YiJiaYi Xu Yi vs. MicroNanotech Wang Zhanhui: Divergent Paths of Software and Hardware in Connecting Doctors and Patients (Xingdong Xiangyi Medical Salon Public Lecture #13)

Event Name:Xingdong Xiangyi HuiIssue 1Public Lecture

Event Dates: November 7–8, 2015

Organizers: Legend Star, VCBeat, BlueRun Ventures | Featured Speakers:

Xu YiFounder of Yijiayi

Wang ZhanhuiCEO of Micro-Nano Core Technology

Below are highlights from the guest speakers’ remarks. For the full presentations, please follow VCBeat’s WeChat account (vcbeat).



Xu Yi: Opportunities in Heavy-Asset Models

1. Every segment of the internet healthcare industry is highly saturated, with diverse entry points targeting various user groups, including patients, the general public, and special populations. Among patients, there are further distinctions based on severity (mild vs. severe) and duration (acute vs. chronic). Our strategic philosophy is guided by four principles: first, we will not attempt to cover every area; second, the business should have high barriers to entry, making it inaccessible to just anyone; third, there must be inelastic demand; and fourth, the model should be profitable if executed successfully. Accordingly, our team adheres to a “Four Don’ts” policy: we do not pursue comprehensive but unfocused solutions, we avoid low-barrier markets, we steer clear of areas with weak demand, and we reject projects that focus solely on user acquisition without achieving profitability.

2. Oncology is an ideal niche market, characterized by numerous pain points, limited competition from similar products, a substantial market size, and a clear growth trajectory. Additionally, this market features high barriers to entry, and customers are highly price-insensitive, with very few complaints regarding pricing.

3. Many of our users are elderly and not typical internet users. When we compared our user base with that of major platforms like Chunyu Yisheng a few months ago, the overlap was only one in a thousand. Oncologists are short on time, not money; nor do they lack patients in the public eye. The greatest challenge for us is securing their limited time and ensuring their active engagement on our platform. Some argue that the oncology patient population is small, making the market too limited—a view I disagree with. There are over 3 million new cancer cases annually, with a total prevalent patient population of approximately 15–20 million. This extends to around 60 million immediate family members, and an even larger number of individuals who are concerned about or affected by the disease.

4. In terms of scope, we initially debated whether to focus on pre-consultation or post-consultation services, but ultimately decided to cover the entire patient journey. This decision was driven by the fact that the distinction between pre- and post-consultation phases is not absolute for oncology patients. Moreover, given the significant effort required to acquire users, it would be wasteful to limit engagement to a single interaction. While post-consultation services address the issue of low frequency, relying solely on them is challenging due to the closed entry point, as only physicians can enroll patients. By maintaining an open approach to pre-consultation services, we aim to resolve both the low-frequency issue in the pre-consultation phase and the closed-access problem in the post-consultation phase, thereby enhancing our competitiveness. We position ourselves as a doctor-patient platform dedicated to the oncology field, covering the full spectrum of cancer care, and serving as a mobile assistant for specialist physicians.

5. How to Meet the Needs of Both Doctors and Patients? Doctors should be given the space to leverage their expertise, and patients should be matched with appropriate physicians; in this way, there can never be too many doctors. After consultation, patients also have a strong need for continued engagement. Many patients seek medical care away from their home regions. For instance, after surgery, when a doctor prescribes a chemotherapy regimen, patients strongly desire to maintain contact with their physician. However, two-thirds of doctors do not provide their phone numbers. Among those who do, many do not answer calls, and even if they do, they may not recall who the caller is. Doctors are not unwilling to establish connections with patients; rather, they are willing but lack the capacity to do so.

6. Prior to consultation, we aim to become the most trusted intermediary for oncology patients and doctors across China. For medical visits in major cities like Beijing, Shanghai, and Guangzhou, patients can consult with several doctors remotely without leaving home, choose the most reliable one, and then travel to Beijing if necessary. When patients are unsure whom to select, we provide personalized recommendations. This approach improves efficiency for physicians and helps them realize their professional value, creating a win-win situation for both doctors and patients. Therefore, our goal is to replace the need for personal connections.

7. As a bridge between doctors and patients after consultations, our platform enables physicians to easily access patient data post-discharge without needing to share personal contact information. For users, this maintains a communication channel with their doctor. Furthermore, once an electronic medical history is established, it provides significant convenience for both the current attending physician and any future healthcare providers.

8. How to address the issue of low engagement? The key lies in optimizing post-consultation features. We have created digital business cards for each physician; scanning the QR code instantly directs users to WeChat. Given that hospital network signals can be poor, patients may struggle to download standalone apps. In contrast, WeChat presents a much lower barrier to entry, allowing patients to bind their accounts directly within the app and download any necessary software later at home. If patients provide comprehensive information, physicians can even view treatment curves, including data on blood tests, liver function, renal function, tumor markers, pain scores, and more.

9. How to Build Barriers? By Leveraging Our Asset-Heavy Business Model. First, why do we have a large number of high-quality physicians? Because 90% of them were invited through face-to-face outreach. A key aspect of our app is establishing strong relationships between physicians and patients, as well as among physicians themselves. In the early stages, we substituted manual efforts for internet-based scaling, personally guiding both physicians and patients to cultivate their usage habits on Yijiayi.

10. It is nearly impossible to solve complex problems with a light-touch model; no one has succeeded in doing so. Conversely, using a heavy-touch model to address minor issues is unsustainable. A light-touch model for minor issues can serve as an entry point for user acquisition. However, applying a heavy-touch model to complex problems is worth exploring and discussing. What makes our model “heavy”? First, as mentioned earlier, we employ an invitation-only system for physicians. Second, we acquire users through offline channels. Third, we have substantial back-end involvement. Our patients are not entirely self-matched; if doctors were automatically matched with many low-value patients, they would quickly disengage from the platform, as this would offer no advantage over the 80 walk-in patients they see daily. Therefore, we implement back-end triage. Fourth, we provide extensive offline support. Finally, we have a professional team.

11. Only in oncology will patients not perceive high costs when connected with high-quality physician resources; only in oncology do patients seek overseas medical care, undergo genetic testing, participate in new drug clinical trials, and purchase medications out-of-pocket. For early-stage projects, it is advisable to temporarily avoid collaborating with pharmaceutical companies, as their stringent requirements often transform your project into a highly customized endeavor. Our current objective is to reach the opposite summit as quickly as possible, ignoring any money along the way unless it is exceptionally easy to obtain. We should only pick up money that requires minimal effort; anything demanding significant exertion should be left behind.

12. The question of who pays: In fact, many vertical sectors offer substantial opportunities for developing profitable business models. First, the patient-provider service model generates stronger willingness to pay in highly specialized verticals; for instance, patients are willing to pay for oncology-related services. Second, the oncology field involves numerous related resources that need to be connected with users, allowing platforms such as Yijiayi to provide recommendations. Third, there is media value, given our access to tens of thousands of verified physicians and a large patient base. Fourth, small-data analytics: many stakeholders are willing to pay for reports generated from the data we currently collect.

Wang Zhanhui: The Hardware Path

1. We are a traditional medical enterprise. Our founding team originated from the Chinese Academy of Sciences, and we initially focused on conventional blood biochemistry testing, more precisely classified as in vitro diagnostics (IVD). We have now achieved significant miniaturization and intelligent integration of our products, and we are actively exploring synergies with online digital tools.

2. We are developing an intelligent medical diagnostic system based on microfluidics technology. Major players such as Siemens, GE, Philips, and Samsung are investing heavily in R&D in this field. In the coming years, we may see microfluidics-based diagnostic devices enter clinical settings and even reach the consumer home level.

3. The earliest microfluidic technologies were predominantly used in the aerospace sector, where analytical testing must be conducted within extremely confined spaces, making it impractical to deploy traditional large-scale equipment. Traditionally, analytical procedures relied on various bottles and containers; however, microfluidics now enables these analytical and reaction processes to be performed on miniaturized, portable devices that can even be worn on the body. This portability represents its most significant advantage.

4. Our entry point is blood biochemical analysis. The equipment used for biochemical analysis in Grade 3A hospitals is very large, ranging from the size of a desk to that of a washing machine. In contrast, our professionally developed medical-grade biochemical analyzer weighs less than two kilograms and features built-in 3G, Wi-Fi, and Bluetooth connectivity. Upon startup, the device automatically connects to a cloud server, through which all data is transmitted.

5. Our product undergoes extensive testing prior to market launch, with key performance indicators of the device being nearly on par with those of large-scale systems from Roche and Olympus. Consequently, the stability and reliability of its results are comparable to theirs.

6. Our product is also very easy to use, requiring only about three to four drops of blood, and detailed personal blood biochemistry test results can be obtained in approximately 10 minutes. Both fingertip blood and arterial blood samples are acceptable. Fingertip blood sampling is particularly convenient for home users, with a method very similar to that of standard glucose meters; however, in addition to measuring blood glucose, it can also assess blood lipid levels, uric acid levels, liver function, kidney function, and more. Backend communication functions are implemented via cloud servers. Currently, our devices have been installed in medical institutions across China, including in Karamay, Xinjiang, and even Shigatse, Tibet, with installations in approximately 1,000 healthcare facilities. Internationally, we export to Russia, South Korea, Italy, Bulgaria, and many other European countries where promotion is ongoing.

7. Our products are more widely used in small and medium-sized urban hospitals, particularly those below the secondary level, with a high prevalence in maternal and child health institutions and pediatric departments, due to their low blood sample volume requirements. We have also deployed our systems in community health centers; previously, such small medical facilities lacked biochemical testing capabilities altogether because they could not afford large-scale biochemical analyzers. After installing our equipment, this maternal and child health hospital discontinued the use of its original analyzer.

8. We can extend our healthcare services down to the rural level and have equipped numerous private clinics with this device, enabling them to conduct home health check-ups for the elderly. Do private clinics purchase this equipment merely to add a new service offering? I consulted the clinic managers and learned that their primary motivation is risk mitigation. If a patient presents without a clear assessment of whether their condition is mild or severe, any resulting medical malpractice could lead to the revocation of my medical license and substantial financial compensation. With this device, we can immediately determine the severity of a patient’s condition upon arrival; if it is critical, we can promptly refer them to other hospitals.

9. We also have special users; we collaborated with China's manned spaceflight department and conducted extensive testing that met the required standards. In 2018, China's first space station was operational in orbit, where astronauts stayed for six-month missions, requiring continuous monitoring of their physical health.

10. China has over 900,000 medical institutions registered with the National Health Commission. Among them, tens of thousands are hospitals, while the remainder include township and village-level facilities, private clinics, community health centers, and small infirmaries within factories and mines. There is a vast number of very small-scale medical institutions, which, to date, lack effective solutions for laboratory testing. Our device can initially be deployed in millions of primary care medical institutions. As its convenience and cost-effectiveness are further optimized, it will eventually reach households across the country, thereby establishing an extensive network for blood analysis and testing at the grassroots level.

11. A friend of mine was diagnosed with multiple myeloma some time ago. His serum globulin levels were markedly elevated, which is a highly characteristic indicator. After completing the first cycle of chemotherapy in the hospital, he continued treatment at home with oral chemotherapeutic agents. During chemotherapy, regular blood tests are required to monitor whether globulin levels are decreasing. He was provided with a device that allows him to perform these tests at home, thereby avoiding frequent hospital visits every ten days or so solely for this purpose. After self-testing, he would call his physician, who would provide guidance on whether the current regimen was effective and whether dosage adjustments were needed. This approach has saved him considerable trouble.

12. Regarding tiered diagnosis and treatment, the primary challenge lies at the primary care level. The clinical competency of primary care physicians is currently insufficient, and national efforts to cultivate talent cannot yield immediate results, as this requires time. Furthermore, primary care facilities genuinely lack access to professional laboratory diagnostic equipment. Integrating highly specialized, medical-grade therapeutic hardware with online healthcare services, and combining professional diagnostic equipment with remote physician consultations, may help address this issue to a certain extent.

13. Once these data are available and integrated with online mobile healthcare services, online physicians will establish long-term health records for patients based on their test results. Data mining can then be performed on this information, which not only guides patient rehabilitation but also enables utilization by health management service providers, mobile healthcare companies, insurance companies, and other stakeholders.

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