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Tencent and Shenzhen HRSSB Launch WeChat Medical Insurance Payment: Key Issues and Strategic Implications

Apr 27, 2016 08:00 CST Updated 08:00

On April 22, Tencent officially announced the signing of a strategic cooperation agreement with the Shenzhen Municipal Human Resources and Social Security Bureau. This agreement marks the long-awaited realization of mobile medical insurance payments within a defined scope. By linking their medical insurance cards to WeChat, insured residents in Shenzhen can complete online payments for both insurance-covered and out-of-pocket expenses with a single click during visits to designated hospitals. With this integration into the medical insurance system, WeChat has become the first mobile platform to enable end-to-end smart healthcare services. In light of this development, VCBeat conducted an exclusive interview with Ding Ke, Vice President of Tencent. The following are the key highlights from the interview:

1. How will the Shenzhen Human Resources and Social Security Bureau integrate with platforms such as WeChat, Mobile QQ, and news clients?

Ding Ke: The Shenzhen Human Resources and Social Security Bureau has currently launched an official WeChat account, providing services such as social security card issuance progress inquiries and appointment scheduling for Shenzhen residents. In the future, it will be integrated into WeChat City Services, Mobile QQ City Services, and the livelihood section of news client apps.

2. Could you briefly introduce WeChat's "City Services"?


Ding Ke: WeChat City Services is a key product in the implementation of Tencent’s “Internet Plus” strategy. It is a unified government and public service platform built on WeChat, enabling citizens to conveniently handle a range of services including healthcare, transportation, traffic management, social security, housing provident fund, and entry-exit affairs.


3. After launch, which hospitals will be the first to participate in the pilot program?


Ding Ke: Regarding the specific hospitals for the pilot program, Tencent is actively communicating with hospitals and the Human Resources and Social Security Department. It is expected that 2-3 influential hospitals in the Shenzhen area will be selected to carry out the pilot.


4. What initiatives has Tencent undertaken to connect with hospitals, and what progress has been made?


Ding Ke: Tencent has made many innovative attempts in the hospital sector, including:


  • WeChat Smart Hospital: The Smart Hospital leverages platforms such as the WeChat Official Account and WeChat Pay to provide patients with a range of services, including appointment registration, linking of medical consultation cards, in-clinic payments, and access to laboratory test reports.


  • City Services - Appointment Registration Platform: Provides residents with appointment registration services for regional hospitals;


  • Taking Shenzhen as a pilot city, connect the National Health and Family Planning Commission, hospitals, and patients to explore the integration of medical insurance and establish an online payment model for medical expenses;


  • Collaborated with the Guizhou Provincial Health and Family Planning Commission, Bailing Pharmaceutical, and regional hospitals to explore an "Internet + Chronic Disease Management" model, leveraging Tang Daifu and Tengai Doctor as entry points.


5. When is the WeChat medical insurance service scheduled to officially launch?


Ding Ke: After the WeChat medical insurance service completes testing and integration with the human resources and social security system, it must also be integrated with hospital billing platforms before going live. Pilot hospitals are expected to launch the service in two to three months.


6. What is the significance of “Internet + Human Resources and Social Security” to Tencent’s Internet + Healthcare strategy?

Ding Ke:

  • Leveraging Tencent’s powerful mobile internet application products, Shenzhen Human Resources and Social Security can rapidly integrate various public livelihood services into the mobile platform;


  • The collaboration between the two parties in mobile health insurance payments has greatly facilitated patients' access to mobile medical services;


  • Streamlined and integrated the medical insurance payment process, thereby expanding WeChat Pay’s use cases in the healthcare sector (specifically for medical insurance payments).


  • Cultivated the habit of users directly using medical insurance via their mobile phones.


VCBeat Analysis:

For internet companies entering the medical insurance payment sector, the two primary challenges remain: first, user adoption habits, and second, usability for elderly users. Firstly, it is essential to cultivate the habit of using mobile devices for medical insurance payments among users. Secondly, for elderly users, the steep learning curve inevitably leads to usage difficulties. These are unavoidable issues for both Tencent and Alibaba.

BAT’s Layout in “Internet + Healthcare”: Tencent Focuses More on “Connectivity”Tencent’s strategic positioning determines that it will not intervene in or alter the internal operational rules of various healthcare entities. Therefore, under this model of “shallow cooperation,” where each party fulfills its own responsibilities and meets its respective needs, Tencent faces relatively lower barriers in communicating with government departments. Coupled with its nationwide user base of 550 million accumulated through its social platforms, this advantage has enabled Tencent to take the lead in mobile payment integration for social security.