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April 26, 2020 Under the Internet into the medical line can revive?

Complexity and subject to a single payer health care system in China, the Internet is facing great development of medical difficulties. In addition some companies have better resources or deep plowing in the industry for many years, other companies rely on capital spelled out in the short term are faced with greater challenges.

Under Online has been unable to continue to the capital markets in the context of a story, the story line under the Internet has become a lifesaver medical. Whether clinics, community health centers or directly into the hospital to acquire the line, we have a story to become the next picture.

But in the Internet into the medical line unaided to its own business expansion, capital market cooling in reality, if it blindly stick to the Internet thinking that using the Internet will be able to + line medical rescue it would be ignorant to the trend.

First, the current system’s inherent contradictions Chinese medical decisions medical asset management can not light the line

Internet companies to enter the line next few medical uses asset-heavy, relying on a large number of self-employment of doctors to conduct business. But continue its asset-light business model, set up by the line platform to attract more practicing physicians, or simply to promote the business development of direct cooperation with the next line of medical institutions.

The biggest problem of this model is that, even if accompanied by a full range of facilities, physicians source also extremely unstable, difficult to form a continuous users. If the general practitioner, the patient did not recognize, we are not willing to pay a relatively high consultation fees; and if the doctors, the user is relatively limited and can not be large-scale expansion.

Of course, after a certain period of time after the attempt, some of the well-funded Internet companies are trying to buy the medical line at community hospitals or higher level hospital, in order to truly expand their business. But the total amount subject to any hospital paid health insurance, its growth is very obvious bottleneck. Although we found a way to pay part through this method, but the market is still very weak scalability. Intended to several community hospital or a medium-sized hospital market is basically leveraging would not be possible. However, the Internet once again to the hospital such story mode provides a breakthrough.

According to the logic of the Internet hospital, the hospital as long as there is a solid line can be carried out under rapid expansion and replication, thereby creating an entirely new market. But as a variant of telemedicine in China, the Internet can not be away from the hospital telemedicine own characteristics, whether it is a serious illness for consultation or referral for chronic diseases are just a very small minority of the market.

Although the body can hold up a large enough amount of the market, but in China, due to the cost of medical services their prices have been very low, the lack of control fee payers on the remote interrogation wishes for ailments interrogation. Thus, the Internet may be the only hospital in China and two second-class top three hospital expansion tool, which greatly reduces the overall size of the market.

The medical consulting firm Latitude Health estimates, the market size of Internet interrogation hospital can only reach 2.73 billion yuan in 2020, in which the size of the market and drug services revenue income of 4.8 billion yuan and 2.24 billion yuan.

Secondly, the regional medical properties strong, can not be rapid expansion

Trying to build a line under the platform relies on more practice to achieve rapid expansion mode, itself faced with the inherent paradox. Service quality of doctors is relatively limited time, and the patient does not recognize the doctor although has a relatively ample time but can not get the user. By entering the line also means that the original national rapid expansion of the Internet mode can not be copied to the line.

Although, from dining and FMCG stores of view, even from the point of view of the expansion of the pharmacy, maturity model can be replicated nationwide fast. But in the area of ​​health services, subject to the differences over the policy and consumption ability and willingness, especially the lack of doctors, medical services, the possibility of rapid expansion in the country is very weak, can only be obtained in the development of the regional market, but also as heavy assets industry, the overall development of the market will be relatively slow.

Finally, the payer coverage is weak

Even online business, it takes years, the need to borrow Dongfeng commercial health insurance. That the use of full self-mode hire doctors to develop their own, but also face restrictions business model. If Medicare limit mode, you can only profit by the pharmaceutical supply chain, it is difficult to obtain really trust the user can not establish a new brand image clinics, can not compete with large hospitals.

If you do not rely on products to profit, although the dislocation can compete with the big hospital, but still need the help of commercial health insurance to pay for the relatively high cost of medical services. In the current health insurance has not yet obtained the premise of large-scale development, medical services offline also difficult to obtain rapid development.

Overall, health care can not be revived in the Internet into the medical line. Medical nature is a slow and heavy industry, the Internet can not carry the required growth. Especially in China, a medical market distortions, any innovative services are difficult to really expand, because to rely on profitable products and services will ultimately destroy the essence of innovation, to the original product and simple logistic regression. Of course, for those who truly adhere to service innovation company, as long as the strategy properly, can still get a development to a certain extent, with the change in the situation payer and obtain the final market.

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