Home Yizhitong: Scaling Nationwide with a $140 Million Internet Healthcare Strategy from Appointment Booking

Yizhitong: Scaling Nationwide with a $140 Million Internet Healthcare Strategy from Appointment Booking

Apr 03, 2016 08:00 CST Updated 08:00

Eight years ago, Li Hao, the founder of Yizhitong, conceived the idea of creating an online appointment registration platform. At that time, on the eve of the launch of the new healthcare reform plan, Li had already foreseen the market opportunities that would arise from the substantial release of future medical demand.

In 2009, Li Hao led his team from Shenzhen to Tianjin, spending two years developing YiZhiTong, the nation’s first provincial-level appointment registration platform. The initial user base covered 15 Grade A tertiary hospitals in Tianjin, and within less than three months, YiZhiTong had established partnerships with all 39 Grade A tertiary hospitals in the city.

Nowadays, Yizhitong’s appointment registration model has basically covered the entire public hospital system in Tianjin and is operating smoothly. Yizhitong is planning to replicate this mature appointment registration model across the national market. Meanwhile, based on the substantial user traffic generated by its appointment registration services, Yizhitong will further expand into post-consultation chronic disease management, elderly care services, and other related businesses. In this process, Yizhitong’s business models, such as “medical escort + insurance,” are becoming increasingly mature.

From the Tianjin Model to Nationwide Adoption

Li Hao told VCBeat that in the field of appointment registration, relying solely on online promotion yields limited results in acquiring a large user base and delivering an optimal user experience; offline efforts are essential. This is because the majority of hospital patients are still middle-aged and elderly individuals, for whom offline services are more suitable. Moreover, the experience provided by offline human-assisted services is significantly superior to that of purely online approaches.

IMG_6692                                                        Li Hao

Li Hao stated that, in addition to the common appointment registration channels found on most platforms—such as official websites, mobile apps, WeChat service accounts, and unified telephone systems—Yi Zhi Tong also specifically provides two additional methods: television (via the EZTV Yi Zhi Tong channel) and self-service terminals (located in communities and hospitals), thereby offering suitable registration options for diverse population groups.

In addition, Yizhitong has established an offline service team since its inception. The size of this team in Tianjin has now reached over one hundred members. Their primary responsibilities include providing services to both patients and healthcare providers, such as patient guidance, verification of registration information, and management of appointment cancellations or changes. Furthermore, in addition to its online appointment scheduling platform, Yizhitong operates comprehensive service centers within tertiary hospitals.

Yizhitong has established a standardized workflow for this purpose: First, confirmation of physicians’ clinic cancellation schedules for the following day is completed by 6:00 PM each day. Second, patients who fail to keep their appointments are identified in advance. Patients with scheduled appointments are required to check in 15–30 minutes prior to their appointment time; any slots vacated due to no-shows are made available on-site to other patients. This approach ensures maximal utilization of physicians’ time and prevents the waste of public medical resources caused by no-shows.

Li Hao introduced that in individual hospitals with high patient traffic, the offline team of Yi Zhi Tong numbers more than 10 members. “In some hospitals, over half of the appointment slots are booked through Yi Zhi Tong. As a result, Yi Zhi Tong has become the hospital’s service center, information center, and patient guidance center.”

It is worth noting that all appointment registration services provided by YiZhiTong are free of charge. It is precisely this free model that has enabled YiZhiTong to rapidly capture the Tianjin market. According to Li Hao, 90% of appointment registrations in Tianjin are available through YiZhiTong.

Yi Zhi Tong’s development strategy is to first build a standardized platform, establish a strong presence in one region, and then expand to more regions. “Strong regional capabilities are also a major characteristic of the healthcare industry and the mobile health sector,” Li Hao told VCBeat.

Currently, the Yizhitong appointment registration platform has expanded beyond Tianjin, successfully replicating its model in seven cities across five provinces, including Beijing, Shenzhen, Guangzhou, Changsha, Huizhou, and Shenyang. It covers a population of 280 million, with 476 affiliated hospitals, 8,737 affiliated departments, and 28,800 affiliated doctors. The cumulative number of available appointment slots released has reached 137 million, with 29.65 million registered users. Cumulative telephone consultations have reached 80 million, and the average daily appointment volume stands at 18,000.

医指通 挂号覆盖范围

As Yizhitong replicates its appointment registration model across China, it has become highly adept at building offline platforms, while online user traffic requires significant strengthening. Li Hao disclosed to VCBeat that Yizhitong has entered into a deep strategic partnership with Xunyi Wenyao to jointly create an internet healthcare consortium. By leveraging Xunyi Wenyao’s substantial online user base, this collaboration aims to help Yizhitong rapidly reach a broader population. It is understood that Xunyi Wenyao, which generates 10 million daily user visits, will provide comprehensive support to the Yizhitong platform. Furthermore, Xunyi Wenyao made an equity investment in Yizhitong last November.

From Registration to In-Consultation and Post-Consultation Services

Having successfully amassed a massive user base through its integrated online-offline appointment registration model, Yi Zhi Tong has begun to expand into more in-depth services.

Currently, in addition to appointment registration, Yi Zhi Tong has taken the lead in China by launching three major services: hospital bed reservation, examination appointment, and medication pre-ordering. These services directly address three key pain points in current hospital healthcare. Examination appointments are primarily designed to facilitate care for patients from other regions, while medication pre-ordering mainly benefits patients with chronic diseases requiring long-term medication. These services are currently accessible through "Yi Guan Jia," the mobile application developed by Yi Zhi Tong.

医指通医管家

Data such as examination results and medications hold greater value compared to appointment registration information. However, these data are currently fully integrated with Yizhitong and the hospitals, with ownership residing with the hospitals. Due to policy restrictions and patient privacy protection considerations, Yizhitong has not engaged in the commercialization of medical data.

This is also the reason why Li Hao has avoided introducing venture capital too early. Li Hao frankly stated that he is concerned that venture capitalists focus too heavily on financial metrics, which would hinder Yi Zhi Tong from strengthening its core capabilities and developing an internet healthcare model best suited to China’s specific conditions. To date, Li Hao has invested over RMB 100 million of his own funds into Yi Zhi Tong. The mobile healthcare industry requires pioneers willing to learn through trial and error, a process that entails significant risks. Yi Zhi Tong will carefully assess the situation to choose the optimal moment for strategic moves. Currently, every penny is being spent where it matters most; only by solidifying the platform’s foundation can the company hope to win the battle in the internet healthcare sector. “Let others fire their bullets first,” said Li Hao.

Furthermore, by integrating appointment registration services with Grade 3A hospitals and deploying health monitoring devices to community terminals, Yizhitong pioneered the establishment of a tiered diagnosis and treatment system. Currently, Yizhitong’s cloud terminals have covered more than 600 community outlets in cities such as Tianjin and Guangdong.

In 2009, Yizhitong launched a synchronized appointment registration model for community hospitals and tertiary Grade A hospitals in Shenzhen. In 2013, Yizhitong deployed cloud terminals and health monitoring devices at community health centers in the Beichen and Heping districts of Tianjin, enabling community physicians to assist elderly residents with relevant tests. The hardware was procured by the government, while Yizhitong provided big data services.

By partnering with community hospitals, Yizhitong can avoid making substantial offline investments in heavy assets.

In 2014, Yizhitong ventured into the patient escort services sector, marking a new attempt at commercialization. “We only launched our patient escort services after accumulating a substantial user base and establishing the Yizhitong brand,” said Li Hao.

In 2015, Yizhitong began to diversify its commercialization strategies. For instance, it partnered with banks and insurance companies: China Construction Bank issued the Yizhitong Long Card at all its branches, acquiring millions of financial health members; it also engaged in deep collaborations with CITIC-Prudential Life Insurance and Ping An Insurance. Li Hao told VCBeat that Yizhitong had launched specialized insurance products in cooperation with insurance companies, which had already yielded considerable returns. “Patients who purchase accompanying consultation services are covered by related insurance products.”

It is reported that Yizhitong currently offers two main types of insurance products: the first is critical illness insurance covering 18 major diseases; the second is outpatient and inpatient follow-up insurance, which increases the reimbursement rate for patients, thereby reducing their out-of-pocket expenses.

The Persistence of YiZhiTong

Yizhitong has adhered to the “Three No’s” principle since its inception: no profiteering from the public, no additional burden on government finances, no participation in hospital service revenue sharing, and no paid priority appointment scheduling.

Throughout its journey, Yizhitong has faced numerous temptations. In 2013, when the business of adding appointment slots just began to emerge, some colleagues within the company suggested whether to join this business, but Li Hao firmly stopped it. In Li Hao's view, paid additional appointments are definitely not allowed by policy; even if such businesses were carried out, they would only generate quick profits and carry high risks, with the possibility of business suspension at any time, which is not a long-term development strategy. On the other hand, paid registration actually increases patients' medical costs, which goes against Yizhitong's original intention of "solving the difficulties and high costs of seeing a doctor."

During the period from 2014 to 2015, when venture capital investment in mobile healthcare was exceptionally hot, Yizhitong, which had entered the industry early, seemed not to be swept away by this surging wave of financing, appearing remarkably composed and calm. Reviewing this journey, Li Hao stated that he firmly believes internet healthcare is a middle- to long-distance race, not a sprint. Eight years of deep cultivation have endowed Yizhitong with the qualities needed for endurance running; thus, it is premature to determine who is stronger than whom at this stage.

Standing in 2016, as many mobile health companies have long since faded from prominence—with even well-funded startups collapsing due to setbacks in their appointment-booking services—Yizhitong is entering a pivotal year poised for breakthrough growth after years of accumulation. Geographically, Yizhitong is expanding from Tianjin to five provinces and seven cities, and ultimately to broader markets across China. In terms of business scope, it is extending beyond simple appointment registration to comprehensive healthcare services, including post-diagnosis chronic disease management and elderly care. Recently, leveraging its accumulated base of over 10 million chronic disease users, Yizhitong has taken the lead in launching an “Internet Plus Chronic Disease Management” platform strategy nationwide, accelerating its footprint in the internet healthcare industry—a move that has drawn significant attention from all sectors of society.

Li Hao told VCBeat that this year will mark a comprehensive push for Yizhitong after years of accumulation, leveraging capital to accelerate its growth. Over the next three years, Li hopes to list Yizhitong on China’s main board, noting, “After all, only Chinese people can truly understand and effectively address the challenges within China’s healthcare sector.”

Text | Bu Yan, Zhou Chao