Author：Qin Yi  Translator: Jiangmin Wang

Publisher: GPLP

Although the medical and health industry is not an crash-prone industry, it is still difficult to balance between medical and insurance. How much help does the investors bring, and whether the security is standardized or not? Whether the business model is clear or not? How to commercialize on a large scale? The problem of vague positioning is in front of medical entrepreneurs.

A few days ago, at the 2018 Medical Investment Summit hosted by GPLP, the guests had a heated discussion.

Linhai Chen: Start with a business model roadmap before finding a partner.

Linhai Chen,a Founder of Life Commune

Life commune is a comprehensive lifestyle service provider, focusing on hotel operations, healthy town operations and community-based life management. With the core of the TCM diagnosis and treatment system, combined with Western natural therapy and modern life science frontier technology, we will build a comprehensive healthy life-cycle management service system for sub-health, chronic diseases and post-treatment rehabilitation, providing short-term accommodation therapy and full-cycle life quality management services.

We are positioned to manage health and provide services in three areas.

First of all, we provide check-in health conditioning and health intervention services by adopting the health care base of Life Commune as the entrance and scene .

Secondly, we provide a full range of medical services, mainly through interface with existing platforms including Micro-medicine and Chunyu, with which we are currently negotiating for cooperation  .

In addition, we provide comprehensive management of lifestyles, select health care, health services and products on a global scale, integratee various resources, and provide a precise, personalized, life-cycle healthy life for the health and needs of members and their families. The solution is to create customer loyalty through a full range of lifestyle management.

The realization of the business model and the current marketing work mainly start from three aspects:

First, the transformation of the hotel’s existing traffic. After cooperating with the life Commune, the average occupancy rate of the hotels in 2018 has reached 80%. The conference and accommodation have more than 15,000 customers per month. The hotel uses a full range of advertising to make customers  understand and choose health services, and realize the transformation of the original passenger flow.

Second, network marketing promotion. Network promotion are carried out by mature medical industry marketing team through platforms including  Baidu, Public Comment, Jingdong, Today’s headlines, directing online traffic to offline, attracting customers to the life commune to participate in activities and experience health services.

The third is channel marketing. We now make the life commune a platform, with the life commune as the strategic support, the Damei Xiangshan as the industrial stage, and with the life industry as the core engine to bring together public welfare, tourism, agriculture, information, sports, education and culture, to create an industry IP incubation and integrate operation platform, to promote the development of related industries, become mutual engine, mutual channel flow, mutual empowerment, and create “qualified gene, diverse species, mutual benefit” health industry ecosystem.

On the basis of a formulated  business model road map, we then start to find investors. Therefore, we are cleared about what kind of partners are needed for each stage.

By now, the business model has been formulated, and product R&D and other work also have been completed. Brand reputation has been initially established, and technical barriers have taken initial shape. Against such a complicated market environment, we are thinking about introducing partners with  traffic volume and  promoting this model as soon as possible so that we can realize the rapid growth of the company and to lead competitors. After the in-flow of traffic, the next strategic focus will be the way to amplify the traffic. Therefore, recently we are negotiating  with relevant institutions, including insurance companies, tourism companies, medical institutions, and some online Internet agencies about how to combine the company’s products with technological advantages,funds of investment institutions and traffic volume for the  rapid growth of the company.

Bochuan Lin: Medical insurance and hospitals will face an attack in the future

Bochuan Lin, vice general manager of Sinopharm Medical Operations

In recent years, a series of changes occurred, such as the zero-addition of medicines, the establishment of the Medical Insurance Bureau, the reform of military hospitals and enterprise hospitals. In fact, these are the changes in the medical, medical insurance, and medical care linkages that we often say. Investment opportunities always come with changes. Where is the investment opportunity mainly reflected?

First, at the medical level, it is mainly investment and merger of hospitals.

Second, at the level of medical insurance, it is mainly investment in commercial insurance.

Third, it is difficult for the medical Security Bureau and the hospital to balance the standards for the use of medical insurance funds. There will inevitably be third-party evaluation agencies, which are also the investment direction.

Fourth, at the medical level, China will pay more and more attention to the research and development of independent drugs. In the future, new drugs are also investment directions, but they need long-term capital.

However, from every aspect, the investment needs to be operated finely, so that the investment can be finally successful.

So how to operate the company after the investment?

To put it simply, it’s to simplify complicated things. The operation is actually how to connect the products in  hand to the customers.

First, most private hospitals currently pay more attention to marketing rather than  products.

Second, public hospitals  mainly care about brand, with more focus on medical management rather than cost control. As for whether patients are buying or not, it is not of particular concern.

Third, although public hospitals and private hospitals are aware of their own problems and are trying to make changes with various measures, they still need time and process, so I personally think that if the operation manages to combine the medical management of public hospitals (branding) and the operation of private hospitals (marketing) organically, it is a relatively successful operation.

Lishui Xu: Internet medicine may become a whole concept

Lishui Xu, Founder of the Yixin world

Yixin world is a huge medical data innovation application and medical big data solution company. Based on big data, it has made a list of Chinese hospital influence rankings. The application of the rankings is to guide patients to seek medical treatment accurately.

Our business model is to achieve cash realization when the hospital is doing data calculations. In the future, data will be provided to patients through the calculation of established models, data analysis will be provided, and patients will be given health care and disease diagnosis. If the patient checked in successfully, more data products can be made and then be realized.

There are many unsuccessful cases in medical big data, most of which are calculated with clinical data. Clinical data are not necessarily Internet data, so it is difficult to calculate the results. Yixin world proposes data standardization, and standardized data are the Internet Medical data. According to the principle of Internet winners, at all, I personally think that there is only one kind of medicine in the future, that is Internet Medicine, also called data Medicine. Under the background of data medicine, both Chinese medicine and Western medicine will merge, and Internet medicine may become a whole concept.

Jianping Zhu: The most important thing in medical entrepreneurship is getting money.

Jianping Zhu: Tongdu Capital Partner 

At present, Tongdu capital is mainly concerned with two directions. One is an application, about the new technology direction.

The second is medical, to the digital medical direction. In the aspect of digital medical care, we are a relatively focused GP in China.

Where are the opportunities in the field of heart and cerebral vessels  and tumors?

First, there are opportunities from the perspective of technology. Because so far, in the field of tumor, one is that the tumors in China have been discovered very late, and the other is that the level of tumor treatment in China is relatively low.

Second, although we have a big gap with foreign countries, we have some opportunities in terms of genetic means and medical apparatus and instruments.

For entrepreneurs, the most important thing at the moment is to take the money quickly, even the price is low. What is the reason for this?

One of the causes for the death of start-ups is lack of money. The indirect problem is that the product is not working, but as long as there is money. It can be sustained. Many companies can live through.

Chun Yu doctor CTO Baiyi Zeng: The future development focuses on grading diagnosis and treatment

Chun Yu Doctor CTO Baiyi Zeng

Dr. Chun Yu is the earliest in medical innovation and the largest company in the world. What was widely criticized in the field before was that there was no business model, or it earned no money. So how is it now?

At the end of last year, the commercialization business of Dr. Chun Yu’s consultation broke through 100 million, and the overall growth rate reached about three times. So how will Dr. Chunyu go in terms of development and commercialization?

First of all, in terms of development, what we need to do next is user-oriented grading diagnosis and treatment, and help users make medical decisions from the perspective of users. Based on this kind of trust relationship, we can extend our business model, including diverting quality medical institutions, or personalizing health insurance for users, or selling high-quality and cheap drugs to users.

Followed by is the business model. The first is the business that Chunyu is currently doing. At present, more than 80% of the problems are paid by users. The second is to establish a system of follow-up payment services, such as hospitals, pharmaceutical companies, a payer institutions such as insurance companies, we hope to establish a longer-term relationship with users.

In the process of development, investment institutions have given us a lot of help.

The first is all-round help, such as providing funds to help Dr. Chun Yu gets doctors and users in the early days of mobile Internet development. If you start doing this now, you can’t do it anymore, because now the cost of getting the doctor’s customer and the cost of getting the user’s customer have far exceeded that of the year.

The second point is that many early investors have organized a lot of training for entrepreneurs, and they have given very good advice on various management things.

A big problem with the medical innovation industry is that we are a cross-border project. The team responsible for TMT in the investment fund feels that we are a TMT project, and the team responsible for the medical care feels that we are a medical project. So when it comes to talking with investors, what we often face is that we have to convince TMT investors and medical investors at the same time.

Xipeng Xue: Chinese medicine can solve many problems and the scope is also very wide.

Qing Lai Health founder Xipeng Xue

Qing Lai Health mainly aimed at minimally invasive surgery of traditional Chinese medicine. The advantages of this operation are: first, minimally invasive, and second, no need for bleeding. The disease part of the spine can be partly replaced or replaced in whole, providing patients with a “green, safe, effective” treatment method that is painless or slightly painful, and while reducing the cost of medical expenses,  bringing the patient to each treatment link with better medical services and better treatment results. So far we have done 40,000 cases without a medical accident.

What is the map of Qing Lai Health?

First of all, from the very beginning, we have positioned ourselves as active health, and we have adopted mobile medical APP as the first-level service platform.

Secondly, we are now doing minimally invasive surgery as Chinese medicine, operating Chinese medicine specialist hospitals, and operating chain Chinese medicine clinics based on special hospital operations.

Of course, investment institutions have also given us a lot of help in development.

First of all, it is the grasp of the direction. Our team started from the beginning with O2O door-to-door massage service, which is aimed at the health of the spine, and has not changed direction until now.

Secondly, in the landing of specialist hospitals, we have done a lot of strategic planning in personnel training and system construction of minimally invasive surgery for Chinese medicine.

Chinese medicine can solve many problems, but the scope is also very wide, so we need to focus more on a specialist treatment field, that is, the field of traditional Chinese medicine orthopedic diseases, in order to make a long-term strategic development to solve some specialist diseases.