Concord Medical Services Holdings Limited ("CMS" or "the Company") operates China's largest network in terms of revenue and total number of centers in operation in 2008. Since its inception CMS has been committed to building an extensive network of radiotherapy and diagnostic imaging centers in China and employing state-of-the art medical technology to sustain lives and reduce sufferings. Today, the Company operates a network of more than 80 centers spanning more than 35 cities and 20 provinces and administrative regions in China.
CMS partners with hospitals to build radiotherapy and diagnostic imaging centers. Each center is typically equipped with a primary unit of advanced radiotherapy and diagnostic imaging equipment, such as linear accelerators, head gamma knife systems, body gamma knife systems, positron emission tomography-computed tomography (PET-CT) scanners or magnetic resonance imaging (MRI) scanners. The Company provides clinical support services to doctors working in the centers in its network, such as organizing joint diagnosis among doctors in its network and clinical research, while its hospital partners are responsible for the centers' clinical activities, doctors' medical decisions and the employment of the doctors.
To further enhance its reputation and to employ high quality doctors, the Company plans to establish and operate specialty cancer hospitals in China. Its first specialty cancer hospital, the Chang'an CMS International Cancer Center, in Xi'an, Shaanxi Province, is expected to be operational in early 2010. The Company is also in the process of establishing the Beijing Proton Medical Center, which is expected to commence operations in 2012.
Cancer was the leading cause of death in China in 2008, yet there is a relatively low penetration rate of radiotherapy and diagnostic imaging equipment compared to developed countries. According to Frost & Sullivan, the radiotherapy and diagnostic imaging market in China is expected to grow at a CAGR of 22.4% between 2008 and 2015. Growth drivers include increasing cancer rates in China, growing awareness among physicians and patients and hospitals' adoption of advanced radiotherapy and diagnostic imaging technologies. Furthermore, rising household disposable income and government healthcare expenditures will increase the affordability of such cancer treatment and diagnosis technologies.
With its leading network and its experience and expertise, the Company is uniquely positioned to address the underserved radiotherapy and diagnostic imaging services market in China.