Tech firms revolutionize sector by partnering with public hospitals and acquiring private ones
Like many people in China, Chen Hua (not her real name), a 60-year-old resident of Guangdong province, used to hate visiting hospitals because she had to wait in serpentine queues every time she required to see a doctor, pay medical bills and buy the prescribed drugs from the hospital pharmacy.
But now, she has a better alternative. Chen visits a nearby drugstore where she gets to interact with doctors at big hospitals via video calls. Using online tools, the drugstore people transmit readings of her blood pressure and temperature to the doctors concerned.
Chen recently suffered from backache and had an online diagnosis with a doctor from the Guangdong Internet Hospital, which is operated by the Second People's Hospital of Guangdong province.
"The doctor prescribed medication online, which I could immediately buy," she said, "Previously, it took me four fours to see a doctor, but now the entire process takes less than 10 minutes."
Chen is among a growing number of patients who are benefiting from the country's booming internet-based or online medical services. Technology companies are rushing to revolutionize the sector by partnering with public hospitals and acquiring private ones.
Dozens of online or internet-based hospitals have popped up across China since the end of last year. Starting March 29, at least six new internet hospitals have been established in six provinces within a week, fueled by strong support from local governments.
Internet heavyweights Alibaba Group Holding Ltd and Tencent Holdings Ltd, as well as a string of startups and local companies, are all eyeing the niche.
Jiang Xinwei, an analyst at Beijing-based internet consultancy Analysys International, said the domestic internet-based healthcare industry has entered a new stage, after several years of explosive growth in basic online medical services such as making appointments with doctors and paying medical bills.
A report by Analysys International said the online healthcare industry was worth 11.3 billion yuan ($1.75 billion) in 2014, up from 5 billion yuan in 2011. The figure for 2015 will likely be 15.7 billion yuan, Analysys predicted.
