Chindex, a US NASDAQ listed company founded in 1981, is the majority owner of Beijing United Family Hospital and Shanghai United Family Hospital. Ms. Roberta Lipson is the CEO and President of Chindex. Since Ms. Lipson co-founded Chindex in 1981, the company has expanded from its core business of medical equipment sales and marketing to medical consumables, healthcare related consumer products and, most recently, healthcare delivery.

The total project cost is estimated at $19.5 million. The proposed IFC investment is a $8 million equivalent senior debt financing for IFC’s own account.

8.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.0
Equity

* These investment figures are indicative

The location of the project is in Beijing and Shanghai. The Beijing hospital and downtown clinic are located at Chaoyang district of Beijing and the Shanghai hospital is located at Changning district of Shanghai.

The project will have a strong development impact in the following areas:

- expand access to international standard services in Beijing, Shanghai and neighboring areas, to meet increasing demand for high quality healthcare services which is not yet available elsewhere in China;
- the project is expected to serve as a model for the provision of private health services in China, which is still in the early stage of opening its heath sector to private practitioners and foreign investment;
- demonstrate best administrative and patient care practices throughout the medical community, and provide skills transfer and capacity building among local population through local hiring and nurse training;
- foster an environment for encouraging skilled locals to return to China; and
- increase charity services which are currently provided by the hospital.

Through its investment in UFH, IFC will act as a provider of long-term financing, which is currently difficult to obtain for private hospitals in China. In addition, IFC has encouraged and will assist the hospital in setting-up a medical training program (available to UFH staff as well as non-UFH staff). Such a program is expected to concentrate on hospital administration and nurse training -- educational areas of substantial need in China.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor and discussions with the sponsor. The following potential environment, health and safety and social impacts of the project were analyzed: site selection and land acquisition; management systems for environmental, health and safety and social issues; air emissions from on-site incinerators, boilers and/or generators; resource use and refrigerant selection; management and disposal of solid, hazardous, medical and radioactive wastes; fire protection and life safety; labor and workplace conditions; and corporate social responsibility initiatives. Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines.
Location of environmental documents In locally affected community
The ERS will be available upon request, at Beijing United Family Hospital in Beijing:
2 Jiangtai Lu
Chaoyang District
Beijing 100016 P.R.C.

It will also be published on the company’s website (www.unitedfamilyhospitals.com). An advertisement in a local newspaper will inform the local community of the availability of the ERS.