Sichuan's National Team Behind Healthcare Innovation Submits IPO Prospectus
Signing Ceremony of the Proactive Health Industry Alliance
“The original intention behind the establishment of the Proactive Health Industry Alliance stemmed from the founding members’ profound understanding of the challenges facing our nation’s healthcare sector.”
“People-Centered Active Care” Service Model (PCAC, hereinafter referred to as “Active Health”) represents an advanced healthcare service model characterized by higher quality, lower costs, and improved patient experience. Leveraging information technology, “Active Health” establishes continuous, lifelong health data records to achieve proactive and precision healthcare services. Furthermore, through adjustments in medical payment mechanisms, it incentivizes both healthcare providers and patients to adopt value-based care and preventive behaviors.Meanwhile, a service model centered on family physicians, team-based care, health management, disease prevention, and coordinated, continuous specialty care is being established. This integrated, three-pronged approach aims to achieve the Triple Aim long pursued in healthcare.
Proactive health aligns with the spirit of the National Outline for Medium- and Long-Term Science and Technology Development Planning, implements the strategy of “shifting the focus of disease prevention and control upstream,” and serves as a measure to achieve “shared health, safe families, a harmonious society, and a prosperous nation.” Furthermore, it represents a healthcare service model that alleviates the shortage of medical and health resources, significantly reduces healthcare expenditures, and contributes to building a harmonious society.
“The original intention behind the establishment of the Proactive Health Industry Alliance stemmed from the founding members’ profound understanding of the challenges facing our nation’s healthcare system. In recent years, keywords such as ‘Health for All’ and ‘Healthy China’ have increasingly come into public view. The central government has specifically issued the Outline of the Healthy China 2030 Plan, while the new healthcare reform has entered its seventh year. It is evident that the state’s attention to healthcare and health has reached an unprecedented level.”
To achieve the strategic goal of universal health, the healthcare industry faces three major challenges:
First, the disease spectrum in society is undergoing significant changes, with the cost of chronic disease treatment gradually accounting for the majority of healthcare expenditures. However, China’s current healthcare service system remains hospital-centric, lacking the capacity and resources to manage such shifts in population health needs.
Second, global healthcare expenditure continues to rise, and the trend of population aging is inevitable. Countries around the world are seeking the best ways to alleviate the burden on their healthcare systems. Even the United States, the world’s most developed economy, has recognized that a healthcare-centric system is unsustainable. As the developing country with the largest population and the second-largest economy globally, China faces the greatest pressure from its healthcare burden.
Third, over the past two decades, the growth in both the size and income of the middle class in Asia, particularly in China, has been remarkable. Consequently, demand for medical services is no longer confined to mere disease cure but has evolved toward higher expectations for service quality and patient experience. However, the current healthcare delivery system struggles to meet patients’ diverse and multi-layered needs. These challenges are not unique to China but represent significant hurdles faced by many other countries worldwide. Therefore, resolving these issues is not only a priority for China but also draws close attention from the international community.
Centered on these three challenges, how can we transform the healthcare service system to meet the needs of the general public while simultaneously developing emerging health industries? In our exploration, we have observed that various stakeholders within the medical sector—including the government, healthcare institutions, experts and scholars, and enterprises—are all engaged in their own exploratory efforts. However, we find that these entities struggle to transcend their individual perspectives and resource constraints to think about the issues in a holistic manner.
The transformation of healthcare service models and the genuine development of the health industry cannot be achieved by any single institution or enterprise. Governments, medical institutions, and enterprises all face their own challenges and resource limitations. Therefore, the only viable path forward lies in bringing together top talent, fostering innovative collaboration, and promoting coordinated development.
“Therefore, with strong government support, Sichuan has made bold attempts in medical innovation. Led by the Sichuan Provincial Health and Family Planning Commission and organized by the Sino-US Health Summit, the Proactive Health Alliance was jointly initiated by China Electronics Technology Software & Information Co., Ltd., Sichuan Provincial People’s Hospital, and Proactive Healthcare Management Co., Ltd. At the 2016 National ‘Internet + Medical Health’ Innovation and Entrepreneurship Conference, hosted by the Chinese Health Information Association and the Sichuan Provincial Health and Family Planning Commission, two agreements—the Strategic Cooperation Agreement on Promoting a People-Centered Proactive Health Service Model and the Strategic Cooperation Agreement on Promoting Proactive Health Big Data—were signed respectively, marking the initial concrete steps of the Proactive Health Alliance, witnessed by Yang Xingping, Vice Governor of Sichuan Provincial People’s Government, and He Lvzhang, Deputy Secretary-General of the Provincial Government,” Liu Hongdou told VCBeat (WeChat ID: vcbeat).
Soon, the initiators of the alliance received positive responses from government bodies, enterprises, and medical institutions. After in-depth negotiations and mutual assessments with the Active Health Alliance, these entities decided to join the Active Industry Alliance. The first batch of members includes: Chengdu Medical City in Wenjiang District, Chengdu; Sichuan Provincial People’s Hospital; Sichuan Railway Investment Information Technology Industry Investment Co., Ltd. (hereinafter referred to as “Tietou Information”); CETC Software & Information Service Co., Ltd. (hereinafter referred to as “CETC Softinfo”); China United Network Communications Co., Ltd.; Chengdu International Medical Port Pharmaceutical Co., Ltd.; Active Medical Management Co., Ltd.; Youkang Medical Management Co., Ltd.; and Beijing Beiken Hengye Technology Development Co., Ltd.
It is understood that the China-US Health Summit, a key organizer of the Active Health Alliance, was founded in 2005. Initiated by Professor Liu Yuanli, a renowned expert in China’s healthcare reform and current Dean of the School of Public Health at Peking Union Medical College, Chinese Academy of Medical Sciences, it is an international non-profit non-governmental organization. Through high-level strategic dialogues, leadership development education and training programs, and applied research, it promotes international exchange and cooperation in the health sector, fostering the development of health causes in China and worldwide. The current Chairman and Secretary-General is Professor Ma Jing.
“Only through extensive collaboration, deep integration, and bold innovation can Sichuan contribute its experience to China’s healthcare reform. Initially, we had not envisioned forming an alliance; however, when the right people came together and responded to a shared call, the alliance naturally took shape,” said Liu Hongdou.
Liu Hongdou, Deputy Secretary-General of the Organizing Committee for the China-US Health Summit and one of the key planners of the Active Health Alliance, specializes in investment research within the healthcare industry. He is also a co-founder of a medical service management company. With extensive corporate experience, he previously oversaw human resources, strategic management, and IT at a leading publicly listed Chinese pharmaceutical R&D and manufacturing services enterprise. He is also a renowned expert in human resource management in China.
From the perspective of the members of the Active Health Industry Alliance, which include government entities, healthcare institutions, research think tanks, and enterprises, what are the respective roles played by these different stakeholders within the Alliance? Furthermore, how does the Active Health Industry Alliance assist relevant parties in building an “active health” service model while simultaneously achieving their own development goals and addressing their specific needs? A reporter conducted further interviews to explore these questions.
China Electronics Technology Group Corporation (CETC), the parent company of CETC Software & Information Services Co., Ltd., is a key state-owned enterprise under the direct administration of the central government. Established with the approval of the State Council on the basis of the electronic research institutes and high-tech enterprises formerly affiliated with the Ministry of Electronics Industry, CETC has extensive experience in constructing major national electronic information systems for both military and civilian applications, as well as in international economic, technical, and cooperative exchanges in the field of electronic information and related sectors.
CETC Software and Information Technology will collaborate with alliance members to build a healthcare industrial internet ecosystem centered on big data, with a GBC (Government-Business-Consumer) model targeting government agencies, industries, and residents.
Sichuan Railway Industry Investment Group Co., Ltd., the parent company of Sichuan Tietou Information Technology Industry Investment, is a state-owned super-large investment group established with capital approved by the People’s Government of Sichuan Province. It focuses on the investment, construction, operation, and management of key railways and expressways, while also engaging in engineering construction, clean energy, mineral resources, logistics and trade, new-type urbanization, transportation informatization, financial services, and modern agriculture.
The development of healthcare is a major livelihood project. Sichuan Railway Investment Group has identified it as its corporate social responsibility and a key driver for industrial transformation. By joining the Active Health Alliance, the group will accelerate its understanding of the background and trends in the healthcare industry, achieving resource interoperability and information sharing with experts, scholars, medical institutions, and healthcare enterprises within the alliance. Tietou Information will be responsible for investing in and operating the medical big data platform.
Sichuan Provincial People’s Hospital is among the first batch of national Grade A tertiary hospitals. With a 75-year history of development, it serves as the leading public medical institution in Sichuan Province and a clinical teaching base for higher medical education institutions. The hospital will provide top-level clinical support for the transition toward proactive health service models, further integrate its own development with big data platforms, innovation and translation centers, and technology- and service-oriented innovative enterprises, thereby enhancing the efficiency of medical consortium operations, facilitating the downward allocation of high-quality medical resources, and accelerating the transformation of service delivery models.
Proactive Healthcare Management Co., Ltd., founded by a well-known domestic listed pharmaceutical services company, is positioned to become a leading new-type healthcare service provider. It will design and invest in novel medical institutions based on the alliance’s proactive health model.
The Proactive Health Alliance primarily focuses on theoretical research, strategic planning, and technical guidance related to “proactive health.” It also assists alliance members with domestic and international resource matching, communication and coordination, as well as planning and design. For governments, the Alliance supports top-level design and pathway planning for the transformation of healthcare service models, provides consulting on the development of the health industry, and facilitates communication and liaison with enterprises. For public medical institutions, the Alliance aids in transformation design, education and training, and resource matching. For enterprises and startups, the Alliance helps define their positioning and development direction within the health industry based on their existing strengths and specialties, and facilitates communication and collaboration with government bodies and medical institutions.
Can other enterprises or institutions join the Proactive Health Industry Alliance, and what are the requirements?
“The Proactive Health Industry Alliance is an open organization that welcomes more dedicated academic experts, research institutions, enterprises, medical facilities, and industrial parks to join. The core philosophy of the Alliance is ‘Those who share the same vision walk together; those with capabilities walk together; those who contribute walk together.’ ‘Shared vision’ means endorsing the concepts and values of proactive health; ‘capabilities’ refer to possessing unique strengths and expertise to advance proactive health; ‘contribution’ entails altruism leading to mutual benefit, jointly building a ‘Proactive Health’ ecosystem, and striving to better serve the nation’s health needs. Friends interested in the cause of proactive health are welcome to contact us directly.”Liu Hongdou said.
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