This case examines the privatization of hospitals in China. China Hospitals, Inc. has become the largest for-profit hospital company in China, purchasing government owned hospitals in Tier 2 cities. The case profiles CEO Frank Hu. To build his company, he has to navigate a tricky political landscape between local, provincial and the national governments. As the market evolves, he develops a hub and spoke strategy for this organization based on a hub at Puyang Hospital. The case places these activities in context with a rich appendix examining the evolving insurance system in China.