Chengyi Health Files IPO Prospectus to Advance 'Borderless Healthcare' and Enable Differentiated Services for Private Medical Institutions

With the implementation of healthcare reforms and centralized procurement policies, alongside advancements in information technology and the internet, the Chinese government has expressed its policy-level expectation for interoperability and mutual recognition of medical data and results across hospitals, as well as for physician mobility to facilitate tiered diagnosis and treatment. In response, Chengyi Health has proposed the concept of “Borderless Healthcare,” aiming to break down the traditional “information silos” of hospitals through its established digital network, identify differentiated service offerings, and integrate private healthcare providers and home-based medical services into the broader healthcare ecosystem.

Xie Qi, Founder of Chengyi HealthIt holds that: “Boundaryless precision medicine refers to enhancing the precision triage process through online platforms and medical service companies, based on the concept of borderless healthcare. By performing more work before and after consultations, it assists medical institutions at all levels in providing precise services to patients. This is what Orange One considers the most suitable model for medical services.”

The strategy of Orange One Health is,Facilitate the complementary development of private healthcare institutions and public hospitals by pursuing specialization, identifying and cultivating high-end, differentiated services that are in strong demand by patients but are either unwillingly or temporarily unable to be provided by public hospitals. Enable doctors and patients to choose hospitals based on disease-specific needs, rather than crudely directing patients to a particular category of hospitals.

On January 1, 2021, the centralized procurement of coronary stents was implemented, with the average price dropping from approximately RMB 13,000 to RMB 700. The prevailing analytical logic suggested that the significant price reduction of winning bid products would highlight the pricing advantage of public hospitals, leading to patient attrition at private medical institutions. However, the complex implications triggered by public policy do not manifest within just a few days. Under the centralized procurement regime, pharmaceutical and medical device manufacturers, physicians, insurance companies, and even patients have all embarked on an unplanned trajectory.

Socially Run Healthcare Becomes a Development Opportunity for Non-Centralized Procurement Products.Following the implementation of centralized volume-based procurement, domestically produced stents rapidly captured market share in major public hospitals, while the utilization rates of imported stents and high-end domestic models plummeted. When volume quotas were not met, some Grade A tertiary hospitals opted to temporarily suspend the use of non-procured products. This forced patients with specific needs to seek alternative channels, making private hospitals an attractive option for this patient population.

As an important component of China’s healthcare system, private medical institutions must identify a strategic breakthrough to truly fulfill the national expectation of serving as a “key component and significant force.” Developing specialized disciplines with competitive advantages and pursuing complementary growth alongside public hospitals may represent a viable pathway. Volume-based procurement can create development opportunities for private medical institutions and, to some extent, cultivate consumers’ willingness to pay for more diversified services.

Commercial insurance has become a key to addressing payment issues for private healthcare providers.Currently, private healthcare institutions in China are not only grappling with challenges such as weak discipline construction and insufficient talent pools, but also facing the core issue of payment responsibility. In 2019, the “Opinions on Promoting the Sustainable, Healthy, and Standardized Development of Private Healthcare,” jointly issued by ten government ministries and commissions, explicitly proposed supporting the development of commercial health insurance. It encouraged commercial insurance providers to collaborate with private healthcare institutions in developing diversified and personalized health insurance products that complement basic medical insurance. “Once private hospitals establish differentiated positioning, referring insured clients seeking mid-to-high-end coverage to a select group of trustworthy private hospitals becomes a highly viable option,” remarked Xie Qi.

Doctors' willingness to change jobs is also increasing.Since the launch of the new healthcare reform, multi-site practice for physicians has been permitted at the national level. From the physicians’ perspective, the drive to legitimize income (“sunshine” compensation) and to realize their professional value has also led to high levels of participation in multi-site practice.

This is the background behind Chengyi Health’s introduction of the “Borderless Healthcare” concept. Chengyi Health’s service logic is to enter through specialties not included in centralized volume-based procurement, helping pharmaceutical and medical device manufacturers identify private hospitals with strengths in those disciplines; link patients with hospitals through digital tools; and collaborate with insurance companies to alleviate patients’ concerns about medical payment.

“The purpose of our integrated medical services for pharmaceuticals, medical devices, and insurance is to achieve long-term patient management through home-based healthcare, match patients with hospitals that have disciplinary advantages for treatment, and collaborate with pharmaceutical and insurance companies to reduce the financial burden of home-based medical services on patients,” said Xie Qi.

Since its inception, Orange One Health has remained dedicated to strengthening its core competencies. In Jie Qi’s view, “independent customer acquisition and integration capabilities, along with the ability to coordinate services” form the foundation that enables Orange One Health to outperform other medical service companies in the market.

The founding team’s vision, inner perseverance, and ideals are the key sources of Chengyi Health’s capabilities.

Co-founder Jie Qi previously served as Chief of the Information Section at Beijing’s 12320 Health Hotline under the Beijing Municipal Health Commission, and as COO of Yihu Daojia. He currently holds concurrent positions as a Standing Committee Member and Deputy Secretary-General of the Health Talent Branch of the Chinese Non-Public Medical Institutions Association, and as Vice President of the Beijing Community Health Promotion Association. His 13 years of experience in healthcare informatization and handling consultation and complaints enable him to accurately grasp both user and government needs. Co-founder Xu Hao completed his undergraduate and master’s studies at Peking University and Columbia University, respectively, and conducted in-depth research on family health and medical service systems in the United States and Canada. He previously built a consumer healthcare service team and sales network comprising thousands of members. In addition to its comprehensive internal team, Chengyi Health has established deep strategic partnerships with leading internet healthcare companies, including Baidu Health, Xiaohe Doctor, and Ali Health.

By integrating medical service resources,Chengyi Health has established four major resource networks (a multi-site practice physician network, a private healthcare provider network, a home nurse network, and a family doctor network). Leveraging its proprietary digital tools, the company provides digital services to pharmaceutical and medical device manufacturers as well as insurance providers, while delivering comprehensive medical care to patients ranging from outpatient visits to rehabilitation.

Doctor users are the core resource of Chengyi Health.In its physician empowerment initiatives, Orange One Health has partnered with Baidu Health, Alibaba Health, and others to facilitate multi-site practice arrangements for over 1,000 physicians across nearly 200 private hospitals. To help physicians build their personal brands through popular science short videos, Orange One Health has launched a service for developing physicians’ internet-based intellectual property (IP) on ByteDance platforms (such as Toutiao and Douyin) and Baidu Health, specifically catering to highly skilled professionals who lack expertise in self-promotion.

Chengyi Health has implemented cases in pharmaceutical and medical device marketing services.Following the implementation of centralized procurement, numerous large tertiary Grade A hospitals have ceased using non-procured stents, leaving both multinational corporations and domestic manufacturers facing challenges of sluggish sales.

Leveraging its proprietary network, Orange One Health has rapidly matched these manufacturers with medical institutions that possess strengths in cardiology. Meanwhile, by capitalizing on its multi-channel customer acquisition capabilities, the company has developed cardiac health service packages to provide membership services for patients. Currently, Orange One Health’s network covers nearly 100 public hospitals across 18 provinces, engaging cardiologists and cardiac surgeons, and has established partnerships with private hospitals in five provinces.

Chengyi Health is also strengthening its deep ties with insurance companies,"Collaborate to develop higher-quality insurance products and provide more cost-effective precision medical services."

In terms of patient services,When seeking medical care, patients need only locate specialists in the relevant fields on the Chengyi Health platform and submit their requests. The Chengyi system can then provide appointment services for outpatient visits, examinations, and more. Based on the appointment confirmation, patients proceed directly to the designated healthcare facility for further treatment.

“This model bears similarities to practices abroad, where patients may undergo CT or MRI scans at a third-party imaging center or a privately run hospital, have surgeries performed at a separate surgical center, and pick up prescriptions at a neighborhood pharmacy.” In terms of patient services, Chengyi Health also collaborates with partner physicians to research and develop specialized digital therapeutic solutions, and works with leading domestic CRO companies to conduct remote clinical trials.

Chengyi Health continues to strengthen its service capabilities for physicians and pharmaceutical/medical device companies, while also enhancing patient services, thereby fostering synergy among the three. Within this collaborative ecosystem, physicians, pharmaceutical and medical device companies, and insurance companies serve as key stakeholders. They act not only as users and payers but also as contributors of content or resources, creating value for one another. Leveraging its expertise in medical knowledge integration and technological capabilities, Chengyi Health serves as the central hub sustaining these relationships.

Jie Qi stated bluntly that the greatest challenge in the process of integrating medical service resources lies in managing information flows. From patient intake, including basic patient information and resource allocation, to data circulation during the consultation process—such as physician orders, treatment methods, diagnostic procedures, consumables used, and rehabilitation measures—as well as subsequent follow-up and tracking, every stage of the diagnosis and treatment process involves specific data with distinct significance.Based on this, and under the premise of privacy protection, Chengyi Health provides borderless precision medicine digital management tools that connect patients, physicians, private hospitals, and pharmaceutical and medical device manufacturers to achieve data sharing.

Jie Qi also shared Chengyi Health’s future plans: to further refine its nationwide borderless medical service network, integrate resources by specialty, collaborate with authoritative industry associations to assess and certify the quality control of private hospitals, deepen cooperation with pharmaceutical and medical device manufacturers, expand services in medical training, patient management, and remote clinical care, provide more precise medical services to insurance institutions, and jointly develop insurance products with greater service value.