reMED 'Reconstructing Healthcare Ecosystem' Conference Files IPO Prospectus

The rare clear blue sky over the capital lifted my spirits as I navigated multiple transfers early in the morning to attend the “reMed—Reconstructing the Healthcare Ecosystem” conference hosted by the Communication University of China. As many attendees and the host jokingly remarked, it was somewhat ironic that a university with no direct ties to either the internet or healthcare sector should organize such an invigorating summit on internet healthcare. Nevertheless, each conference attendance brings its own rewards; this event resolved many of my previous doubts, offering both affirmations and rebuttals.



Internet Healthcare ≠ Internet + HealthcareI believe that internet professionals and traditional medical information practitioners inevitably prioritize different aspects. Some argue that digital health should emphasize the "digital" component, while others contend that its core lies in "healthcare." Rather than debating which is more important, I will offer my personal interpretation of the insights from the reMed Conference. The key points below are not presented strictly in the order of the conference agenda:

1. Differences Between EHR and EMR

Personal health management has emerged as the hottest concept in recent times, prompting traditional hardware manufacturers to pivot their business models, as exemplified by Andon Health’s iHealth. Meanwhile, major internet companies are seizing the opportunity to rapidly enter the broader healthcare sector, with offerings such as Tencent’s Tang Dafu (Glucose Doctor), JD.com and Lexin’s WeChat-enabled blood pressure monitors, and the Xiaomi Mi Band. For smart devices like blood pressure monitors, pulse oximeters, glucometers, and scales, as well as smart bands touted for sleep tracking capabilities, the primary focus is often on wellness (health + fitness). These devices aim to build personal Electronic Health Records (EHRs) by continuously monitoring vital signs 24/7. In contrast, examinations conducted at hospitals during medical visits—such as diagnostic reports, complete blood count (CBC) tests, and radiological imaging including CT, ultrasound, MRI, and PET scans—provide clearer and more accurate parameters of bodily organs to support clinical diagnosis. This type of information is primarily medical in nature and is referred to as Electronic Medical Records (EMRs).

Today, I had the privilege of meeting Li Tiantian, the CEO of DXY, up close. Dr. Li, who began his career as a physician, summarized his presentation using the acronym ACID, which stands for App, Connected Health, IoT, and Doctor, covering the entire healthcare industry. Given his medical background, Dr. Li firmly believes that doctors are the core resource in healthcare and that the focus of internet-based healthcare should remain on medical care itself. In the section on Connected Health (cHealth), he shared his views on data collection: “Data collected by currently popular wearable devices (such as fitness bands and smartwatches) is at a ‘toy’ level, lacking clinical application value. Furthermore, each manufacturer uses its own standards, making it difficult to effectively preserve data over the long term.” This relates to the Electronic Health Records (EHR) discussed earlier. Dr. Li considers meaningful data to include EMR (Electronic Medical Records), Lab/Device results, Rx (prescriptions), and Claims, all of which can be categorized under the broader umbrella of EMR mentioned above.

Or, as debated by the Chief Operating Officer of Xingshulin and Zhang Rui of Chunyu during the “High-End Dialogue” at the close of the conference, whether EHR or EMR, both are ultimately R (Record), serving as data samples in the era of information explosion. Xingshulin interprets this from the physician’s perspective: even if EHR data under 24-hour real-time monitoring holds clinical value, the current physician training system in China does not teach how to interpret such data to assess patients’ health conditions, thereby precluding professional and scientific diagnoses. In contrast, Zhang Rui of Chunyu approaches the issue from an application standpoint, arguing that the accuracy and clinical value of data depend on the specific application scenario, with varying requirements for data precision across different contexts. The round-the-clock physiological data collected by wearable devices have elevated the scale of information. The current insistence on clear distinctions may stem from traditional healthcare practitioners’ fear of digital medicine.

The debate between EHR and EMR is akin to arguing whether the focus of internet healthcare lies in the “internet” or in “healthcare.” “Whether you use it or not, the data remains there, neither diminishing nor disappearing; whether you believe it or not, the accuracy stays as it is, neither increasing nor decreasing.” When the era of internet healthcare, or fully digital healthcare, truly arrives, we can refer to all such data as EXR (Electronic X Record), or as pan-EHR, encompassing both EHR and EMR mentioned above.

2. Externalizers of Hospital Functions and New Healthcare Service Providers

After a brief introduction to the concepts of EHR and EMR, let us examine two data acquisition pathways. Currently, most EHR data are collected via wearable devices, whereas EMR data primarily consist of measurements from professional in-hospital medical equipment. How can these two types of data be integrated?



It can be simply understood that EHR represents data management for new healthcare service providers, while EMR pertains to data management for traditional hospital functions. New internet-based entrants are gradually disrupting the landscape through deep integration, whereas traditional incumbents are externalizing their capabilities, leading to a gradual convergence of EHR and EMR. As a result, the boundary between the two is becoming increasingly blurred and more homogeneous.

The chart above does not prominently feature traditional medical device manufacturers, nor does it include conventional healthcare information providers. Given Zhang Rui’s personality, it is likely that he simply did not prioritize these two sectors. However, there has been significant recent news in the traditional healthcare information services industry: the partnership between Alibaba and Kingstar Winning Health. Yet, this development appears to have missed the headlines. One party is an internet giant currently under the spotlight of capital markets and the government; the other is a leading service provider in the hospital information sector. From a technical perspective, their collaboration most directly involves integrating traditional Hospital Information Management Systems (HIMS) with internet platforms. From the standpoint of overall healthcare industry strategy, this represents the concrete implementation of Alibaba’s layout in the broader health sector, a major step by the internet industry in its attempt to disrupt healthcare, and a proactive effort by Winning Health to transition toward internet-based services. This alliance of giants will inevitably usher in a new wave of disruption.

Based on previous speeches, Chunyu Doctor may not be particularly interested in these aspects. Since its establishment in 2011, the company has been committed to leveraging mobile internet technologies to help people manage their health, delay aging, and treat illnesses. Rather than establishing direct ties with hospitals between “doctors” and “patients,” Chunyu Doctor aims to change current healthcare-seeking behaviors through mobile internet and disrupt the existing medical system. However, in researching the transformation of traditional medical device manufacturers, it is worth noting that as early as October 2014, Chunyu signed a Strategic Cooperation Framework Agreement with Meiya Optoelectronic, a domestic manufacturer of dental CBCT (Cone Beam Computed Tomography) systems. Both parties sought to explore opportunities in internet-based healthcare and big data through collaboration in capital, technology, data, and online-to-offline (O2O) integration. Meiya Optoelectronic, as a traditional dental CBCT manufacturer, aimed to make beneficial forays into digital health, while Chunyu Doctor sought to deepen its specialization in dentistry and cooperate with offline dental institutions. In terms of specific cooperation, both parties planned to jointly build Anhui Province’s Mobile Digital Tiered Diagnosis and Treatment Platform, which would cover health education, medical triage, and hospital appointment registration. Furthermore, building upon this platform, they intended to leverage Meiya Optoelectronic’s leading advantages in dentistry to create a premier teledentistry platform, featuring remote dental imaging consultations and O2O patient guidance services.

3. Medical Consortiums and Regional Healthcare

The internet has disrupted many traditional industries and is now targeting healthcare. Integrating the internet with hospitals naturally requires a clear understanding of hospital information system architectures, such as HIS, LIS, RIS, and PACS. Disruption is occurring across all stages: pre-diagnosis, during diagnosis, and post-diagnosis. For instance, platforms like Guahao.com and Chunyu Doctor focus on the pre-diagnosis stage, primarily offering appointment scheduling and pre-consultation services. To integrate with hospitals, these platforms must connect with the appointment registration and queue management modules of hospital information systems. Disruption during the diagnosis phase is more likely to involve process tracking and management, or equipment upgrades (e.g., Google Glass), which primarily interface with Laboratory Information Systems (LIS) to extract and mine data from various laboratory testing devices. For post-diagnosis management and treatment follow-up, integration with HIS, RIS, and PACS is required to access electronic medical records and medical imaging data, thereby facilitating better rehabilitative care. Currently, every stage ultimately requires integration with hospitals to extract and mine necessary data from "information silos."

In fact, from a technical perspective, the traditional healthcare industry has long adopted internet technologies. In the 1990s, the Chinese PLA General Hospital conducted China’s first remote video consultation. The current self-reform of the healthcare system, which primarily promotes medical consortia and regional healthcare, relies heavily on the internet. However, the application of internet technology does not equate to “internet healthcare.” While the internet has its own technical characteristics and business models, its true essence lies in a new mindset: “The internet is about interconnectivity and information sharing, attracting users by breaking down information asymmetry, thereby disrupting traditional industries.” The healthcare industry, however, is somewhat different. As Mr. Li from DXY (Dingxiangyuan) stated, “Healthcare always provides a semi-mandatory service.” During specific treatment moments, physicians always hold the initiative, which is precisely why DXY has been deeply committed to serving the physician community.



Medical Consortia and Regional Healthcare represent the proactive reforms undertaken by hospitals within the traditional healthcare system in the new era. A Medical Consortium typically consists of a tertiary hospital, secondary hospitals, community health centers, and village clinics within a specific region, forming a unified healthcare alliance to integrate medical resources internally. Regional Healthcare, on the other hand, is more often led by national or local governments, connecting various institutions within the planned area, including healthcare providers, administrative management units, and other relevant health organizations. This approach aims to build a data exchange and sharing platform for the basic business information systems of these institutions, enabling effective information integration among disparate IT systems within the region. By establishing a universal electronic health record system, it facilitates collaborative services such as regional smart card access, two-way referrals, and seamless order processing, while also achieving integration among medical services, medical insurance, and the New Rural Cooperative Medical Scheme. This represents a broader externalization of hospital functions, or more accurately, an expansion of hospital responsibilities.

The internet is disrupting healthcare, aiming to foster greater equality between patients, doctors, and hospitals, and to break down information asymmetry. Meanwhile, medical consortia and regional healthcare systems represent a self-driven revolution from within the established system, aimed at dismantling information silos and inequalities. Regardless of whether these internet-driven disruptive attempts succeed, they will undoubtedly propel the healthcare industry forward. Hospitals are also making their own efforts, seeking to leverage internet-based models to enhance user experience. These two forces complement each other. Whether internet companies or hospitals ultimately dominate the future health services sector, the entire healthcare system will evolve in a direction that is more beneficial to users.

2014 has quietly passed, and new challenges will continue in 2015. We look forward to the transformation of the healthcare industry...

[This article is republished by VCBeat with authorization from Zhang Shuo. Zhang Shuo (zssure) holds a Master’s degree in Biomedical Engineering from the School of Medicine, Tsinghua University. An internet enthusiast and IT aficionado, he is passionate about healthcare and dedicated to the health services industry.]

The views expressed in this article are solely those of the author and do not represent the position of VCBeat.