News Releases 2017

May 23, 2017

Establishment of Rehabilitation Service Company In Vladivostok in the Russian Federation

JGC Corporation (JGC), Yokohama, Japan, and Hokuto Social Medical Corporation (Hokuto), Obihiro, Japan, announced today that they have reached an agreement to form a new company, "JGC Hokuto Healthcare Service, LLC", with the purpose of engaging in the rehabilitation service business in Vladivostok city in the Far East of the Russian Federation.

After entering into discussions in early 2016 on the subject of realizing such a business, JGC and Hokuto participated in the Eastern Economic Forum in September of 2016 and, at the Japan-Russia Economic Meeting held in Tokyo in December of the same year, a memorandum of understanding calling for cooperation in such a venture was concluded with the Russian parties concerned while at the same time receiving indirect support of the Japanese government under the Healthcare Policy. Further, in the period from November 2016 to March of this year, together with rehabilitation experts from Hokuto, a study was made of the incidence of cases in Vladivostok along with lectures introducing Japanese rehabilitation techniques and these have led to the decision to create this new business company.

At present, in the Russian Far East, patients operated on for cerebral apoplexy, external injuries and similar conditions undergo two weeks of rehabilitation during the acute stage of their recovery, but this regarded as insufficient and almost no rehabilitation treatment is carried out during the later stages. Another factor affecting the situation is the steadily increasing average life-span of Russian citizens which is likely to see a concurrent increase in the incidence of strokes and of accidents of various types, making the need for access to effective rehabilitative treatment even more important.

In these circumstances, access to the type of Japanese rehabilitation therapy provided by Hokuto is seen as making possible improvements in ADL (Activities of Daily Life) and QOL (Quality of Life) for Russian patients.

In addition, the activities of the newly-formed company will include bringing Russian therapists (initially, 5 persons are to be employed) to Japan where they will undergo training at Hokuto‘s Rehabilitation Center in Obihiro and related facilities. Through such activities, we feel sure that we can contribute not only to growth in the number of Russian therapists but also building up their level of skill which will lead to improvements in the standard of therapeutic rehabilitation in that country.

Outline of the New Company
Company Name JGC Hokuto Healthcare Service, LLC
Location Vladivostok City, Maritime Province, Russian Federation
Capital 150 million Rubles (approx. 300 Million Yen)
Date of Incorporation June, 2017
Investors JGC 90 %, Hokuto 10 %
President To be selected
Date of Facility Opening Early 2018 (Planned)

For Reference

JGC

For more than 30 years, JGC has engaged in over 250 projects involving hospital construction and related consulting services within Japan. From 2008, the company has been entrusted by the Tokyo city government with the construction and operation of the Tokyo Metropolitan Matsuzawa Hospital under a PFI scheme. In addition, since 2013, JGC has been part of a hospital business in Cambodia. The company intends to apply the experience and knowledge gained from these ventures to provide support for the planning and operation of the new facility.

JGC‘s other activities in Russia include its present involvement with its partners in the construction of a LNG plant located on the Yamal Peninsula in the northern part of the country. Also, JGC have established JGC Evergreen which is engaged in the production of tomatoes, cucumbers and other vegetables at its facility in Khabarovsk.

Hokuto

In 1993, focused primarily on neurosurgery, the Hokuto Hospital was opened in the city of Obihiro, Hokkaido. It is a social medical institution providing seamless care from preventive medicine to the highest level of advanced care through to home care and nursing care in the eastern Hokkaido/Tokachi area. Since 2016, Hokuto started to support the operation of the Kumagaya General Hospital in the Saitama Northern Medical area, in order to establish the model of the Tokachi area system which Hokuto has been worked.

Hokuto has 621 beds in total, including in Hokuto hospital (267 beds) which is responsible for acute medical care and high level advanced medicine such as nuclear medicine and genetic diagnostics, Tokachi Rehabilitation Center (199 beds) for recovery rehabilitation service and other facilities for medical and elderly care.

In 2013, Hokuto established the Hokuto Diagnostic Imaging Center in Vladivostok of Russia to improve of diagnostic skills by local medical staff and spread the culture of second preventive medical (medical examination) in the public. The number of local residents coming to Hokuto Diagnostics Imaging Center is increasing every year and Hokuto is working to spread Japanese medicine in the public of this region under the brand of Hokuto.