely on the cash recovered from the new sales to maintain the company's cash flow. Once the new sales are blocked, the company's cash flow must be broken. In addition, the more new sales are done, the company needs The financial leasing rent advanced will also accumulate, and it will also accelerate the cash flow break. This is why this type of business model is suspected by the onlookers as a 'Ponzi scheme'. Even if the company uses a 5-year financial lease, cash flow It is still nearly -40%, which can only delay the time when the cash flow breaks.

The company's cash flow is broken and the game can no longer be played anymore. The risks of companies, hospitals, and financial leasing companies are also exposed:

The company does not have to say that if it fails to pay for the goods, it cannot afford a finance lease, it can't afford to pay agency fees, it can't pay salaries, it will face a financial leasing company's lawsuit, the hospital will discuss, the agents will ask for agency fees, and the employees will pay for salaries. Crisis, facing the test of life and death.

For hospitals, whether because of non-delivery or because delivery has already been made, but the operating income of the department cannot be achieved. The income from the operation of the department is insufficient to repay the financial leasing rent, and the company cannot advance the financial leasing rent because of the cash flow break. As the tenant is bound to be sued by the financial leasing company, the report said that after some hospitals were sued by the financial leasing company, the bank account was frozen and the salary of the medical staff could not be issued, seriously affecting the operation of the hospital. At the same time, in order to maintain the interests of the hospital itself, the hospital They also have to work hard to pursue the company’s responsibilities, and even have to resort to the law to make things worse. In addition, because of the high price without bidding purchase Equipment, Dean also bears great political and legal risks.

For a financial leasing company, if it can't receive the financing lease rent, it can only sue the hospital and the company. If the fund cannot be recovered after the prosecution, only the financial leasing security can be confiscated to recover the equipment. At this time, the financial leasing company The loss is very heavy. The forfeited margin only accounts for about 10% of the equipment price, because the price of the equipment is much higher than the market price. Assuming that it is 2-3 times of the market price, the actual value of the recovered equipment is only the equipment for the financing lease. 50% or even 30% of the price is old equipment, which can only be processed at a discount. Even if the company only paid about 80% of the equipment at the time, the direct loss of the financial leasing company would also be 20% of the equipment price. %about.

Then, why is there a situation where the equipment price is too high and the operating income of the department cannot be achieved?

The high price of equipment is the goal pursued by companies, agents, and clerk. The company, on the one hand, can make large sales and increase profits. On the other hand, it is also the most important, that is, it can increase cash receipts from financial leasing companies. , Increase cash flow; For agents, increase the amount of commission; For salesmen, increase rewards.

Why do hospitals accept such high equipment prices? The main reason is that hospitals have the fortunate feeling that companies have to provide advance financing lease rental guarantees. Of course, companies also say that high equipment prices are due to the inclusion of organizational experts. The costs associated with the organization's operations, etc., do not know that these costs should theoretically be compensated by the income from the division of revenue from cooperation in the department, and should not be added to the equipment price. In fact, as the lessee of the finance lease, the higher the equipment price, The greater the amount of monthly rental rent for hospitals is, the greater the pressure is, and the greater the risk of repayment of lease payments for financing leases.

Originally, it was hoped that the financial lease rental would be paid through the operating income of the department and a closed loop would be achieved to achieve a win-win situation. However, due to the high equipment price, the operation of the department could not be completed, and it would be difficult for the income of the hospital department's operating department to pay for the lease rental. This business model eventually turned into a profit. The banner of the overall solution disguisedly sold equipment at a high price.

The operating revenue of the hospital's departments is not only related to the size of the hospital, geographical location, population coverage, local economic conditions, the number of medical personnel in the department, the technical strength of the department, the status of the department equipment, the ability of the department management, etc., but also related to the department's operating capabilities. To put it plainly, it is the ability of departments to pull patients. The hospital that cooperates with the company is the county-level people’s hospital. Traditional Chinese medicine Hospitals, Maternal and Child Health Hospitals, etc., county-level Chinese hospitals, and Maternal and Child Health Care Institutes have very weak capabilities in all aspects. The departments that cooperate with the company are often the weaker departments of these weaker hospitals. They have a weak foundation, and lack relevant medical staff and Technical power, therefore, even if equipment is purchased through financial leasing, experts are supported by remote consultations, expert consultations, etc., and many services are still difficult to develop. In addition, the training of a department staff, technical strength The formation of word-of-mouth requires a long process, ranging from one year and two years to four years and five years, and it is impossible to achieve immediate results. In addition, the operation of the department is a very professional matter, owing to the lack of operating experience. The operations of the agents or the company's operating personnel obviously cannot achieve the expected results. The foundation is thin, the efficiency is slow, and the operation is not professional. The cooperative department will naturally not be faster and obtain better returns. The report said: 'The reality is, The profits generated by the actual operating projects of most local hospitals are far from the number of equipment payments.'

In this business model, in addition to the high equipment prices, the operating income of the department cannot do these two fatal sources of risk. In actual operation, other factors also increase the risk of cooperation execution:

1. Careful choice of cooperative hospital, affecting the development of departmental business and the payment of financing lease rent.

(1) The annual income of the hospital is not high enough. The debt ratio of the hospital before or after the cooperation is too high and the repayment ability is poor.

According to the report, a county-level Chinese medicine hospital in Luohe City, Henan Province, signed a contract for 3.89 million ear nose and throat diseases and 10.73 million tumor projects. The annual income of a county-level hospital in Henan Province is only 30-50 million yuan, and the assets are only 1,000-. RMB 30 million means that only the cooperation of these two departments will increase the debt ratio of the hospital by more than 50%. The county's county hospital of traditional Chinese medicine in Shangrao City, Jiangxi Province, has an annual gross profit of only about 2 million. If the company does not advance, it cannot be stipulated in the contract. Within 3 years, more than 13 million principals and interest have been paid;

(2) The location of the hospital is relatively partial and it is difficult to attract patients to seek treatment;

(3) The direction of the basic and cooperative departments of the hospital itself is misaligned. For example, a linear accelerator for cancer treatment in a county hospital is generally inappropriate;

(4) The president of the hospital changes in the short term, the new director may not support the project to continue cooperation, leading to aborted cooperation.

2. Some equipment involved in the cooperation, such as the linear accelerator for oncology treatment equipment, the required configuration certificate is more difficult to be approved. The equipment room requires a long construction period. If there is no configuration certificate and the equipment room is not built, the department service cannot be completed. To start, the business cannot be developed, but the financing lease rent is paid periodically. It can only be paid by the company, which increases the company's cash flow pressure.

3, companies, agents and business staff, regardless of hospital repayment ability, a hospital to do multiple projects. The report said, 'especially in 2017, many hospitals expand two or three sections, or even five or six, medical equipment The amount of financing leases rose sharply. A hospital in Xinjiang reached 110 million yuan. The more departments cooperated, the more hospitals pay rent, the more pressure the company pays for rent.

In short, this seemingly 'perfect' business model not only has hidden fatal flaws, but also has many risks in the actual operation, so the business model is not sustainable.

In the face of 'innovation' and 'perfection', we should not be blindly obeyed. We must look at the essence through gorgeous appearances. Otherwise, we will continue to suffer endless damage.