Weekly Report: Jiui Tech Secures RMB 210 Million Investment from WeDoctor; Medical Consortiums Expand Rapidly with Over 20 Specialties Established

In 2017, the development of medical consortia across China could be described as flourishing everywhere. Although it was not a new concept, under the backdrop of the new healthcare reform, it became a driving force for the implementation of tiered diagnosis and treatment, entrusted with significant responsibilities in the new era.

This year has been remarkably dynamic. Government agencies at all levels across China have issued numerous policies, prompting hospitals of all tiers to respond actively. The medical consortium model has expanded significantly, with more than 20 types of specialized medical consortia now established.

Perspective

1、 Frequent Release of Policies Related to Medical Consortia Across China

Since January 2017, policies promoting medical consortia have been issued nationwide. Numerous institutions have participated in issuing these policies, including the General Office of the State Council, the National Health and Family Planning Commission, the General Office of the National Development and Reform Commission, the National Development and Reform Commission, and provincial health and family planning commissions.

Among them, the provincial Health and Family Planning Commissions participated most frequently, followed by the General Offices of the Provincial People's Governments and the municipal Human Resources and Social Security Bureaus.

By 2020, building on the experience gained from pilot programs, China will comprehensively advance the development of medical consortia and establish a relatively comprehensive policy framework for them. All secondary public hospitals and government-run primary healthcare institutions will participate in medical consortia.

2、All Tertiary Public Hospitals Initiate the Construction of Medical Consortia

Whether medical consortia can be successfully implemented hinges critically on the leading role played by large tertiary Grade A hospitals. Policies have explicitly mandated that all public tertiary hospitals across China initiate the establishment of medical consortia, achieving notable results.

As is well known, in the process of tiered diagnosis and treatment, upward referrals are often obstructed, while downward referrals lack awareness. To address this, the First Affiliated Hospital of Chongqing Medical University has established a green channel, enabling patients referred from primary care institutions to be transferred back within three to five days after surgery. However, some primary healthcare institutions are not yet fully capable of providing adequate postoperative rehabilitation. Therefore, these patients are first transferred to the Hospital’s Integrated Medical and Elderly Care Department, thereby freeing up limited medical resources.

The innovative model of Sir Run Run Shaw Hospital, Zhejiang University School of Medicine, known as the “Shaw Hospital Model,” encompasses multiple dimensions, including an innovative modern hospital management system, high-quality patient care experiences, superior medical quality and safety, an advanced smart healthcare platform, and a hospital culture that is patient-centered and staff-oriented.

The reform of public hospitals has raised higher requirements for large public hospitals in terms of hospital management systems, operational mechanisms, informatization, smart healthcare development, personnel and compensation systems, and collaborative development among medical institutions. In fact, during the comprehensive advancement of public hospital reform, Sir Run Run Shaw Hospital has taken a leading position in multiple areas.

3、The Construction of Medical Consortiums May Face More Challenges Next Year

First, supply-side reform has brought new challenges to the reform of public hospitals. The reform of urban public hospitals aims to resolve contradictions in their systems and mechanisms; the establishment of a tiered diagnosis and treatment system is intended to correct distortions in resource allocation.

Second, the expansion of the connotation and extension of social service demands poses challenges to such hospitals;

Third, technological advancements have brought new challenges and opportunities to the transformation of healthcare service models;

Fourth, the implementation of policies such as zero markup on pharmaceuticals and multi-site practice for physicians has created a forcing mechanism for the operation and development of public hospitals. If they do not take the initiative to reform, the development pathways available to public hospitals may become increasingly narrow in the future.

Faced with numerous challenges, tertiary hospitals must first clarify their positioning by determining which conditions they should accept for treatment and which they should not.

Secondly, strive to enhance the capacity to manage complex cases referred from other hospitals. When patients who cannot be treated elsewhere are transferred to your facility for care, you must be fully equipped to handle them. This requires advanced clinical capabilities and innovation, enabling you to perform interventions that others cannot.

Report

Medical Consortiums: Rapid Scale Expansion, Proactive Stance from Large Hospitals, and Diversified Models with Over 20 Specialty Types [2017 Year-End Review]

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