Details of the transaction were not disclosed.
China’s government has pushed for more private investment in its public hospitals to reduce the burden on creaking public hospitals and trim a healthcare bill set to hit $1.3 trillion by 2020. Beijing New Journey Cancer Hospital is one of such hospitals.
Peking University Cancer Hospital, one of the top such facilities in China, had played a major role in establishment of the hospital in 2011, said a company statement.
The number of cancer cases in China has risen at a fast rate over the last two decades. Private players have entered the sector, expecting further opening up of the healthcare sector.
In January, China’s Wanda Group announced a 15 billion yuan ($2.3 billion) investment in hospital developments around the country, to tap into a reform drive to give private firms a larger role in healthcare.
CITIC PE, which has $12.3 billion under management across six funds, said that it will add to the existing resources and leadership of Beijing New Journey Cancer Hospital.
In China, state-run hospitals dominate the market, but private facilities have mushroomed in the last few years after the government relaxed rules for private investment.
Firms like U.S.-based Chinaco Healthcare, Germany’s Artemed Group, China’s Shanghai Fosun Pharmaceutical Group Co, investment firm TPG Capital Management LP and property developers China Vanke Co and Evergrande Real Estate Group have all entered the sector.
However, many doctors still prefer to serve in the public sector, and there has been a push-back from state-owned hospitals to slow down healthcare reforms.