Recently, a suspension notice from the Xuzhou Health Commission has caused ripples in the regional medical community - Peixian Jiahua Hospital applied to suspend operations for four months starting from September 1, 2025. This Grade II Class A comprehensive medical institution, which once carried the banner of epidemic prevention and was designated by the government as a "yellow code hospital," has suddenly pressed the "pause button." What caused this dramatic turn from its former glory to current predicament, and what profound lessons does this offer to private hospital managers?

**01 From Township Health Center to Grade II Class A: A Private Hospital's "Golden Decade"**

Jiahua Hospital's predecessor was Haozhai Township Health Center, which was restructured as a private hospital in 2006. Throughout its journey, it became a shining star in regional social healthcare investment: it was affiliated with "Peixian Campus of Xuzhou Third People's Hospital," gaining recognition for its capabilities; in 2017, it achieved 180,000 outpatient visits, 12,000 inpatient admissions, and business revenue exceeding 100 million yuan; in 2021, it relocated entirely to a new campus covering 74,000 square meters with 600 beds.

During the most severe period of the pandemic, Jiahua Hospital was designated by Peixian's epidemic prevention and control headquarters as a "yellow code hospital," specifically receiving people from controlled areas and those with red and yellow health codes, becoming crucial medical support during that special period.

Yet this hospital with history, performance, and responsibility has reached its current situation - why?

**02 Rapid Expansion and Massive Debt: "Suspension" Reflects Private Hospitals' Survival Challenges**

On the surface, the four-month suspension appears to be a "halftime break," but closer examination reveals that the crisis was long in the making: the hospital is entangled in multiple legal disputes with total enforcement amounts reaching 12.79 million yuan; just two months after launching the new campus, it immediately embarked on a "Phase II Medical-Care Integration Project," planning to build another 90,000 square meters with 780 beds; this expansion coincided with three years of pandemic when the industry generally faced tight cash flow, making ambitious steps potentially heavy burdens.

One employee's message was particularly poignant: "Ending a ten-year career, despite countless reluctances, it's time to bid farewell."

**03 Policy Support and Public Hospital Expansion: How Can Private Hospitals Defend Their Territory?**

Jiahua Hospital's predicament is not an isolated case. Just two months before its new campus began operations, Peixian People's Hospital's new campus - located only 5 kilometers away - officially opened, covering 150 acres, built to tertiary hospital standards, with 2,000 designed beds.

One is a well-established public tertiary hospital, the other a striving private Grade II Class A facility. Competing in the same field with similar locations, the competitive dynamics are clear.

This represents just one corner of the regional medical landscape. According to Xuzhou Health Commission's planning: by 2025, the city will have 27 tertiary hospitals; by 2030, the number of Grade III Class A hospitals will reach 18; by 2035, full coverage of Grade III Class A hospitals will be achieved at the county level.

Policy-driven expansion and upgrading of public hospitals benefits overall medical standards, but it also means the window of opportunity for private hospitals is narrowing.

**04 After Restart: How Can Private Hospitals Chart a Differentiated, Sustainable Path?**

The four-month suspension could be an endpoint or a starting point for reorganization. We believe private hospitals must more clearly assess the situation and more cautiously plan their future, strengthening their foundation in at least three areas:

Control expansion pace and prioritize cash flow as a lifeline Identify differentiated positioning to avoid direct competition with public hospitals Deepen service, brand, and efficiency development to truly build "private advantages"

Jiahua Hospital's "pause" serves as a wake-up call for all private hospital managers. It once achieved glory, struggled, and contributed, but under the dual pressures of macroeconomic environment and internal operations, it still faces survival challenges.

We hope it can return reinvigorated, and more importantly, we hope every industry peer can reflect on its journey: Are our strategies clear? Are our steps steady? Have we truly found a sustainable path?