Aier Eye Hospital Group: Value-Based Health Care

Aier Eye Hospital Group Co. Ltd. (Aier) grew from a local Chinese provider into a global ophthalmology hospital chain, supported by a split leadership structure separating the hospital chief executive officer from the medical president, a Partner Incentive Program, and a plan-do-study-act style of management. The case reviewed the management team and operating model of Aier and introduced three management approaches: value-based health care (VBHC), time-driven activity-based costing, and the balanced scorecard. By 2026, Chen Bang, Aier’s founder, must decide how to institutionalize a VBHC model to shift Aier from scale-driven growth to high-quality, innovation-driven development while continuing to expand access to eye care and deliver attractive returns to shareholders.