Since the beginning of 2020, due to the catalysis of COVID-19 's prevention and control demand, platform Internet medical enterprises such as Ping An Healthcare And Technology, Micro Medicine, Dingxiangyuan, Chunyu Doctor and HaoDoctor online have launched epidemic prevention and control zones, with a substantial increase in the number of online consultation and consultation among residents. Physical hospitals have also launched online consultation, online consultation services.

Weidi will push ahead with its listing on the Hong Kong Stock Exchange and hopes to raise $1 billion in an initial public offering that is expected to value it at $10 billion, according to people familiar with the matter. In addition, Internet medical enterprise Ping An Healthcare And Technology has increased by more than 180% in the past year, and Alibaba Health Information Technology has increased by more than 108%.

The birth background of Internet health care:

In essence, encouraging Internet health care is part of a series of policies to solve the "difficulty of seeing a doctor". China's medical reform has entered the deep water area, and the two core problems that need to be solved in medical reform are"it is difficult to see a doctor" and "expensive"：

1) the essential problem of ordinary people's "expensive to see a doctor" lies in three points:A) the drug structure brought about by "nourishing medicine with medicine" is unreasonable.As the interests of doctors are linked to drugs, some unnecessary drugs will be widely used because of their interests in clinical use.B) second, the "pricing moisture" of pharmaceutical equipment in the process of circulation.Due to historical reasons, 60-80% of terminal pricing is often used in all aspects of circulation.C) third, the proportion of health insurance payments.At present, the main payer in China is the basic medical insurance, and now we are gradually trying to co-ordinate at the provincial level and add a new payer (that is, commercial health insurance).

2) there is only one essential problem that it is difficult for ordinary people to see a doctor.The mismatch of medical resources.China's hospitals are structural, large hospitals are overcrowded, grass-roots hospitals and community hospitals are few and far between. The purpose of medical reform is to solve the problem of graded diagnosis and treatment, realize the diversion of large hospitals, strengthen general practitioners, strengthen primary health care, and so on. The core purpose of encouraging Internet health care is also to achieve the diversion of large hospitals:

The Internet addresses the industry's pain points:

In the long run, Internet medical care can not replace the traditional offline medical channels, but it can become a good supplement to solve the problem of misallocation of medical resources to a certain extent. Internet medicine has essentially solved the problem.Two major pain points:

1) the problem of "distance" of patients visiting a doctor:The medical resources of first-tier cities are covered to grass-roots and remote areas, which in disguise increases the radiation scope of high-quality medical resources.

2) to "empower" the hospital and solve the problem of "division of labor" in mild and severe cases at the same time:A) online registration of Internet medical care can optimize the process of traditional medical channels; b) Internet medical treatment can solve common diseases, chronic diseases, frequently-occurring diseases and major epidemics (especially revisit), while traditional offline medical treatment will tend to be specialist-oriented, mainly used for the treatment of severe and difficult diseases.

Business model:

At present, there is not yet a market-proven business model for Internet medical care.Head enterprises are still in the dilemma of sustainable profits, various platforms are still trying to integrate the main line of branches and medical resources, and gradually form their own styles and barriers. Based on the analysis of the three development paths of Micro Medical Group, Ping An Healthcare And Technology and Dingxiangyuan, this paper discusses and analyzes its business model, subdivision track, development strategy and competition barriers.

1) Micro Medicine Group:

Founded in 2010, appointment registration started, electronic medical records and other services started, and now it deeply connects many kinds of medical service supply and demand scenarios such as hospitals, doctors, patients and the medical insurance industry, and provides dozens of cloud solutions, including Internet hospitals, medical couplets, family doctor contracts, cloud pharmacies, medical AI-assisted diagnosis, etc., becoming the world's leading medical and health technology platform.

At present, the Micro Medical Group has completed several rounds of financing, including Sequoia Capital, Morningside Capital, Fosun, Goldman Sachs Group, Hillhouse Capital, Tencent and other well-known institutions. AIA Group Limited Holdings Co., Ltd. and NWS Group led the strategy in May 2018. after the financing was completed, Weidi was valued at US $5.556 billion and is promoting a listing on the Hong Kong Stock Exchange this year.

A) course of development:

Since its inception, the Micro Medical Group has gone through three rounds of development:

The first stage: "registration network", which realizes the connection to the hospital.

The second stage: "Internet hospital", which realizes the connection between big doctors and grass-roots medical institutions.

The third stage: the current stage, "Medical Union + AI", that is, the whole business chain that deeply connects large and small hospitals, big doctors, small doctors and medical insurance through medical couplet and medical artificial intelligence.

B) Core business:

It is composed of three sharing modules: 1) the platform sharing module with the Internet hospital as the core; 2) the doctor sharing module with the team medical treatment as the fulcrum; and 3) the regional health information platform module of "one fulcrum, one network, one system". As of May 2018, micromedicine has connected more than 2700 key hospitals and 240000 doctors in 30 provinces and cities across the country, and cooperated with more than 100 hospitals across the country to build a medical union.

In December 2015, Wuzhen Internet Hospital, the first Internet hospital in China (in cooperation with the Tongxiang Municipal Government of Zhejiang Province), was established and settled in 19 provinces and cities; the number of real-name registered users exceeded 160 million and the cumulative number of service people exceeded 580 million.Its profit model mainly has two aspects: the first is to insist on doing online revisit, remote consultation and health management, etc., without first diagnosis; the second is to provide online + offline service model based on physical medical institutions.

At present, the location coverage of Internet hospitals under Micromedicine Group is also increasing year by year. According to our statistics, as of March 2020, there are about 46 Internet hospitals registered for industry and commerce under the Micro Medical Group, which are distributed in 40 prefectures and cities in 16 provinces across the country.

From the perspective of location distribution, the sinking trend is more prominent, and the Internet hospitals under the Micro Medical Group are also more set up in the second, third and fourth-tier cities, mainly in East China and Central and South China.

In addition, the micromedicine group cooperates with more than 100 hospitals across the country, and has set up 19000 medical and health service outlets, including micromedicine general practice, community health service centers and pharmacies. Connect experts across the country through the Internet, and support grass-roots medical institutions and doctors downwards to form an Internet medical consortium.

In the three development stages of connecting hospitals, government cooperation and industry exploration, the micro-medicine group has gradually formed a profit model around the two main lines of micro-medicine cloud and micro-medicine HMO:

"Micro Medical Cloud"The country's leading cloud platform for the health care industry, which mainly provides intelligent medical cloud and medical artificial intelligence solutions for many kinds of users, such as the government, hospitals, grass-roots medical institutions and enterprises.

"Micro doctor HMO"It integrates the resources and advantages of micromedicine in the fields of medical treatment, medicine and insurance, and is composed of medical supply network, health management service and medical security system, for hundreds of millions of families. provide "online + offline, general practice + specialist" managed medical and health services.

2) Ping An Healthcare And Technology:

Registered in 2014, it is the leading one-stop Internet health ecological platform in China. Backed by Ping an Group, Ping An Healthcare And Technology has natural "insurance genes". If calculated on the basis of the number of registered users and MAUPing An Healthcare And Technology is also the world's leading Internet medical and health platform.

As of December 31, 2019, the number of registered users of the company reached about 315 million, an increase of 50 million over the end of 2018, an increase of 18.9% over the same period last year. The number of monthly active users (MAU) at the end of the period reached about 66.9 million, an increase of 22.3% over the same period last year.

A) Strategic analysis:

Since its inception, Ping An Healthcare And Technology has experienced two major strategic adjustments. At present, around the three main strategic lines after upgrading, the company has basically formed a clear competitive advantage:

The past:It is positioned as "health management + mobile medicine", with the construction of health management and online consultation service as the core. The core service circle is composed of 1000 attending physicians from tertiary and first-class hospitals, providing full-time one-to-one services to patients. An appointment system for famous doctors is established in the outer circle layer to provide users with one-click call service for famous doctors. However, the disadvantages are lack of penetration into hospitals and medicine.

The three major strategies now are:

Product strategy: innovate membership service, upgrade insurance cooperation model, and continuously launch new products

Ecosystem strategy: to create a new ecology of "medical and health +", and to form a layout for Internet hospitals, pharmacies, clinics and other formats.

Globalization strategy: output of AI-assisted diagnosis and treatment technology, high efficiency replication and exploration of globalization development

B) income analysis:

In 2019, the company achieved operating income of 5.065 billion yuan, an increase of 51.8% over the same period in 2018. With the enhancement of management efficiency and business operation capacity, Ping An Healthcare And Technology's net loss narrowed to 747 million yuan in 2019, and the net loss rate decreased to 12.7% from 27.4% in 2018.

Ping An Healthcare And Technology'sFour main lines of business:

Online health care: specifically forCommercial insurancePolicyholders provide services such as 7x24 online consultation, referral, registration and one-hour drug delivery.

Consumer health care: a standardized portfolio of services, such as physical examination, genetic testing and medical beauty

Health Mall: medicines, health and nutrition and medical devices, fitness equipment and accessories, personal care products and others

Health management and interaction: health plans, tools and activities and personalized content services.

In 2019, the business income of the online medical sector reached 858 million yuan, an increase over the same period last year.108.9%The operating income of the consumer medical sector reached 1.112 billion yuan, an increase of 22.9% over the same period last year.

In the Health Mall sector (the largest source of income), the operating income reached 2.902 billion yuan, an increase of 55.7% over the same period last year, while the operating income of the Health Management and interaction sector reached 193 million yuan, an increase of 22.7% over the same period last year.

3) clove garden

Is the largest community of professional doctors in China, founded in 2000, the original intention is to build a professional platform for academic exchanges with doctors as the core. High-quality doctor resources have always been the core resources of the lilac garden. At present, the lilac garden has 5.5 million professional users in the medical industry, including 2.1 million doctor users, covering more than 70% of the doctors in China.

At present, the lilac park has completed the business layout for doctors, pharmaceutical companies, medical institutions and patients, and the services provided by various business lines are becoming more and more perfect. It is understood that DXY cooperates with multinational and domestic pharmaceutical companies of Top 50, and a large number of domestic third-class hospitals and excellent private medical institutions are its customers.

The business model of Dingxiang Garden is relatively unique, based on the initial development focus on the doctor community forum, mastered the unique doctor resources. Dingxiangyuan revolves around the core group of doctors in the medical industry, creating a connection platform to connect doctors, medical institutions, pharmaceutical companies, medical equipment providers and patients, ordinary consumers and so on.

Summary:

The emergence of the Internet is to solve our reality of "difficult to see a doctor" this link, for the traditional offline medical treatment is only a supplementary channel, to a certain extent, to solve the problem of misallocation of medical resources. But,At present, there is not yet a market-proven business model for Internet medical care.Each platform strives to integrate branch mainline and medical resources.

The biggest highlight of the micro medical group is through the platform to help the government to share medical data, the close cooperation between large hospitals and grass-roots hospitals, to get through the online and offline, appointment registration to solve the most urgent needs of patients. Ping An Healthcare And Technology relies on Ping an Group, and Ping An Healthcare And Technology has a natural "insurance gene" that can solve problems such as registration of famous doctors for patients. Dingxiangyuan is around the most professional doctors in the country, the main users locate professional doctors, and build the platform structure.