Pilot Programs and Institutional Innovation: Public-Private Workshop Explores the Development Path of the Health Industry in the New Economy Era [2019 VB100]

On December 20, 2019, during the 2019 Top 100 Future Healthcare Companies Conference, a closed-door seminar on new opportunities in the digital healthcare industry was held as scheduled. Hosted by the New Economy Promotion Bureau of the Tianjin Economic-Technological Development Area (hereinafter referred to as “Tianjin TEDA”), the event was moderated by Mr. Bi Yuanfeng, COO of VCBeat. The conference invited representatives from 14 rapidly growing companies listed on VCBeat’s Top 100 Future Healthcare Companies, including Taimei Medical, Penguin Doctor, Xingmai Technology, Quanyu Medical, Miao Health, and Tongxin Medical Alliance, to jointly discuss thorny issues encountered in the development of the broader healthcare industry and explore potential future directions.

Numerous studies on regional industrial clusters have found that policy factors are the core driving force behind regional economic development. Following the opening of the symposium, the head of the Tianjin TEDA New Economy Promotion Bureau delivered a keynote speech titled “The Path to Innovative Development in the Big Health Industry Led by the New Economy,” providing a detailed overview of Tianjin TEDA’s historical evolution, current development status, and its innovative investment promotion policies in recent years. It was noted that Tianjin TEDA, as one of the first national-level development zones with a 35-year history, boasts the largest economic volume in China. In recent years, it has been actively embracing the new economy, characterized by sharing models and cutting-edge technologies, to drive the transformation of its regional pillar industries from traditional manufacturing to high-tech industries centered on independent innovation.

“Tianjin TEDA has boldly explored institutional innovation based on the core demands of corporate development, providing enterprises with the maximum possible policy incentives.” The official stated, “The big health industry, with biopharmaceuticals as its mainstay, has begun to emerge as a key pillar industry in Tianjin. In 2018, Tianjin TEDA achieved a total output value exceeding RMB 42 billion. Leading companies across various sectors of healthcare and big health, including JD Health, LinkDoc, Genetron Health, Novo Nordisk, CanSinoBIO, Asymchem, and Sainuo Medical, have successively established their presence in Tianjin TEDA.”

Mr. Bi Yuanfeng pointed out that VCBeat, after analyzing a large number of practical cases, concluded that as the healthcare industry is characterized by high entry barriers and public service attributes, full engagement between government regulators and industry promoters at various stages of sector development constitutes a critical component of policy formulation.

Relevant Officials from the Tianjin TEDA New Economy Promotion Bureau Engage in Discussions with Participating Enterprises

Following the transition to the thematic discussion session, officials from the Tianjin TEDA New Economy Promotion Bureau engaged with industry representatives on hot topics such as practice licenses, pilot programs and demonstrations, overseas listings, and fund cooperation.

After years of explosive growth, medical artificial intelligence (AI) has entered the phase of industrial implementation. The uncertainty surrounding qualification review policies for hospital admission of AI-based products has become a bottleneck for most companies in the industry. A representative from a medical AI company stated that their ten medical AI products have been widely deployed in over 400 hospitals across China. Before the formal implementation of product qualification and regulatory policies, they hope to explore, through demonstration pilots, an implementation model led by tertiary Grade-A hospitals that extends application scenarios downward to streamline the medical imaging workflow.

After carefully inquiring about the specific requirements for implementation and whether any precedents exist in China, the head of the New Economy Bureau’s Promotion Division stated that Tianjin TEDA is highly willing to facilitate the launch of pilot programs by the relevant competent authorities.

Numerous internet healthcare and health management companies are closely monitoring Tianjin TEDA’s policies regarding medical and financial operating licenses. Some companies have explicitly inquired about the potential pathways and timelines for obtaining internet healthcare and insurance licenses within Tianjin TEDA.

In previous approvals of internet hospitals, the relevant qualifications were granted to the physical hospitals that implemented the services, which did not meet the interests of some internet companies. "Currently, the approval authority for internet hospitals has been delegated to the Administrative Approval Bureau of the Development Zone, allowing internet hospital licenses to be directly issued to internet companies," said a representative from the New Economy Promotion Bureau. Tianjin TEDA will strengthen further cooperation with enterprises and encourage them to actively apply for relevant qualifications during the period when policy incentives remain prominent.

Moreover, government industrial guidance funds are undoubtedly a persistent hotspot in the development of the new economy. The official stated that in 2020, Tianjin TEDA would provide greater financial support to enterprises within the region by establishing funds to support high-tech projects, thereby shifting its focus from merely monitoring corporate growth to actively accompanying enterprises throughout their growth journey.

In response to proposals from enterprises seeking to collaborate on establishing a fund, the official stated that such initiatives could be implemented in Tianjin very rapidly. “The Tianjin Municipal Development and Reform Commission is currently designing a cooperation framework for government-guided funds, explicitly requiring each district government within its jurisdiction to contribute capital. The plan is expected to be officially announced to the public in early 2020.”

Currently, the Development Zone has taken the lead in creating innovative cases in areas such as internet hospitals, cross-border investment and financing, regulatory separation of warehouses and stores for pharmaceutical e-commerce, and online wholesale of pharmaceuticals, based on project requirements. It continues to promote pilot programs for cross-border e-commerce models for oncology drugs and innovative business cases such as bonded importation of medical devices. Following the thematic seminar, participating enterprises remained on-site to engage in one-on-one discussions with relevant officials from the New Economy Promotion Bureau.

Symposium Venue

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