HealthyWay Weekly Internet Healthcare Report 20150323: Industry Giants Rush into Health Sector Amid Policy Tailwinds

Events and Perspectives

Last week, in the aftermath of the Two Sessions, the most prominent news in the internet healthcare sector was the rush of tech giants and diverse capital investors to stake their claims in the broader health industry.

1）Sanxing ElectricEstablished a subsidiary, Ningbo Aux Medical Investment Management Co., Ltd., with a registered capital of RMB 100 million, to enter the big health industry.

2）By-HealthEstablished a mobile healthcare company in partnership with Chengcheng Investment, Xilejia Investment, and others, while actively expanding its presence in the mobile healthcare sector.

3）Dima Co., Ltd.Invested RMB 70 million to enter the healthcare sector, with primary business activities including medical investment management, as well as technology development, technical consulting, and technical services in the field of medical technology.

4）Shandong State InvestmentEstablishment of Shandong Kangjian Industrial Investment Fund Management Company is planned. The company will primarily focus on project investments in areas such as medical service institutions, elderly care real estate, health management centers, pharmaceuticals, and medical devices within the province.

5）BeyondSoftWe hope to enter emerging fields such as health and elderly care management in 2015.

6) Last week, after more than a month of trading suspension,Guiyang Longmaster InformationA private placement of RMB 1 billion was raised to develop internet healthcare. Of this, RMB 110 million was allocated to the construction of a health management service platform based on wearable and portable devices, RMB 90 million to the development of an O2O pharmaceutical services platform, and the remaining approximately RMB 800 million to supplement working capital.

7）Zhejiang Daily MediaIt also indicates the need to promote the community e-commerce industry and explore the development of e-commerce sectors such as online healthcare and database-based elderly care services.

8）Fosun GroupDonated 100 million yuan to Fudan University, primarily for medical and health initiatives.

Beyond its cross-sector healthcare investments, the company is also comprehensively strengthening its domestic expansion efforts.

Last week,Lepu MedicalFurther advancing the medical care process. A mobile health strategy was released, encompassing the establishment of a network hospital for cardiovascular diseases, an e-commerce platform for pharmaceuticals focused on the treatment and management of cerebrovascular and cardiovascular diseases, and the development of online patient communities. In alignment with this strategy, Lepu Medical initially launched two mobile applications: “Tongxin Guanjia” (Heart Care Manager) and “Heart Failure Management.”

Genetic Testing Company23andMeIt is also preparing to expand into the pharmaceutical industry in the coming years, with a focus on developing treatments for specific diseases.

Also, in ChinaThe First Sino-U.S. Joint Venture Healthcare Referral Institution— Beijing Liwan International Health and Medical Referral Agency also last weekEstablishmentAccording to VCBeat, Liwan’s core business focuses on international medical referrals and preventive healthcare for disease prevention. The company has established strategic partnerships with world-leading hospitals and research institutions in the United States, Germany, Switzerland, Japan, and other countries.

Healthcare Reform

Chongqing Adjusts Over 7,000 Medical Prices: Consultation and Treatment Fees IncreaseTo regulate the pricing practices of medical institutions and effectively safeguard the legitimate rights and interests of patients, the "Chongqing Medical Service Item Prices (2014 Edition)" has been approved by the Municipal Party Committee and the Municipal People's Government and will be officially implemented starting March 25, 2015. This document will serve as the basis for fee collection for medical services provided by public medical institutions at all levels. In accordance with the regulations, prices for large-scale equipment examinations and laboratory tests in Chongqing’s public hospitals will be reduced by 25%, while fees for consultation, nursing, treatment, and surgical services will be increased by 30%, 30%, 13%, and 13%, respectively.

Sanming to Break Current Staffing Quotas for Public Hospitals:The CPC Sanming Municipal Committee and the Sanming Municipal People’s Government jointly issued the “Opinions on Further Deepening the Reform of the Medical and Healthcare System.” In addition to improving existing measures, the “Opinions” introduce numerous new initiatives in areas such as exploring the integration of medical care and elderly care, implementing tiered diagnosis and treatment, establishing and improving modern hospital management systems, and enhancing comprehensive reforms at primary healthcare institutions.

Shanghai’s Public Hospitals to Phase Out Drug Markups Within Two Years:This year, Shanghai’s healthcare reform efforts will actively promote the separation of prescribing from dispensing, gradually eliminate drug markups in public hospitals across the city, and explore tiered diagnosis and treatment. In addition to deepening healthcare reforms, the city will further strengthen medical service management and enhance both urban public safety assurance capabilities and routine emergency medical services.

National Health and Family Planning Commission Supports Salary Increases for Nurses:The website of the National Health and Family Planning Commission (NHFPC) released the "Notice on Further Deepening High-Quality Nursing Care and Improving Nursing Services," which aims to further strengthen awareness of nursing service and enhance the level of nursing care. Meanwhile, the NHFPC put forward specific requirements on how to improve nursing quality.

Tertiary Hospitals to Fully Implement Time-Slot Appointment System:The National Health and Family Planning Commission website released the Action Plan for Further Improving Medical Services. In promoting appointment-based diagnosis and treatment services, tertiary hospitals will gradually increase the number of outpatient appointment slots. By the end of 2017, the appointment rate for diagnosis and treatment in tertiary hospitals shall be no less than 50%, and the appointment rate for follow-up visits shall be no less than 80%; the appointment rate for follow-up visits in stomatology and prenatal check-ups shall be no less than 90%. Time-slot appointments will be fully implemented to reasonably schedule patients’ consultation and examination times, thereby minimizing waiting times at hospitals. By the end of 2017, 100% of inpatients shall have time-slot appointments for examinations, and no less than 50% of outpatients making appointments shall utilize time-slot appointments for consultations.

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Data

2015 Survey on Online Pharmacy Usage: Users Most Frequently Purchase Common Medications and Health SupplementsAccording to the "2015 Online Pharmacy Usage Survey" released by Penguin Intelligence, daily-use medications accounted for the highest frequency and broadest scope of user purchases, with a proportion nearing 30%. In contrast, weight-loss drugs were the least purchased category, accounting for only 5.5%, less than one-quarter of the share for daily-use medications. The user proportions for home medical devices and nutritional health products were 20.4% and 16.7%, respectively. Notably, 19.3% of respondents indicated that they would not purchase any medical products online.

Overseas

CMS Expands Telehealth Services, Benefiting 80% of Medicare Beneficiaries:The Centers for Medicare & Medicaid Services (CMS) has officially approved the application submitted by the American Telemedicine Association (ATA), authorizing Accountable Care Organizations (ACOs) to utilize telehealth services. Concurrently, CMS introduced a new payment and care delivery model: the Next Generation ACO Model. This decision expands the scope of telehealth coverage, benefiting millions of Medicare beneficiaries.

WHO Releases First-Ever Hepatitis B Treatment Guidelines!The World Health Organization has released its first-ever guidelines for the treatment of chronic hepatitis B. Chronic hepatitis B is a viral infection transmitted through blood and body fluids that damages the liver, causing an estimated 650,000 deaths annually, with the majority occurring in low- and middle-income countries.

New Technologies

US University Develops Pressure Ulcer Detection Sensor
Researchers at the University of California, Berkeley, and the University of California, San Francisco, have developed a bandage-like sensor called “smart bandage” for the early detection of pressure ulcers. When applied to the skin, it uses impedance spectroscopy to monitor the condition of the skin and subcutaneous tissues.

The Daily Telegraph: Google’s New Wristband Can Destroy Cancer Cells in the Bloodstream
Google has developed a wristband device called “Nanoparticle Electrophoresis” that can automatically modify or destroy one or more targets in the bloodstream that have adverse effects on health, including cancer cells.

Instant Strength Boost! Antelope Smart EMS Clothing
German startup Wearable Life Science has launched a remarkable smart garment called Antelope, which leverages Electrical Muscle Stimulation (EMS) to target specific muscle groups based on the wearer’s real-time exercise intensity, thereby enhancing workout effectiveness.

New Satellite Scanning Technology: Can Be Used to Detect Skin Cancer
The European Space Agency’s (ESA) Proba-V, a small satellite designed for vegetation scanning, is expected to find applications in medical scanners. The sensor on Proba-V operates in specific spectral bands that can help physicians visualize deeper human tissues and even detect early signs of skin lesions. Within a few years, this technology could be applied to skin disease screening and potentially used to create personalized maps of human tissue.

Swiss Scientists Test Bio-3D Printed Nasal Implants in Sheep
Marcy Zenobi-Wong and Matti Kesti, researchers at ETH Zurich, have 3D-printed nasal implants using cartilage from patients and biopolymers that degrade over time and are replaced by the patients’ own cells. The implants are currently being tested in sheep.

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