Yinchuan, a historic and culturally renowned city, has long been hailed as the “Jiangnan beyond the Great Wall” and a “land of fish and rice.” Its profound historical heritage has not hindered the city from reforming and innovating its business models and industrial landscape amid the vigorous development of the internet and big data. Under the top-level design of Yinchuan’s smart city initiative, internet hospitals have emerged as one of the city’s standout highlights.
On March 19, the Yinchuan Municipal People’s Government held a centralized signing ceremony for a new batch of internet hospitals. At the ceremony, VCBeat(WeChat: vcbeat) The reporter witnessedDXY, PKU Healthcare IT, Chunyu Doctor, Medlinker, Jinglian Technology, Qilekang, Giant Network, Daxiang Doctor, Taoyibao, etc.15 Nationally Renowned Internet Healthcare Companies Sign Agreements with the Yinchuan Municipal Government, Officially Obtain Internet Hospital Licenses, and Settle in the Yinchuan Smart Internet Hospital Base.With this addition, along with the previously established Haodf Online and WeDoctor, the number of internet hospitals in Yinchuan has reached 17.

The entrants in Yinchuan’s Internet Hospital and related services now include nearly all the major players in China’s digital health sector, making it the largest cluster of internet hospital industries in the country. What has led leading Chinese digital health companies to establish their roots in Yinchuan, a city in western China?
Breakthrough Policies Safeguard Internet Hospitals
Although Yinchuan is located in western China, it has taken a national lead in smart city development by leveraging the policy advantages of “pilot initiatives” under the Ningxia Inland Open Economy Pilot Zone and partnering with renowned enterprises. Supported by next-generation information technologies such as big data, the Internet of Things (IoT), and cloud computing, Yinchuan pursues three core objectives: enhancing urban management, delivering public benefits and convenience to residents, and fostering a smart industry ecosystem—these constitute the main components of “Smart Yinchuan.” Against this backdrop, Yinchuan, as one of the second batch of national pilot cities for healthcare reform, has launched its “Internet Plus Healthcare” exploration. This initiative is underpinned by big data and new “Internet Plus” technologies, driven by policy innovation, and oriented toward improving people’s livelihoods.
As one of the first cities in China to pilot smart internet-based healthcare, the Yinchuan Municipal Government has introduced a series of measures to facilitate the establishment of internet hospitals. At the press conference, the Yinchuan Health and Family Planning Commission presented administrative and supervisory regulations and relevant policies for Yinchuan’s internet hospitals. Last year, Yinchuan took the lead nationwide in issuing policy documents such as the “Yinchuan Internet Hospital Management System,” the “Yinchuan Internet Medical Institution Supervision and Administration System,” and the “Yinchuan Internet Hospital Administrative Measures.”
Yinchuan is the first provincial capital city to replace the dual licensing requirements for the establishment and practice of conventional internet hospitals with a single filing-based system, while further expanding the scope of medical services provided by internet hospitals and simplifying the application and processing procedures for physicians’ multi-site practice across provinces. Yinchuan’s breakthrough policy framework, consisting of “one measure and two systems,” has filled the regulatory gap for internet hospitals in China and initiated a filing-based system for physicians’ multi-site practice, thereby safeguarding the legitimate practice of online physicians and promoting the rapid and healthy development of internet hospitals.
In his address, Bai Shangcheng, Mayor of Yinchuan, explained that the city’s development of the “Internet + Healthcare” industry is a strategic choice to deepen the “Health and Elderly Care in Yinchuan” brand. As an important urban center in Northwest China, Yinchuan is also a pilot city for national public hospital reform and smart city construction.
At the conference, Guo Baichun, Deputy Mayor of Yinchuan City, stated: “The emergence of internet hospitals can effectively alleviate the long-standing problems of difficult and expensive access to medical care. By enabling doctors from Beijing, Shanghai, Guangzhou, and other regions to engage in multi-site practice through internet hospitals, their fragmented time is consolidated, effectively doubling or tripling the available physician resources and increasing the supply of healthcare services. Meanwhile, these high-quality medical resources are extended to the central and western regions, where healthcare resources are relatively scarce, thereby benefiting local residents by eliminating the need for arduous travel and reducing non-medical expenses incurred during diagnosis and treatment.”
In December last year, the first Yinchuan Internet Hospital, Haodf Online Smart Internet Hospital, was officially launched. It enables online consultations with medical experts, referrals, and multidisciplinary consultations and surgeries for complex and critical cases. Since its opening, the Yinchuan Smart Internet Hospital has attracted significant attention within the industry, drawing numerous large healthcare institutions and enterprises to seek collaboration in Yinchuan. Building on this foundation, the Yinchuan Municipal Committee of the Communist Party of China and the Yinchuan Municipal People’s Government have begun to vigorously develop the “Internet + Healthcare” industry, striving to create a shared, open, and mutually beneficial Yinchuan Internet Hospital base that leverages internet technologies to comprehensively enhance the level of medical services in the region.
Integrating with Medical Insurance: Another Breakthrough in the "Three-Medical Integration"
For a long time, the industry has considered health insurance reimbursement to be the biggest bottleneck for internet hospitals. At this signing ceremony, Yinchuan City introduced several additional policies to support internet hospitals, building upon the foundation of “One Measure and Two Systems” by once again releasing major new initiatives."Access and Grading System for Licensed Physicians in Internet Hospitals," "Detailed Implementation Rules for the Administration of Internet Hospitals in Yinchuan City (Trial)," and "Administrative Measures for Personal Medical Insurance Accounts and Outpatient Pooling in Internet Hospitals in Yinchuan City (Trial)."
This time in Yinchuan CityInclusion of internet hospitals in the list of designated medical institutions for health insurance, comprehensive integration of e-prescriptions with pharmacies under the health insurance system, and allowance for using personal health insurance accounts to pay for online consultation fees,Granting internet hospitals the authority to conduct professional title evaluations,Designated regions and capped amounts: Use internet hospitals for pooled account payment of online consultation fees...and other pilot programs. This is the first relatively comprehensive regulatory system for internet hospital management in China, as well as the policy support framework with the most innovations and the strongest backing.
In the Measures related to medical insurance, Yinchuan City has ensured the legal status of electronic prescriptions. Insured individuals can not only use their personal medical insurance accounts to directly pay for online consultation fees, but also have online consultation fees that fall within the scope of the Basic Medical Insurance’s “Three Catalogs” reimbursed by medical insurance. Previously, patients covered by medical insurance had to visit hospitals in person to access pooled fund benefits. By integrating internet hospitals into the medical insurance system, these facilities now receive policy treatment equivalent to that of physical hospitals, achieving the integration of healthcare services, medical insurance, and pharmaceuticals. This represents a significant breakthrough in healthcare reform.
You Feng, Director of the Yinchuan Municipal Human Resources and Social Security Bureau, stated regarding the integration of internet hospitals into medical insurance policies: “Medical care, pharmaceuticals, and medical insurance are mutually reinforcing. The reform and development of the healthcare system cannot proceed without the support of medical insurance. Internet hospitals represent a favorable business model; they can not only reshape medical resources but also optimize their allocation. The operation of Haodaifu Internet Hospital in Yinchuan has validated this point. However, our preliminary investigations revealed that due to certain policies not yet being fully implemented, the full potential of internet hospitals has yet to be realized. For example,”Unless issues such as the recognition of internet hospitals, the integration of electronic prescriptions with medical insurance, and professional title evaluations are resolved, internet hospitals will remain marginalized healthcare institutions, with their full potential yet to be realized.“Therefore, in collaboration with the National Health and Family Planning Commission, we have introduced a series of policies—some implemented nationwide and others piloted—to support the development of internet hospitals.”
Yinchuan City is at the forefront of China in implementing pilot policies for internet hospitals.Six policies have been issued to date regarding internet hospitals.This year, the Yinchuan Municipal Health and Family Planning Commission collaborated with the Big Data Bureau to strengthen the development of an online regulatory system, enabling full-process oversight of internet hospitals.This year, the Yinchuan Municipal Health and Family Planning Commission will alsoCollaborate with the Municipal Development and Reform Commission and other relevant departments to introduce policies supporting the development of ancillary institutions, such as third-party diagnostic centers, therapeutic (surgical) centers, and rehabilitation and healthcare centers, thereby building an ecosystem for internet hospitals.
Sparking the 2017 Surge in Internet Hospital Development
For most internet healthcare companies, regardless of their initial entry point or which segment of the medical process they first targeted, the ultimate goal is to establish a closed-loop internet healthcare system and enable online diagnosis and treatment. Whether it is Weiyi (Guahao.com), which addressed patients’ pain points in appointment registration; Haodf Online, which started as an information platform for doctors; DXY, which began with doctor communities and medical news; or Qilekang, a pharmaceutical e-commerce player, all have converged on the path toward building internet hospitals.
Diagnosis and treatment are the core of healthcare. Only by obtaining the "ticket" for legitimate online diagnosis and treatment through an internet hospital can internet healthcare companies complete this closed loop and secure the capital needed to continue their operations. The gathering of internet healthcare companies in Yinchuan this time will set off a new wave of enthusiasm for the development of internet hospitals in 2017. Moreover, the Yinchuan Model will also provide otherUnderdeveloped Medical ConditionsThe region has demonstrated a model effect, with internet hospitals becoming a key driver in achieving “tiered diagnosis and treatment.”