Diaolong Data Files for STAR Market IPO: Pioneering DRGs-Driven Smart and Internet Hospitals

Established in 2000, officially launched medical record statistical management software in 2004, won the China Excellent Software Award in 2008, introduced the HBI large platform in 2010, completed the construction of a medical institution service capability analysis and evaluation platform in Shanxi Province in 2013, implemented the three major systems for medical quality and safety at Tongji Hospital in Wuhan in 2015, and was listed on the “New Third Board” in 2016…

After more than a decade of exploration in the field of medical big data, Wuhan Diaolong Medical Data Services Co., Ltd. (hereinafter referred to as “Diaolong Data”), aligning with policy shifts toward structural optimization, launched in 2017 a hospital refined management platform centered on Diagnosis-Related Groups (DRGs), along with information technology infrastructure for smart hospitals and internet hospitals focused on data interoperability.

VCBeat (WeChat: vcbeat) has learned that Diaolong Data won the bid in September for the informatics construction project of Tongji Hospital’s Internet Hospital. To date, Diaolong has secured DRG-related projects for more than 300 public Grade A tertiary and secondary hospitals across Hubei Province, and is accelerating its layout in smart hospital and Internet hospital initiatives.

Luo Bin, founder of Diaolong Data, told reporters that in recent years, the company has consistently focused on the “management, utilization, and visualization” of data, adhering to a clear path encompassing data collection, management, usage, and viewing. Furthermore, all of Diaolong Data’s applications are built upon ETL (Extract, Transform, Load) data collection tools, case report forms, and BI (Business Intelligence) tools, with a commitment to realizing the “eight-character mantra” of data: consistency, comparability, benchmarking, and evaluation.

On one hand, Diaolong integrates data generated by current hospital business process systems. Through intelligent medical data analysis, it focuses on DRG-centered data applications, including a DRG data analytics platform, hospital performance evaluation based on DRGs, the DRG-based payment system, and quality and safety assessments for inpatient care under DRGs.

As is well known, DRG data collection is sourced from the front page of medical records. However, the information on the front page is extensive and involves multiple systems, including the Medical Record System, Hospital Information System (HIS), and Electronic Medical Records (EMR). Based on the content of the front page of medical records, Diaolong Data performs data collection and quality control. It then utilizes its independently developed DRG grouping tool to comprehensively consider patients’ principal diagnoses and primary treatment methods, while incorporating individual characteristics such as age, complications, and comorbidities. This process groups cases with similar disease complexity and costs into the same DRG group, thereby establishing an objective basis for comparing medical services of varying intensities and complexities. Further analysis is conducted, ultimately supporting the applications mentioned above.

On the other hand, Diaolong Data focuses on smart hospitals and internet hospitals, assisting healthcare institutions in implementing comprehensive informatization solutions. These include platforms for medical expense payment and settlement, appointment registration and scheduling, and supervision of medical service behaviors, as well as cloud-based physician services, cloud nursing, and clinical pharmacist intervention and guidance platforms. This support enables hospitals to build internet hospital capabilities by optimizing both service delivery and regulatory oversight processes.

Luo Bin stated that Diaolong Data currently relies on the “two-wheel” drive of DRGs, smart hospitals, and internet hospitals. By first optimizing these areas, the next step will be to integrate internet hospitals with DRGs to achieve online health management for consumers.

According to VCBeat’s report, “Entering the Era of Value Output: Medical Big Data Industry Report,” medical big data has ushered in its golden age, with as many as 126 clinical medical big data companies in China.

“It was the best of times, it was the worst of times.” Luo Bin told reporters that it is the best of times because this is a sunrise industry with a long industrial chain and strong vitality; it is the worst of times because competition is extremely fierce, with mixed quality among participants, requiring consolidation and maturation.

Luo Bin stated that the most critical criterion for differentiation is whether the solution has infectious growth potential and a genuine product operation system, with the second being its feasibility of implementation. Over the years, Diaolong has successfully delivered the DRG platform in Hubei Province, the Medical Institution Service Capacity Analysis and Evaluation Platform in Shanxi Province, and the Data-Driven Healthcare Reform Monitoring and Evaluation Platform in Yunnan Province, all of which have been validated.

Luo Bin stated that Diaolong’s current priorities are as follows: First, to adopt a more measured approach by solidifying its product foundation through continuous iteration and improvement. Second, to strengthen software operations and enhance the ecosystem for data services. Third, to continuously innovate internal incentive mechanisms to build a stronger talent team. Furthermore, guided by new policies, Diaolong will identify additional opportunities and strive toward a more promising future.

Diaolong Data is striving for a listing on the STAR Market. Luo Bin predicts that, at the current pace, Diaolong will list on the STAR Market within two to three years.

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