Lanxi Health: Building a Community-Based Digital Health Management Model Backed by Greentown and Neusoft

What Makes a Good Home? A good home must have excellent community amenities. In recent years, as people’s health awareness has grown, community healthcare facilities have gradually become an important criterion in home selection. In response, many real estate developers have begun to cross over into the healthcare sector by offering “buy a home, get health” packages. Among them, Greentown Group stands out most prominently.

In September 2014, Greentown Property Service Group Co., Ltd. and Blue City Investment Management Co., Ltd., both subsidiaries of Greentown China, jointly established Hangzhou Lanxi Health Management Co., Ltd. (hereinafter referred to as “Lanxi Health”) in partnership with Neusoft Xikang Health Technology Co., Ltd. The company is committed to providing premium health management, medical care, and elderly care services to individuals, families, enterprises, and communities.

Through three years of dedicated efforts, Lanxi Health has achieved outstanding results in homeowner recognition, user base, and revenue. So, what advantages does Lanxi Health have in community health management?

Although it started with Greentown Community, for Lanxi Health, Greentown was merely its first client. Currently, in addition to Greentown, Lanxi Health has established partnerships with Shimao, Fosun, Zhonghong, and others.

First, property advantages: lower rent and reduced costs.Leveraging Greentown’s real estate advantages, Lanxi Health adopts a model involving upfront consulting and planning for real estate projects, followed by subsequent occupancy and operations. By using property-supported health services as its entry point, the company enjoys incentives such as zero or minimal rent, waived property management fees, and no utility charges, thereby significantly reducing operational costs. This has enabled Lanxi Health to rapidly establish a presence in communities served by Greentown Property Services Group, where it builds clinics, health examination centers, sports facilities, and physiotherapy centers to provide health and medical services to residents.

Second, backed by Greentown, it commands a customer base of one million.Greentown Group, a leading enterprise in China’s real estate industry, has always placed significant emphasis on property management services. Its subsidiary, Greentown Service, is the second-largest property management company in China, dedicated to developing truly high-end residential properties and currently serving over 300,000 middle-class and affluent households. Relying on Greentown, Lanxi Health has gained access to its millions of stable customers.

Third, leverage Neusoft to access advanced technologies and equipment.Neusoft Group has been deeply engaged in the health services sector for many years, boasting state-of-the-art medical equipment and healthcare platforms. It provides comprehensive healthcare informatization solutions to patients and wellness clients, governments, health administrative departments, professional public health institutions, medical service providers, and primary healthcare facilities. According to IDC reports, Neusoft has ranked first in market share within the medical IT sector for consecutive years. Lanxi Health leverages Neusoft’s technological advantages to build its own online chronic disease management platform.

Therefore, leveraging the resources and advantages of their respective parent companies in their fields, Lanxi Health rapidly deployed community health service centers in high-end communities served by Greentown and Blue Town Property Management. These centers focus on health management, community healthcare, rehabilitation services, and elderly care as their core businesses. Drawing on Neusoft Xikang’s successful experience with its intelligent cloud platform, Lanxi Health has established an O2O (online-to-offline integrated) community health and medical service network.Bringing professional healthcare services into communities and homes, pioneering a new model for community- and home-based healthcare.

It is reported that Lanxi Health has established two health management centers in Greentown’s Xixi Chengyuan and Jiuxi Rose Garden, providing community residents with services such as routine physical examinations, single-item re-examinations, post-examination management, telemedicine, and general practice outpatient care. Meanwhile, Lanxi Health has also opened two general practice clinics at Shenlan Plaza and Chunjiang Huayue, offering chronic disease management and general practice outpatient services to residents.

However, Zhang Tao, Head of Product at Lanxi Health, told reporters that neither physical examination centers nor clinics are the business models they currently advocate, and he explicitly stated that there would be no large-scale expansion in the future. Beyond the costs involved (establishing a physical examination center requires a minimum investment of RMB 15 million), this decision is also driven by longer-term commercial considerations.

“The number of residents in the neighborhoods within our clinic’s catchment area is simply too small, amounting to only a few hundred patients per year. For property owners in these residential complexes, there is little practical difference between receiving medical care downstairs and visiting other clinics two streets away. Furthermore, routine health management services, such as medication dispensing and blood pressure monitoring, can also be obtained at pharmacies. Therefore, opening a clinic holds limited significance for us,” said Zhang Tao.

If it does not promote physical examination centers and clinics, how does Lanxi Health generate profits? According to Zhang Tao, Lanxi Health has leveraged IoT and internet technologies to launchLanxi Wen'an Health Management Cloud Platform. Leveraging a cloud-based platform, Lanxi Health’s team of care managers and physicians connects with users and their families via mobile app, WeChat, SMS, and phone calls to deliver health management services.

According to Zhang Tao,Currently, Lanxi Health’s health management business has achieved an annual revenue of tens of millions of yuan, with a gross profit exceeding 10 million yuan. It has cumulatively served over 120,000 clients, 60% of whom are from Greentown residential communities, along with some otherFor real estate companies, health management firms, and corporate clients outside of Greentown, with an overall control rate of 74.1%.In other words, over 70% of patients with chronic diseases who received health management services from Lanxi Wen'an experienced control and improvement in their conditions.

There are so many companies in the health management sector, and they have developed numerous apps. However, Lanxi Health manages 120,000 clients solely through the WeChat client. How is this possible?

First, Lanxi Health adopts IoT devices that are easy for the elderly to operate.Currently, most health management companies rely on devices that require Bluetooth or Wi-Fi connectivity (including blood pressure monitors, glucometers, and body fat scales). This poses a significant challenge for elderly individuals who are not even proficient in using smartphones. In contrast, Lanxi Health employs GPS-based IoT detection devices that automatically upload data simply by inserting a SIM card. “For the elderly, our device is just an ordinary blood pressure monitor or glucometer; they do not need to manage data transmission themselves. After the test is completed, the data is automatically uploaded to the cloud,” said Zhang Tao.

Secondly, Lanxi Wen’an can be easily linked to users’ children, enabling them to monitor their parents’ health anytime and anywhere.Children need only scan the QR code on the device with their smartphones to link it to WeChat. Once parents perform a test using the device, their children will receive corresponding notifications via WeChat. Through the official WeChat account, children can clearly view all health monitoring details of their parents over the past seven days.

Finally, Lanxi Wen'an employs specialized algorithms to scientifically manage customer data.Conventional health management platforms typically trigger alerts when data anomalies are detected, prompting health managers to call users. However, frequent calls often cause inconvenience to customers. Lanxi Wen’an employs specialized algorithms to intelligently identify individuals who require assistance versus those who do not, ensuring that only those with genuine needs are referred to backend health managers. This approach makes health management more scientific and human-centric, thereby enhancing the user experience.

“Our online health management services are designed to help users cultivate healthy lifestyle habits. Chronic diseases are neither life-threatening nor difficult to treat; as long as you follow medical advice, they can certainly be well controlled.“Zhang Tao told reporters.”

However, Lanxi Health’s “ambitions” extend far beyond this.Lanxi Health has transformed Lanxi Wen’an into an open platform, making it available to other health management companies, pharmacies, hospitals, and more. Through this platform-sharing initiative, the company aims to establish a strategic alliance. Members of the alliance will share resources and jointly explore a more effective health management model that customers are more willing to pay for.

Companies need only make a one-time payment of tens to hundreds of thousands of yuan to obtain usage rights for this platform.This approach is significantly more cost-effective than building a platform from scratch. According to Zhang Tao, Lanxi Health initially invested nearly RMB 15 million in developing its platform, with millions more spent on multiple rounds of trial and error. In fact, the company initially devoted substantial resources to developing a standalone mobile app, only to find it ineffective. Apps consume storage space and data bandwidth, leading many users to resist downloading them. Moreover, an app is not an essential need for customers and is unlikely to be opened daily. After considerable deliberation, Lanxi Health ultimately decided to host its platform on the WeChat client.

“This represents the tuition we have paid to date. If enterprises choose not to collaborate with us, opting instead to navigate independently or engage other software companies for platform development, they will likewise incur trial-and-error costs and pay their own “tuition.” However, this approach not only requires substantial financial backing but also demands a significant investment of time. Developing a mature platform typically takes at least two to three years; by the time the product is launched, the market will have already been captured by competitors.”

In addition, to provide park owners with more diversified health management services, Lanxi Health has extended its business offline by opening Traditional Chinese Medicine (TCM) physiotherapy clinics and sports centers. It is reported that Lanxi Health has currently opened eight TCM physiotherapy clinics in Hangzhou.

Evidently, Lanxi Health is far more enthusiastic about opening a traditional Chinese medicine (TCM) physiotherapy center than a clinic. This is primarily because, from Monday to Friday, only the elderly, children, and postpartum women are at home. What this demographic truly needs may not be a medical clinic for treating illnesses, but rather a wellness or convalescence center where they can receive Tui Na (Chinese therapeutic massage) or shoulder and neck massages on a regular basis. Moreover, the elderly generally have a higher level of awareness and acceptance of TCM. Therefore, establishing a TCM physiotherapy center within the industrial park is more practical than opening a clinic.

Additionally, TCM physiotherapy presents a highly lucrative profit opportunity.A traditional Chinese medicine (TCM) physiotherapy clinic requires only about 50 square meters of space, equipped with a few treatment beds and one or two therapists. With no rent expenses, the initial investment is very low. Currently, Lanxi Health encourages customers to purchase TCM physiotherapy membership cards. Each card costs between RMB 5,000 and 6,000, covering approximately 50 sessions at around RMB 100 per session. If a customer visits two to three times per week, they would need to purchase roughly two cards per year. As a result, Lanxi Health’s TCM physiotherapy clinics achieve nearly 100% profitability on an annual basis.

In addition, Lanxi Health has also opened sports lifestyle centers in multiple industrial parks.Unlike large-scale gyms, Lanxi Sports & Lifestyle Hub, being property-backed, has limited space. As such, it operates more like a private fitness studio, equipped with various exercise machines but staffed by only one or two fitness coaches.

If the space allocated by real estate developers to the gym is too small (e.g., 100 square meters), Lanxi Health has even openedUnmanned Fitness Center. There are no longer any coaches on-site; all training is conducted through online video tutorials. Users need only scan the access control with their mobile phones to enter the facility and work out independently. Of course, users with specific needs can book a coach online for personalized training sessions.

Therefore, Lanxi Health will focus on expanding its TCM physiotherapy clinics and sports facilities in the future. Meanwhile,They also bundle Traditional Chinese Medicine (TCM) therapies, fitness centers, health examination centers, and clinics into a comprehensive consulting package, which is then sold to major real estate developers and property management companies. Lanxi Health is involved throughout the entire process, from construction and property sales to subsequent operations.

Zhang Tao told the reporter, “If we were to independently develop and build new sports facilities or physiotherapy centers, it would require substantial investment in human and material resources, potentially leading to financial losses. However, by packaging these services into consulting solutions and selling them to real estate developers, we can generate profits. Moreover, our clients are not limited to Greentown Real Estate; we also serve other property developers beyond Greentown.”

After three years of development, Lanxi Health’s business model has become very clear. “We hope to rapidly scale up, so that we can form a true‘Lanxi Model’"In fact, what we are doing now cannot yet be called a model; it can only be described as a pilot program," said Zhang Tao meaningfully.

This Thursday (October 26) at 8:00 PM, Zhang Tao, Head of Product at Lanxi Health, will join VCBeat’s VB Group Interview to share insights with the community.“How Lanxi Health Manages Community Health”. At that time, the truth behind the booming phenomenon of real estate companies crossing over into the healthcare sector will be revealed to you; if you have any questions, you may alsoInterview Questions。

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