Kingdee Healthcare Launches Cloud Hospital Solution to Break Down Information Barriers Between Doctors and Patients

By 21st Century Business Herald

On August 13, Kingdee Medical, in collaboration with Microsoft and Kaintech, launched a Cloud Hospital solution and presented a cloud architecture upgrade plan for hospital informatization to one hundred hospital administrators, heads of information technology departments, and heads of finance departments.

Li Chaoming, Chief Technology Officer of Kingdee Medical, stated in an interview with reporters: “Healthcare informatization in China has largely followed a siloed construction model, characterized by the initial deployment of individual systems followed by continuous layering. This approach entails high investment costs for hospitals while yielding low operational efficiency. Therefore, we have introduced a Cloud Hospital architecture to break this paradigm and facilitate the transformation of traditional business applications to cloud-based architectures.”

Kingdee Medical’s cloud-architecture-based hospital information platform encompasses six key areas: integrated operational management, hospital mobile work platform, medical big data applications, cloud hospital information platform, and intelligent cloud infrastructure. The components and services provided include integration, development, process engine, messaging, and operations and maintenance services.

According to Li Chaoming, the pricing for the Cloud Hospital solution will be adjusted based on hospital needs, with the current average price standing at RMB 6 million.

From an industry perspective, the late start of healthcare informatization in China has resulted in a large number of competitors in the medical IT sector, extremely low market concentration, and the absence of any clearly dominant industry leader.

Hospital informatization has also seen significant policy benefits this year. In June, the State Council executive meeting discussed and determined measures to develop and regulate the application of health and medical big data, including promoting joint construction and sharing of health and medical data, formulating and improving laws, regulations, and standards. It also proposed prioritizing convenient and people-oriented applications such as online appointment scheduling and triage, mutual recognition and sharing of examination and test results, and cross-regional settlement of medical insurance payments through networked systems, while advancing telemedicine and intelligent health medical devices.

“There are no longer any market gaps in China. For enterprises to break through, they must innovate and achieve breakthroughs in technology and services,” said Yin Zhiguo, Executive Deputy General Manager of Kingdee Medical. “Although policies are promoting the interconnectivity of medical information, hospitals lack the incentive to share data. Therefore, a scenario dominated by a single player or a few major players will not emerge in the short term. Industry participants are continuously upgrading their technologies to facilitate the establishment of industry standards.”

Notably, in late July, Hong Kong-listed Kingdee International announced the privatization and restructuring of three internet-based businesses—Qianhai Baidi, Kingdee Medical, and Yunzhijia—for a total consideration of RMB 107.4 million. Subsequently, Kingdee will refocus its business priorities on its core Enterprise Resource Planning (ERP) operations.

Regarding the reasons for selling the equity interests in these three internet businesses, Kingdee International stated that it was “due to the impact of long-term, sustained investments on the listed company’s profits.”

Unlike sectors characterized by free competition, such as retail, food and beverage, and taxi services, healthcare institutions are marked by a high degree of professionalism and complexity, as well as administrative monopoly. According to Chen Dengkun, General Manager of Kingdee Medical, the healthcare industry cannot simply replicate internet business models, and burning cash is an inadvisable strategy for user acquisition. Mobile health initiatives must balance the needs of hospitals, patients, and physicians alike.

Previously, Chen Dengkun, General Manager of Kingdee Medical, stated that internet healthcare should begin with “Hospital Internet,” helping hospitals achieve mobile internet integration, connecting patients and healthcare professionals, and linking remote diagnosis and treatment with the tiered diagnosis and treatment system. On this basis, innovative medical service models driven by the internet should be developed to provide patients with more value-added services and vertical health services tailored to specific patient segments.

Hospitals, patients, and physicians are all stakeholders that mobile internet hospitals must balance.