Home Yinchuan Launches China's First 'Internet + Healthcare' Association with 40 Founding Members

Yinchuan Launches China's First 'Internet + Healthcare' Association with 40 Founding Members

Nov 05, 2018 08:00 CST Updated 08:00

Recently, Yinchuan has once again taken the lead in China’s internet healthcare industry. Under the guidance of the Yinchuan Municipal Health and Family Planning Commission, the nation’s first “Internet + Healthcare” Association was established, with the aim of creating a self-regulatory mechanism for the industry and promoting the development of industry standards and norms.
 
As of October 26, a total of 40 internet healthcare innovation enterprises and institutions have joined the association. At the second preparatory meeting, all members considered multiple factors, including industry reputation, business volume in the Yinchuan region, and regulatory compliance.Wang Hang, CEO of Haodf.com, was elected as the Association’s first President; Li Tiantian, founder of DXY, and Liao Jieyuan, CEO of WeDoctor, were appointed as Vice Presidents. The council members include nine institutions: Haodf.com, DXY, WeDoctor, Chunyu Doctor, VY Orthopedics, Hangxin Jinglian, Yizhan Technology, BlueWay Satellite Communications, and iKang Guobin.


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What challenges were encountered in establishing the association? What expectations do member companies have for the association? What issues will the association help enterprises address?In particular, what impact does it have on the development of internet-based healthcare across China?


With these questions in mind, VCBeat conducted exclusive interviews with Ma Xiaofei, Director of the Yinchuan Municipal Health Commission; Chen Qiulin, Deputy Director of the Center for Health Industry Development Research at the Chinese Academy of Social Sciences; Wang Hang, CEO of Haodf.com and the association’s inaugural president; Li Tiantian, founder of DXY and vice president; and Wang Jiong, CEO of Trustay Jinglian, a council member unit, in an effort to find answers.


Yinchuan, Inspected by Multiple National Leaders, Becomes a Highly Sought-After National Demonstration Base for “Internet + Healthcare”


It is hard to imagine that Yinchuan, a city that once rose to prominence for its “Internet Hospital,” has now surpassed first-tier cities. Frequently visited by national leaders for inspection and research, it has become a demonstration zone for “Internet + Healthcare.” As the capital of Ningxia, China’s first “Internet + Healthcare” demonstration zone, Yinchuan has attracted nearly all of the country’s top-tier internet healthcare enterprises. Yinchuan’s explorations represent the entire industry.


In September this year, the state issued the policy "Administrative Measures for Internet Diagnosis and Treatment (Trial) and Three Other Documents," transforming the internet healthcare industry from an uncertain path to one governed by law, officially ushering in a period of rapid development. How to implement the spirit of the document and promote the healthy and orderly development of new technologies and models has become an urgent issue that needs to be addressed in this innovative field.


Therefore, more than a month after the introduction of the new regulations, Ma Xiaofei, Director of the Yinchuan Municipal Health Commission, organized internet healthcare companies within the jurisdiction with the aim of jointly establishing the Yinchuan “Internet + Healthcare” Association. He was well aware that “Yinchuan is located in western China, an economically underdeveloped region, and its ability to rank among the forefront nationwide in the field of internet healthcare would not have been possible without the support of outstanding enterprises.”


In light of this, Ma Xiaofei hopes that the internet hospital hub being developed by Yinchuan will attract more outstanding enterprises and high-quality projects in the future, while also maintaining strict entry criteria. In addition to complying with State Council Document No. 26, Yinchuan, as a pioneer in the internet healthcare industry, has established even higher industry standards. The formulation of these standards and regulations aims to ensure that companies operate in compliance with laws and regulations, achieve sustainable long-term development after registering in Yinchuan, and deliver tangible benefits to the public, rather than merely obtaining a license.


“Meanwhile, for eligible enterprises and projects, we will establish a dedicated Internet Healthcare Office to provide one-stop services,” Ma Xiaofei added. Therefore, the Yinchuan Internet Healthcare Association will serve as the bridge to achieve this goal.


Coincidentally,Chen Qiulin also believes that industry associations play a crucial role under China’s current institutional framework. He noted that while both government and market mechanisms have their respective limitations, the work of associations and industry organizations can help address these gaps. In the process of exploring innovations in internet healthcare, industry associations can foster internal cohesion and self-discipline within the sector, while externally facilitating policy dialogue, social engagement, and academic exchange.


President Wang Hang: Aiming to Establish a Distinctive Internet Healthcare Association


According to Wang Hang, the greatest challenge in preparing for the establishment of the association was the concern that it would become a mere formality, lacking substantive content. However, after communicating with Chen Qiulin, who had conducted multiple investigations into the Yinchuan Model, he suddenly gained confidence in the association’s development.


This is because Chen Qiulin has long focused on the development of platform-based internet healthcare. He has organized multiple experts to conduct field research in Yinchuan, providing policy recommendations to the state based on objective investigations and demonstrations. He aims to elevate the practical achievements of enterprises within the Yinchuan Internet Healthcare Association to an academic level through data analysis and evidence-based research, summarize valuable experiences, and promote the outcomes of the Ningxia Demonstration Zone nationwide.


Subsequently, Wang Hang held further consultations with the Yinchuan Municipal Health Commission, who also endorsed his proposal. He aims to disseminate Yinchuan’s experience in internet-based healthcare across China through academic exchanges.


The first preparatory meeting of the association was held on September 25, at which communication mechanisms, industry standards, and a proposal letter were drafted. Following the establishment of the association, efforts will be focused on advancing work in three key areas:

 

First, conduct theoretical research on "Internet + Healthcare."The Yinchuan Internet + Healthcare Association has established a dedicated Academic Committee, with Professor Chen Qiulin, Deputy Director of the Health Industry Development Research Center at the Chinese Academy of Social Sciences, serving as Honorary President and Chair of the Academic Committee. The committee conducts evidence-based research on internet healthcare, employing rigorous experimental designs and analysis of real-world industry data to identify its value and limitations, thereby providing a reliable basis for further improving policy regulations and industry standards.

 

Second, establish a self-regulatory mechanism for the industry.The healthy development of the industry cannot rely solely on policy regulation; it requires greater self-discipline within the sector. This is particularly crucial for healthcare-related industries, which must avoid short-sighted pursuits and prevent the phenomenon where “bad money drives out good.” Under the leadership of the Yinchuan Municipal Health and Family Planning Commission, the Yinchuan Internet + Medical Health Association, at its inception, advocated for industry-wide adherence to the following principles: “Do not engage in medical advertising models that harm patients’ interests; do not conduct business involving suspected kickbacks from pharmaceutical sales; do not profit from the use of public hospitals’ appointment registration and bed resources; and firmly resist any illegal activities that generate profits from the buying and selling of private information.”

 

Third, promote the establishment of industry standards and norms.The formulation of standards and effective regulation both require deep engagement with corporate operational practices to identify issues and distill lessons, ensuring that regulatory efforts are precisely targeted and that public interests are genuinely safeguarded. Currently, all internet hospitals approved during the initial pilot phase in Yinchuan have joined the Yinchuan Internet + Healthcare Association. Covering diverse sectors such as online consultations, remote diagnosis and telemedicine, big data, health management, and physician education, these institutions can provide the most comprehensive first-hand data for exploring industry standards.

Vice President Li Tiantian: Hopes for Enterprises Across China to Join the Association in the Future


Li Tiantian stated that joining the association is highly beneficial to both the companies themselves and the industry as a whole.


For enterprises themselves, each company gains more opportunities to communicate with other players in the industry, such as sharing business experiences and exchanging perspectives. In particular, when a company encounters challenges, it can draw lessons from the solutions adopted by others. This is because many of these issues are common across the industry. Such collaboration offers three key benefits: first, it enables a unified voice for the sector; second, it facilitates information exchange and fosters cooperation among enterprises; and third, it allows these common issues to be consolidated and presented to policymakers, given that the healthcare industry must align closely with regulatory policies.


For the government, formulating relevant policies requires conducting on-site visits and surveys of enterprises. The association, which brings together all these companies, can help them access more comprehensive information. However, the association is registered in Yinchuan, where there are only a limited number of internet healthcare companies.Therefore, Li Tiantian hopes to include some nationally representative corporate members in the future.


For instance, Mindray International, which currently provides services to physical hospitals in Yinchuan, participated in this conference. Wang Zhao, its Strategic Vice President, stated that the company aims to collaborate with various internet healthcare enterprises in the future to provide patients with full-lifecycle services. Currently, Mindray International is supporting Yinchuan First People’s Hospital in carrying out telemedicine initiatives, integrating high-quality national medical resources, breaking down information silos, and promoting the establishment and implementation of internet-based medical disciplines. It is also striving to assist in the construction of a remote neuroelectrophysiology medical consortium centered on Yinchuan First People’s Hospital.


For the industry, associations play a coordinating and leading role. The rapid development of internet healthcare requires multi-stakeholder efforts, including participation from government regulatory agencies, policy research departments, public medical institutions, private healthcare providers, non-profit organizations, and even upstream and downstream stakeholders within the industry, all working together to drive the sector’s overall growth.


“Therefore, our association will certainly play a role, but we must also adopt a more open mindset and connect with other industry associations, such as the Hospital Association and the Association of Hospital Presidents.”Li Tiantian added. When Wang Hang called him to discuss the establishment of the association, he offered his full support,He said, “You don’t need to explain the reasons for organizing the conference; just assign me my tasks directly.”


Since its inception, the only notable change has been the government’s active encouragement and support for the association’s development. As a result, initial planning, drafting of the bylaws, registration, screening of member organizations, and division of responsibilities were all completed within a very short period. This demonstrates the association’s overall commitment to efficiency and pragmatism.


When screening companies for membership, Li Tiantian stated that priority would be given to inviting industry leaders and companies with strong reputations, as these enterprises can not only serve as role models but also promote the standardized development of the industry.


No excessive demands are made on profitability; it is sufficient to ensure the normal operation of the association.Membership fees paid by corporate members constitute one source of revenue, with fee structures benchmarked against industry standards. In the future, additional commercial development opportunities will be explored based on actual circumstances. “We are well-versed in commercial operations; if there is demand, it is only natural to proceed accordingly,” said Li Tiantian.


Input is primarily determined by the volume of work.If the association has a limited workload in its early stages, staff can serve in part-time capacities; later, when it wields significant influence and can play a substantial role, dedicated personnel should be recruited.


Wang Jiong, CEO of Hangxin Jinglian, a Council Member Unit: Hope to Establish a Platform Communication Mechanism as Soon as Possible


What Do Members Expect? VCBeat Interviewed Wang Jiong, CEO of Hangxin Jinglian, Who Expressed Hope That the Association Would Establish a Communication Mechanism as Soon as Possible to Facilitate Future Work.

In Wang Jiong’s view, the newly established Yinchuan Internet Healthcare Association serves as a connector. The priority is not to establish communication mechanisms among member enterprises within the association, but rather to build platform-level communication channels. Only on this basis can we discuss the joint development of enterprises within the association, coordinating upstream and downstream resources—including businesses and government entities—to deliver more efficient and valuable services.

Meanwhile, he believes that the healthcare industry in China holds immense potential for growth. As long as companies adhere to their core responsibilities and excel in their respective fields, they will enjoy broad prospects for development. Taking his own company as an example, Hangxin Jinglian leverages the extensive experience accumulated by its parent company, Jinglian Technology, to focus on the core diagnosis and treatment aspects of healthcare reform. It specializes in building internet hospitals, providing digital solutions for medium-to-large hospitals and medical institutions, while also establishing a closed-loop medical service system for consumers that integrates health consultations, online diagnostics, and online medication purchases. In the future, the company aims to connect public health education, health services, and health management, thereby benefiting and serving more people by enabling them to access more convenient medical care.