Liu Mingyu at Healthcare Expo Summit: Mobile Health Revolution in Next Five Years Hinges on Technological Innovation

Which sectors should future investments in the intelligent healthcare industry focus on, and where lie the “pain points” in financing and investment? On April 16, at the Financing and Investment Forum for the Intelligent Hardware/Wearable Medical Industry, held as part of the 2015 Healthcare Exhibition, Liu Mingyu, Managing Director of Zhongxing Hechuang Investment Management Co., Ltd., shared the company’s medical investment experience in 2014. He pointed out that the mobile health revolution over the next five years would rely heavily on technological innovations, such as sensor technology. In 2015, attention could be directed toward emerging technologies, third-party diagnostics, big data, and private healthcare.

Identifying the "Pain Points" in Healthcare Industry Investment
It can be approached from the perspectives of target population, stage of population service, and product attributes.
In 2014, Zhongxing Hechuang invested in only five projects in the healthcare industry, including implantable sensors, intelligent chronic disease management tools, and home ventilators. Liu Mingyu pointed out that while user demand is a key consideration for investing in healthcare projects, the current investment logic for wearable medical devices should place greater emphasis on accurately defining the target population, the stage of service delivery, and product attributes.

Liu Mingyu has positioned the target demographic for his wearable medical investment products as individuals aged 50 to 60. Having witnessed the birth, aging, illness, and death of family members, this cohort—born in the 1940s and 1950s—has a deeper appreciation for the importance of health than those under 50, while possessing broader perspectives than those over 60. They are more willing to pay for health-related services and demonstrate strong purchasing power for medical care.

Secondly, given the wide array of medical services, which ones hold greater investment potential? Liu Mingyu believes that the transitional phase between healthy individuals and patients represents a critical entry point for wearable medical services. For instance, sub-healthy populations who have not yet developed into full-blown patients, as well as patients in the rehabilitation stage after receiving professional treatment, are both worth exploring and serving by the wearable medical industry.

Furthermore, the attribute positioning of investment products must be clearly defined. For wearable products or services, interactivity, comfort, personalization, continuity, immediacy, effectiveness, and safety are all important attributes. However, the attributes listed later carry greater weight; safety and effectiveness constitute the critical foundation—the “bedrock”—of any wearable product or service.

Bad Products + Internet Thinking = Even Worse Products
Technological Innovation Is the Key to the Future Development of Mobile Health
In the investment industry, many “secret formulas” for huge profits stem from the principle that “speed is paramount” and first-mover advantage. However, this does not necessarily apply to the healthcare sector. As Liu Mingyu pointed out, a poor product with no potential cannot become a good one, even when infused with internet thinking and technology.

Liu Mingyu stated bluntly that over the next five years, the revolution in mobile healthcare will rely heavily on technological innovations, such as sensor technology. To emphasize business model innovation while denying the driving role of technology is merely speculative.

Furthermore, technology is the means, while healthcare is the end. “While enhancing attributes such as wearability, implantability, and transmissibility, do not overlook the two fundamental properties of safety and efficacy,” reminded Liu Mingyu. In 2015, investment and financing in the healthcare industry should focus on emerging technologies, third-party diagnostics, big data, and private healthcare.