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How Internet is shaping healthcare in China?


COLDSKY.CN – Nobody wants to get sick, but if you do, the most common solution is still going to hospital and seek treatment. The way of care is delivered will change, fundamentally, according to Tmtpost.(https://www.tmtpost.com/4283000.html)

According to Chen Jinxiong, head of EMR(electronic medical record)  Committee of China Medical Informatics Association, the deadly COVID-19 outbreak will only accelerate the transformation of healthcare to be data-driven, online, smart, mobile and borderless.

The telemedicine in the Internet era will allow a large number of patients with common, frequently-occurring diseases to search for a solution online first, instead of visiting a hospital. But healthcare will still take the form of online and offline combination as tests and surgeries are mainly possible in hospitals.  

The emergence of wearable devices and portable digital gadgets means some patients no longer need to be hospitalized and can stay at home while receiving the same medical monitoring service. 

For doctors, they might only work for one hospital in the past, but now they can build online reputation and work for many hospitals at the same time. (Does this pose new management challenge for hospital?)

In summary, Chen said a data-driven healthcare is more patient and health orientated, meaning a single patient can have access to abundant medical resources. In comparison with Fee For Service approach, the new paradigm of Value-Based Service will be the trend. 

According to Siemens Healthineers, VBS assesses the entire cost of the patient’s passage through the system. Rewards to physicians and hospitals are based on costs, quality and outcomes. (https://sponsored.bloomberg.com/news/sponsors/features/siemens-healthineers/what_is_value_based_healthcare/?adv=19413&prx_t=2SMEAtjsvAFEANA)

Under this background, hospitals will be in need of new healthcare information system that empowers strong data collection and mining. 

The online healthcare current are in three types – B(Hospital) to C(pharmaceutical company), B (Pharmaceutical company) to C (patients) and C(doctors) to C (patients). The C2C market leaders include Chunyuyisheng.com and haodf.com, which both help patients link with doctors. 

The main business models in the online healthcare sector are:

  1. Diagnosis and treatment expense 
  2. Drug expense
  3. Patient acquiring 
  4. Healthcare online store
  5. Health insurance
  6. VIP value-added service
  7. Data service(drug research, disease monitoring and AI)
  8. Software and service fee, health program software, software package
  9. Hospital and bank cooperation for digital payment
  10. Healthcare program 
  11. Medial wearable devices.

As an example, Ping An Good Doctor online healthcare platform reported revenue of 1.112 billion yuan and 2.902 billion yuan in consumer healthcare and healthcare mall, up 22.9 percent and 55.7 percent year on year, respectively. While the other key business segment of health management and wellness interaction achieved revenue of 193 million yuan, up 22.7 percent.

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