As China’s elderly population continues to rise with public demand for high -quality health services, online health care could provide solutions in the near future, increasing opportunities for foreign investors.
China’s healthcare industry has entered the computer age, preparing for changes for hospitals and private companies in the region. Online health care, featuring online health discussion, is becoming a new reality for many Chinese citizens. The development of the sector has been greatly enhanced by the COVID-19 epidemic, which is receiving close attention from government officials and technology professionals to increase market awareness.
What is online health care?
Cell health care is part of the wider health care sector, which is concerned with artificial intelligence and the training of machines for diagnostics and management. Unlike traditional settings, where patients and providers communicate with clinics or hospitals, online health care is managed through virtual platforms that can be accessed through mobile apps. and computers. These platforms provide a wide range of health services and products, including health consultations, planning hospital choices, prescribing medication, health information management, health insurance, and telemedicine.
Carrying the burden of visiting public hospitals makes online health care services more accessible to consumers looking for medical treatment. With immediate new insights, consumers can worry about their symptoms when they have reliable information for self -examination and self -medication, reducing the need to see a doctor. That kind of service is changing the health care industry from its traditional approach to preventive care.
The cost of online health care varies depending on the type of service. The usual way is through text and photo discussions, to give patients access to some contact with their doctors in real -time. Other services include voice and video conferencing.
According to research data, the average price for a 48-hour text / image package service is RMB 65 (US $ 9.64), while RMB 8.32 (US $ 1.23) per minute for voice chat, and RMB 17.56 (US $ 2.6) per minute per video. discussion. Prices also differ between thresholds, reflecting differences in supplier quality, sales power, and customers ’willingness to pay.
| Prices and customer preferences for different types of online health care services | ||
| Types of services | Prices | Customer feedback |
| Images/ text (per package) | RMB 65.1 (US $ 9.64) | 71.6% |
| Voice (every minute) | RMB 8.32 (US $ 1.23) | 16.4% |
| Video (every minute) | RMB 17.56 (US $ 2.6) | 12% |
A innovation in the online healthcare market is the development of a popular system that collects and disseminates user feedback, helping consumers evaluate the quality of providers in an area. Kind of clearer. Online health care can provide a solution that satisfies national differences in access to high -quality medical services, reducing system pressure due to state -wide differences in the health care industry. .
What are China’s policies for online health care?
The country’s “Healthy China 2030” online health care system is critical to achieving economic and social development goals. Since its inception in 2016, the Chinese government has intensified efforts to support the development of health technology through the form of policies and regulations.
In April 2018, the State Department released a document called “Internet Plus Medicine and Health,” which outlines a major plan to integrate the internet and information technologies into health care. . The rules brought in regulation on the supply side to reduce underdevelopment and inadequacy of the sector. China’s healthcare technology boom came after the implementation of the entire system.
In August 2019, the National Healthcare Security Administration (NHSA) introduced the health insurance system – adjusting costs and insurance policies to allow online medical services to be covered by the nation’s health insurance system. Patients can access the hospital’s services through WeChat and Alipay platforms. This partnership was further strengthened with NHSA’s leadership in October 2020 to strongly promote the payment and management of “Internet+” medical services.
In May 2020, the National Health Commission (NHC) issued a statement urging provincial governments to establish their own laws to regulate online healthcare and speed up the market access of medicines. hospital network. Later in September of that year, the State Legislature again recognized the need to increase online healthcare facilities. Since then, local governments have announced regulations to improve conditions for the online health care market.
The cell health of the 14 is importantth Five-Year-Plan (FYP), which requires connectivity between regions, equitable development between cities and states, and the use of big data. The government’s next goal is to accelerate the incubation of the online health care market and disseminate technology and the growing demand for critical data in direct medicine, health management, drug research and development, and health insurance.
Market position and overview of the online healthcare industry: An ecosystem at work
Online health care has seen significant growth during the COVID-19 disease, with a significant increase in users. While access to hospitals with locks is increasing, more and more people are looking for online resources for health services. Alibaba Health reported that more than 15,000 medical clinics were registered, including 400 Class III hospitals in 17 provinces, related to paid insurance services. The company reported that in 2020 Q1 the total number of regular users of Alipay’s health care system would exceed 390 million.
Many technologies, knowing the time, are moving fast in this industry. Currently, there are 1,748 health care startups in China. Among all those sharing the cake, Ping An Good Doctor, a Hong Kong -registered member of Ping An’s health insurance, reported 26.7 percent year -over -year growth. as daily online conversations grow to 831,000 in the first half of 2020, with revenue. from online medical services doubling to RMB 694.9 million (US $ 101.56 million).
Lessons learned from the management of chronic kidney disease could compare the direction of the Chinese health care market, which is estimated to be nearly threefold from RMB 6.5 trillion (US $ 960 billion) per year. 2019 to RMB 17.6 trillion (US $ 2.61 trillion) by 2030. The market continues to be currently undeveloped, with China’s health spending – including medicines, pharmaceuticals, donation, hospital , pharmaceuticals, and insurance – accounted for only 7.12% of total GDP in 2021, and the U.S. grew 18% in the same year. There is still room for growth in the health care industry.
The online healthcare industry is in the early stages of development. Reconstruction with similar activities on different platforms will trap customers and investors. Further work is needed to define the value of each site and establish different business plans and service models according to the different types. With strict government policies, sustainable development is more important to promote and strengthen the viability of the industry.
However, the market is showing promising hope. China’s health care industry reports hospitality with a 160% return over the past decade. The health care industry relies heavily on health data from Chinese patients. China’s population is booming significantly, with the number of older people (65 years and older) expected to double from 10 percent of the population in 2017 to 20 percent by 2037.
Online health care in China is expected to receive initial attention from the government. It is hoped that foreign investors providing health care services will focus on this fast -growing region.
Taken together, the rapid pace of urbanization and the growth of the middle class population are supporting the growth of domestic demand for higher quality health care products. Faced with an aging population and citizens demanding better services, China’s health care industry is set to be the focus of the government’s focus for the next decade. from. As a major player in the industry, online health care, with its reach to the public, is witnessing tremendous growth.
How can foreign investors get into the business?
Health care is a good place to invest in foreign investments. According to the latest Catalog of Industries for Foreign Advocacy (2020 Version), China encourages investment in many areas of online health care, including:
- Systemic health care
- Digital health system, community care, private health care related to development and application
- Medical information services such as health counseling, health counseling, and health information
In general, online health care, which has seen significant growth during the illness season, provides valuable opportunities for investors.
About us China Briefing was written by Dezan Shira & Associates. The operation helps foreign investors in China and has been operating since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and and Hong Kong. Please contact the company for assistance in China at china@dezshira.com. Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, the United States, Germany, Italy, India, and Russia, as part of our commercial research facilities at the Belt & Road Initiative. We have partner organizations assisting investors in The Philippines, Malaysia, Thailand, Bangladesh.