Guangzhou Internet Hospital and Kangmei Pharmaceutical Forge Strategic Partnership to Upgrade 'Internet + Traditional Chinese Medicine' Services

In the Outline of the Strategic Plan for the Development of Traditional Chinese Medicine (2016–2030) issued by the State Council, the development of traditional Chinese medicine (TCM) was included at the level of national strategic planning for the first time, clearly stating that the TCM industry should become one of the important pillars of the national economy over the next 15 years. On July 1, 2017, the Law of the People's Republic of China on Traditional Chinese Medicine came into full effect, ushering in unprecedented opportunities for the development of TCM.

Against this backdrop, VCBeat (WeChat ID: vcbeat) learned on August 3 that the strategic cooperation signing ceremony between Guangzhou Internet Hospital, under WeDoctor, and Kangmei Pharmaceutical was held in Shenzhen. As an important practice in response to the national strategic plan for the development of traditional Chinese medicine (TCM), this strategic partnership will open new avenues for TCM development in the “Internet Plus” era and drive a new upgrade in Internet-enabled TCM industrial services.

Both parties announced that they will leverage their complementary strengths to actively promote the deep integration of internet-based medical consortia with smart pharmacies, explore a new model of remote diagnosis and treatment combining “Internet Medical Consortium + Retail Pharmacies,” and provide users with higher-quality and more convenient traditional Chinese medicine (TCM) products and services.

With the establishment of this strategic partnership, medical institutions within the Traditional Chinese Medicine (TCM) Medical Consortium affiliated with Guangzhou Internet Hospital will gain access to more efficient and high-quality TCM products and services. Meanwhile, patients can consult online via the Guangzhou Internet Hospital platform and, upon receiving an electronic prescription from a physician, opt for “TCM decoction” or “TCM delivery” services. This allows them to have medications delivered directly to their doorstep, significantly reducing the time required for medical consultation and medication acquisition, ensuring the quality of TCM decoctions, and providing greater convenience compared to offline visits.

Furthermore, as outlined in the agreement, Kangmei Pharmaceutical’s offline stores will be integrated into the Guangzhou Internet Hospital’s “Pharmacy-Clinic-Store” platform. This integration will transform these outlets from simple drug sales centers into comprehensive community health hubs offering services such as appointment scheduling, online consultations, and chronic disease management. Additionally, this initiative will facilitate rapid access to high-quality traditional Chinese medicine (TCM) resources within the TCM Medical Consortium, continuously enhancing the TCM service capabilities of the stores, improving the offline patient experience, and supporting the realization of its industrial blueprint for a “Smart + Grand Health Industry.”

The advancement and implementation of the aforementioned strategic cooperation have been facilitated by each party’s accumulated resources and in-depth operational expertise in the healthcare and pharmaceutical sectors. On May 15 this year, Guangzhou Internet Hospital jointly established China’s first Traditional Chinese Medicine (TCM) Medical Consortium with Guangdong Provincial Hospital of Traditional Chinese Medicine and Bao’an Hospital of Traditional Chinese Medicine (Group), exploring new pathways for the development of an “Internet + TCM Medical Consortium” model. Currently, Guangzhou Internet Hospital’s services cover all 21 prefecture-level cities in Guangdong Province, connecting more than 100 key hospitals within the province, as well as over 2,400 hospitals across 29 provinces and municipalities nationwide, with a network of more than 280,000 physicians.

As China’s largest internet healthcare platform, WeDoctor began exploring the new “pharmacy + clinic” model in March 2016, leveraging its internet hospital platform to upgrade traditional pharmacies and establish a new business format of “pharmacy-clinic” based on internet medical services. On June 24, 2017, Guangzhou Internet Hospital entered into a strategic partnership with Guangzhou Pharmaceutical Holdings Limited (GPHL) and Heshuntang, comprehensively laying out the internet pharmaceutical and health industry in the Guangdong-Hong Kong-Macao Greater Bay Area by leveraging complementary advantages in medical consortia, centralized drug procurement, pharmacy-clinics, and drug distribution.

Kangmei Pharmaceutical is a nationally leading, precision-service enterprise with a full industrial chain in traditional Chinese medicine (TCM), built upon an integrated system of “Greater Health + Greater Platform + Big Data + Greater Services.” Currently, Kangmei Smart Pharmacies have been successfully operated in Guangzhou, Shenzhen, Beijing, Chengdu, and other cities. The company has signed contracts with more than 170 medical institutions, including the Guangdong Provincial Hospital of Traditional Chinese Medicine, the First Affiliated Hospital of Guangzhou University of Chinese Medicine, and the Guang’anmen Hospital of the China Academy of Chinese Medical Sciences. It has established central urban pharmacies in Guangzhou, Shenzhen, Beijing, Chengdu, and other locations, processing up to 20,000 prescriptions per day. To date, it has handled a cumulative total of 2.5 million prescriptions, serving approximately one million patients, thereby providing the public with more comprehensive and convenient health services and experiences.