Shubutton Technology Files IPO Prospectus: Advancing the 'Blockchain + Healthcare' Sector to Enable Interoperability of Medical Data
The 11th white paper, “Healthcare + Blockchain: Transformative Applications Across Multiple Fields,” released by the Zhejiang Digital Medical and Health Technology Research Institute, points out that “applications of ‘Healthcare + Blockchain’ emerged as early as 2014. With the maturation of foundational technologies and underlying blockchain infrastructures, the number of industry-specific applications began to increase significantly. In 2017, coinciding with the market boom in blockchain, newly launched healthcare blockchain projects reached their peak.”
From the vantage point of 2020, what new developments have emerged in the integration of blockchain technology with the healthcare sector? Where lie the potential points of convergence between the two? To address these questions, we spoke with Shuniutech Co., Ltd., a joint venture under Hyperchain Technologies—a leading blockchain enterprise—and a company dedicated to applying blockchain technology within the healthcare industry.
The emergence of Shuniutech is inseparable from two enterprises: Hyperchain, renowned for its blockchain technology, and Shulan Healthcare Management Group, which has long been dedicated to the medical industry.. Through their joint efforts, Shuniutech Co., Ltd. was established in March 2019, born with inherent and unparalleled advantages.
Hyperchain, as the holding company of Shuniutech Co., Ltd., is itself the first quasi-unicorn enterprise in the blockchain industry. As early as 2018, it secured RMB 1.5 billion in Series B financing from investors including the National Integrated Circuit Industry Investment Fund, listed companies, and traditional funds. Hyperchain has demonstrated strong capabilities in various blockchain tests and the formulation of technical standards, facilitating the widespread implementation of blockchain products. Its clients include the People's Bank of China, State Grid Corporation of China, China Telecom, and China Southern Airlines, indirectly serving up to 150 million users and supporting business transactions valued at hundreds of billions of RMB.
Shulan Healthcare Management Group is a new type of comprehensive healthcare group founded by a team of physicians. Its flagship institution, Shulan (Hangzhou) Hospital, is currently one of the fastest-growing privately run tertiary general hospitals in China, boasting strong clinical expertise in organ transplantation, infectious diseases, and other specialties. In addition to focusing on healthcare services, Shulan Group has established a strategic presence in medical education, clinical research, industrial technology, information technology, and investment incubation, positioning itself as an emerging force in the future bioeconomy.
Shuniutech, with its unique advantages, inWhile receiving blockchain strategic guidance from Hyperchain, it is exerting efforts as the sole strategic executor in its healthcare and wellness sector.. Shulan Healthcare has provided clinical practice expertise and strategic guidance in the medical field to Shuniutech, offering real-world application scenarios for Shuniutech to explore information integration with the healthcare industry., covering blockchain pilot scenarios across the entire healthcare process, including clinical care and research, health management, and infectious disease control.
In the field of medical information sharing, to address the common challenge of data sharing in healthcare and meet the industry’s urgent need for structured and standardized data, the Zhejiang Digital Medical and Health Technology Research Institute launched the Open Medical and Healthcare Alliance (OMAHA) in May 2015. OMAHA is dedicated to achieving standardization in health information technology through industry alliance collaboration and open-source initiatives, thereby enhancing interoperability among different systems and improving operational efficiency across the industry.As a member of the OMAHA Alliance’s special committee, Shuniutech has also actively engaged in practical initiatives to some extent, exploring the application of blockchain technology in scenarios for sharing health and medical information data.
Qian Yuanzhi, the head of Shuniutech interviewed by VCBeat, has long-standing ties with Hyperchain Technologies. Holding a master’s degree in Information Technology from the University of Manchester, he has extensive experience in the research and development as well as delivery management of data warehousing and business intelligence products. He previously held positions at companies such as MicroStrategy and Hundsun Technologies, and served as Director of the Strategic Development Department after joining Hyperchain Technologies. In March 2020, he took charge of the development of Shuniutech, a joint venture under Hyperchain Technologies focused on healthcare services.
Although Shuniutech Co., Ltd. has been established for only one year, it has already developed a portfolio of implemented solutions. On June 9, 2020, Shuniutech entered into a strategic partnership with H3C Group, a subsidiary of Tsinghua Unigroup. Shuniutech plans to deploy its blockchain-based intelligent data gateway products to further safeguard data at the most fundamental levels of data and resources, thereby fostering a tighter integration between blockchain technology and network infrastructure. Shuniutech’s intelligent gateway is an integrated hardware-software solution designed to standardize and protect medical data, enabling seamless on-chain recording of healthcare information.
Qian Yuanzhi stated that Shuniutech’s business can be divided into four major segments:First, the pharmaceutical and public health sector, such as pharmaceutical and medical device traceability, epidemic prevention and control, and regulatory oversight by competent authorities;Second, the Medical Security Sector, involving medical insurance and commercial insurance;3. Research Platformsconstruction;4. Out-of-Hospital Rehabilitation, covering wellness and chronic disease management, with scenarios extending from within hospitals to outside settings.
Within the pharmaceutical sector, common blockchain applications include drug traceability and tracking of pharmaceuticals and medical devices. In the field of drug traceability, the integration of Hyperchain’s IoT solutions with Shuniutech’s medical data gateway solution can maximize the elimination of errors caused by manual intervention. Meanwhile,Leveraging the immutability of blockchain data to ensure the credibility of traceability.Like in a mixed bag ofIn the medical aesthetics industry, immutable records can be provided by recording every stage on the blockchain, including practitioner qualifications, patient medical histories, post-operative outcomes, and dispute arbitration., promoting healthier development of the industry.
In the field of public health, Shuniutech has provided a blockchain-based solution for epidemic reporting. China established an epidemic reporting system in the aftermath of SARS, but the recent outbreak has highlighted areas for improvement. Shuniutech aims to enable intelligent early-warning reporting by leveraging blockchain technology for automated data submission and achieving interconnectivity and data sharing across systems.Blockchain-based data encryption safeguards the privacy of reporting physicians, relevant stakeholders, and patients, enabling precise response, intelligent decision-making, and minimal manual intervention. It also facilitates synchronized horizontal data reporting, providing decision-makers with a robust basis for assessing epidemic trends.
In the commercial insurance sector, Shuniutech believes it is not competing with insurance institutions but rather empowering the industry. Insurance companies within the sector possess a foundation of user data, enabling them to scientifically build user models.Shuniutech exists to help ensure the trustworthiness of underlying data and the security of privacy.In the mutual insurance sector, Shuniutech is still refining its business logic. Qian Yuanzhi stated that even if it enters the market, the company would choose to integrate by leveraging event traceability and the immutable on-chain recording of evidence, thereby enhancing fund supervision.
In the development of scientific research platforms, Shuniutech has recognized the immense data demands of research institutions. By leveraging trusted shared computing or federated learning, blockchain technology enables data to be usable yet invisible. This approach theoretically allows users of the research platform to access case studies from across China. Furthermore, it facilitates rights confirmation and management throughout the entire data lifecycle.The origins of the data and the identities of those who perform additions or deletions are precisely recorded and remain tamper-proof. This framework enables data providers, participants, and users to operate and circulate data as an industry sector and as assets. The resulting revenues can be fairly distributed through precise rights confirmation and management. This level of precision even extends to scientific research reports, where first and second authors are clearly designated, each individual’s contribution is accurately quantified, and the reliability of the data validation process is rigorously verified.
Currently, Shuniutech has helped buildEstablished a research platform for the National Clinical Research Center for Infectious Diseases, enabling data interoperability between the research center and its member institutions., facilitating the provision of scientific research data with a larger sample size;Regulate the data usage process and maintain evidentiary records., to ensure the contributions of various research institutions;Provides near real-time early warning for infectious diseases based on medical data from members.Currently, the research platform will be advanced in three phases,Phase I is currently deploying across four Grade A tertiary hospitals; Phase II plans to deploy in 52 Grade A tertiary hospitals; and Phase III plans to deploy in more than 300 hospitals.
In the chronic disease management sector, the integration of blockchain with healthcare scenarios has extended from in-hospital to out-of-hospital settings, increasingly encompassing home, exercise, and even dietary contexts. Shuniutech Co., Ltd. is currently collaborating with a chronic disease management institution to incorporate daily data monitoring for diabetes and hypertension in out-of-hospital environments. Furthermore,We have established a partnership with a home IoT provider to collect patient data from smart home devices, thereby enhancing the coverage of data acquisition outside hospital settings.Qian Yuanzhi also stated that he would soon be working withCollaborating with a district government to initiate chronic disease management from a single condition, integrating the care chain among family physicians, community hospitals, and patients recovering at home, thereby achieving more precise chronic disease management.
Currently, Shuniutech’s primary implementation solutions involve the development of research platforms and regional medical consortia, as well as facilitating two-way referrals and prescription circulation. In terms of healthcare security, the company is also collaborating with provincial-level healthcare security authorities. The hospitals partnering with Shuniutech are mainly located in the Jiangsu and Zhejiang regions, including Jinhua Central Hospital and Shulan Hospital, among others in various provinces. Meanwhile, it is also cooperating with traditional Chinese medicine institutions in China to conductShared Pharmacies in Traditional Chinese Medicine, Prescription Circulation, and the Development of TCM Medical Consortiaetc.
Why Do Hospitals Engage in Data Sharing? Qian Yuanzhi stated that, from the perspective of hospital presidents, two key aspects require attention: first, the development of disciplinary strengths, which necessitates continuous enhancement; and second, the overall operational effectiveness of the hospital. Currently, with the implementation of healthcare insurance cost-containment measures, the medical cost per patient is continuously declining. To achieve better revenue growth, it is essential to significantly improve the efficiency of resource utilization.
Solving scientific research problems requires hospitals to collaborate with other institutions to acquire research data, broaden sample coverage, and achieve external collaborative expansion. Revenue growth necessitates the rational utilization of available resources, alignment with the tiered diagnosis and treatment system, and the implementation of two-way patient referrals. HoweverHistorically, the level of mutual trust among hospitals and in electronic health records (EHRs) has been relatively low. To enhance trust, hospitals have often resorted to cross-shareholding to establish strategic mutual confidence, but this approach entails prohibitively high costs.With the integration of blockchain technology, costs will be effectively controlled, significantly enhancing resource utilization efficiency.
However, we may have to acknowledge that this is a task of considerable difficulty. Although Shuniutech Co., Ltd. has achieved standardized interoperability of medical data within certain healthcare groups, how can data standardization be realized across different healthcare organizations? Qian Yuanzhi pointed out,The construction of Hospital Information Systems (HIS) is highly fragmented, with each hospital operating its own HIS. Even within a single hospital, different HIS platforms may be adopted under different presidents’ tenures, leading to data heterogeneity. Variations in terminology for the same disease across different hospitals result in semantic heterogeneity. Furthermore, differences in clinical workflows contribute to various discrepancies.There are significant obstacles to achieving data interoperability.
The OMAHA Alliance, established in 2015, emerged precisely against this backdrop. It seeks to advance data normalization, semantic standardization, and the standardization of clinical processes. In this context, the foundational principles of open source, openness, and sharing are of paramount importance, serving as the underlying logic for data interoperability. Throughout its participation in healthcare data sharing initiatives, Shuniutech Co., Ltd. has continuously refined its data gateway products.Automated data adaptation based on OMAHA’s basic data elements, medical terminology, and other standards, providing essential data support for scientific research platforms.
The actual implementation process may also involve coordination in informatization planning. During the application of blockchain technology, Shuniutech Co., Ltd. encountered some issues stemming from a lack of coordinated informatization planning across hierarchical levels and among different departments at the same level, which made the deployment of blockchain technology extremely challenging.To achieve interoperability of data in informatization construction, coordinated overall planning is required., to achieve cross-regional and cross-level vertical coordination.
We can also observe that the implemented cases of Shuniutech Co., Ltd. are more concentrated in the Jiangsu and Zhejiang regions. This is related to the company’s location and its affiliation with Zhejiang University, but to a greater extent, it may be attributed to Zhejiang’s digitalization initiatives.Zhejiang has established a highly comprehensive mechanism and digitalization system, fostering a well-developed market.Other provinces still require a certain amount of cultivation, which is why Shuniutech Co., Ltd. chose Zhejiang as its first market.
Qian Yuanzhi expressed his hope that Shuniutech would be able to operate both within and outside Zhejiang Province,Achieve the implementation of typical application scenarios in the short term, establish benchmarks, and promote replication to truly address the industry pain points in the medical field; help hospitals improve efficiency and reduce costs, enhance collaboration, and thereby better expand across China.“In the future, Quniu Technology will expand its scenario coverage to a broader range, extending from hospitals, homes, and fitness centers to any setting that generates health data, including tracking the caloric content of rice cooked in your home rice cooker.”
Qian Yuanzhi believes that current blockchain technology will become infrastructure as fundamental as water, electricity, and gas in the future. Whether it is to achieve industry-wide upstream and downstream business collaboration centered on patient health records, or to enable effective operational management of medical data, blockchain technology is essential. Given the inherent sensitivity of medical data, prudent protection is required. In terms of data de-identification, blockchain provides derived computational results rather than raw data.Asymmetric encryption-based authorization for data transmission safeguards privacy data, enabling both proactive prevention and post-event oversight.The OMAHA Alliance is also drafting privacy standards for the circulation of medical big data for authoritative bodies, which will help establish certain benchmarks for private data. Across the entire industry chain—including pharmaceutical companies, insurance institutions, research organizations, and hospitals—there is a strong demand to leverage data for business growth. For Shuniutech Co., Ltd., this signals vast potential for future development.