China's Internet Hospitals: Strategic Positioning and Industry Reflections — Highlights from the 5th Future Healthcare 100 Summit

At the Internet Hospital Innovation Forum, Xie Shuang, Director of the Chengdu Chip Valley Development Service Bureau; Yuan Fang, Director of the Information Department at Yinchuan First People’s Hospital; Tian Min, Partner at Yuanjing Capital; Yang Jianchun, Dean of Baidu Health Internet Hospital; Wu Hao, CEO of Taozi Internet Hospital; Hu Yazhou, Vice President of Taozi Internet Hospital; Wang Chenhao, Researcher at VCBeat Institute; Yue Yifeng, General Manager of Huaxi Public Utilities; Chang Jiang, Founder of Umai Technology; Li Guangjun, General Manager of Strategic Planning at Yuanxin Medical Technology; Lu Tao, General Manager of Zhiben Internet Hospital; and Chen Qiulin, Deputy Director of the Health Industry Development Research Center at the Chinese Academy of Social Sciences, attended the event and delivered insightful speeches.

From April 16 to 18, 2021, the “5th Future Healthcare Top 100” Conference, organized by VCBeat, co-hosted by the People’s Government of Wujiang District, Suzhou City, and the Guangdong Zhong Nanshan Medical Foundation, with support from Suzhou Wujiang Dongfang State-owned Capital Investment and Operation Co., Ltd., and featuring Ali Health as the exclusive strategic partner, was grandly opened in Wujiang, Suzhou.

As a dedicated observer and chronicler of the innovative healthcare industry, VCBeat officially launched the Future Healthcare 100 Forum in 2015. Over the past six years, it has grown into a renowned premier event fostering the integration of industry and capital within China’s healthcare innovation sector.

This conference brings together 279 distinguished guests and features 19 forums, focusing on future trends, industry prospects, global perspectives, and venture capital relationships. The forums include: Summit on Future Healthcare Trends, Summit on Future Healthcare Strategy, International Healthcare Innovation Summit, Future Healthcare Fund Partners (LP-GP) Summit, Forum on Personalized Diagnosis and Treatment, Forum on Health Insurance Technology and Commercial Health Insurance, Forum on Innovative Practices in Primary Care, Forum on Digital Therapeutics Innovation, Forum on Digital Marketing for Pharmaceutical Companies, Forum on the Development of High-Value Consumables, Forum on Innovative Development of Internet Hospitals, Forum on Transformation of Scientific Achievements and Industrial Development, Forum on the Development of the Assisted Reproductive Industry, Forum on Data Intelligence and Payment Innovation, Forum on Innovative Development of Smart Hospitals, Forum on Health Management Innovation, Forum on Digital Drug R&D (ITBT), Forum on Early Cancer Screening, and Forum on Innovation in the Medical Aesthetics Industry.

Yuan Fang, Director of the Information Department, Yinchuan First People's Hospital

Yuan Fang, Director of the Information Department at Yinchuan First People’s Hospital, shared insights and experiences from exploring the “Yinchuan Model” of Internet Plus Healthcare in his speech. As China enters a new era of rapid development, public demand is driving potential transformations in healthcare delivery models. The Internet plays a pivotal role in addressing current challenges, including bridging the supply–demand gap for high-quality medical services, facilitating the transition of traditional clinics into hospitals, building an integrated healthcare ecosystem, and decentralizing premium medical resources to grassroots levels.

Tian Min, Partner at Yuanjing Capital

Ms. Tian Min, Partner at Yuanjing Capital, noted in her speech that the pandemic has catalyzed a shift in patients’ perceptions of healthcare needs. Coupled with favorable national policies, this has accelerated the development of internet healthcare overall, creating a fertile ground for entrepreneurs and practitioners to establish robust online hospitals. Therefore, 2019 and 2020 will mark a significant turning point for internet healthcare. Substantial service opportunities exist across various specialized departments and fields, which can be empowered and transformed by internet healthcare. By leveraging the “Internet + Healthcare” model, in-hospital scenarios can be extended to communities and homes, ultimately encompassing comprehensive personal health management services.

Yang Jianchun, Dean of Baidu Health Internet Hospital

Yang Jianchun, Dean of Baidu Health Internet Hospital, stated in his speech that the financing, investment, scale expansion, and market of internet hospitals have experienced rapid growth over the past five years, forming a relatively complete industry landscape. However, most internet hospitals or platforms in this sector remain unprofitable. Therefore, it is essential to address pain points from three perspectives: industry challenges, policy, and technology. Only by solving these problems can true value be created; only by achieving complete and replicable value delivery can one emerge as an early winner in this sector. Through comprehensive industry research, Baidu Health Internet Hospital has developed a new model for integrated online-to-offline triage and diagnosis and treatment. This model precisely matches online users with the specialized departments of offline hospitals. By seamlessly connecting online and offline services following this matching process, and through integrated online-offline operations, the overall outpatient efficiency of partner hospitals is enhanced.

Hu Yazhou, Vice President of Taozi Internet Hospital

Ms. Hu Yazhou, Vice President of Taozi Internet Hospital, mentioned in her speech that Chengdu was named the Happiest City in China 2020. The city has established 66 key industrial parks, among which the Gaoxin District Software Park is one of China’s Top 10 Most Dynamic Specialized Software Parks and has incubated multiple unicorn companies, with an annual output value exceeding RMB 300 billion. Leveraging Chengdu’s advantages in medical resources and talent, the Dolphin Internet Medical Industrial Park provides a green channel and facilitating conditions for enterprises settling in Chengdu to apply for internet hospital licenses.

Wang Chenhao, Researcher at VCBeat Institute

Wang Chenhao, a researcher at VCBeat Institute, noted in his speech that specialized diagnosis and treatment via internet hospitals, chronic disease management, and the construction of a comprehensive closed-loop ecosystem will see significant progress. This will truly realize the value of internet healthcare and help participating companies establish stronger competitive barriers. The niche of men’s health internet hospitals, an excellent sector previously hindered by social stigma, is still in its early developmental stage with relatively low competitive pressure. Therefore, securing extensive coverage of active physician resources is key to building a competitive advantage.

Yue Yifeng, General Manager of Huaxi Public Utilities

Yue Yifeng, General Manager of Huaxi Public Utility, stated in his speech that licenses are not scarce resources. The Document No. 26 issued on April 28, 2018, served as a clarion call and a pivotal milestone, acting as a stimulant for the entire industry. Moving forward, there will be significant opportunities for public medical resources to acquire patients. Under the umbrella of Huaxi Public Utility are West China Internet Hospital and Huayitong. Among them, West China Internet Hospital continues to facilitate convenient and accessible consultations from a non-profit, public welfare perspective.

Chang Jiang, Founder of Umai Technology

Chang Jiang, founder of Umai Technology, stated in his speech that both digital therapeutics and chronic disease management are physician-centric operational and management tools. Current internet healthcare platforms have already demonstrated the irreplaceable role of physicians. Over the past few years, Umai has diligently explored research in intelligence to better provide physicians with more valuable platforms and tools. This aims to enhance physicians’ efficiency, simplify clinical practice, and amplify and empower the capabilities of specialists. Therefore, we position ourselves as a physician value platform, enabling physicians to build their personal image and reputation, fulfill their branding needs and self-actualization, and achieve compliant monetization of their income on the commercial end.

From left to right: Chen Qiulin, Deputy Director of the Health Industry Development Research Center at the Chinese Academy of Social Sciences; Yang Jianchun, Dean of Baidu Health Internet Hospital; Wu Hao, CEO of Taozi Internet Hospital; Li Guangjun, General Manager of Strategic Planning at Yuanxin Medical Technology; Yue Yifeng, General Manager of Huaxi Public Utilities; Lu Tao, General Manager of Zhiben Internet Hospital

On April 17, 2021, a roundtable discussion was successfully held at the 2021 Top 100 Future Healthcare Internet Hospital Innovation Forum in Wujiang, Jiangsu Province. Centered on the theme “Positioning and Strategic Considerations for the Future Development of Internet Hospitals in China Driven by Policy Guidance and Market Forces,” the session featured distinguished guests including Chen Qiulin, Deputy Director of the Health Industry Development Research Center at the Chinese Academy of Social Sciences; Li Guangjun, General Manager of Strategic Planning at Yuanxin Medical Technology; Yang Jianchun, Dean of Baidu Health Internet Hospital; Wu Hao, CEO of Taozi Internet Hospital; Lu Tao, General Manager of Zhiben Internet Hospital; and Yue Yifeng, General Manager of Huaxi Public Utility. The participants engaged in in-depth discussions on topics such as “The Value of Internet Healthcare,” “Differences Between Chinese and International Internet Healthcare Models,” “Current Pain Points and Challenges in Internet Healthcare,” and “Research and Design of Policies Related to Internet Healthcare.”