mHealth and telehealth opportunities in China

Simon Sherrington Managing Director Innovation Observatory Ltd 25 May 2011

We have been working with

Research project to identify: mHealth opportunities and challenges Current mHealth applications Future applications Costs and benefits Implications for main players Areas for potential future research and studies Methodology: desk research, interviews, workshops, field research in China http://www.csap.cam.ac.uk/media/uploads/files/1/mobilecommunications-for-medical-care.pdf

Potentially vast demand for mHealth and telehealth

> 1 million healthcare institutions > 200,000 hospitals > 600,000 village clinics >7.8 million healthcare professionals >1.3 billion people

Map Source: CIA World Factbook

A lot of investment is needed

Health resources per capita, 2007 Health spend per capita, 2006

The government has a major healthcare improvement plan

A ten-year plan: By 2020 a healthcare system that is effective and affordable for all citizens in both urban and rural areas Extra expenditure of CNY850 billion (about 80 billion) Expand the use of medical insurance to at least 90% of the population Improve nationwide access to basic medicine Eliminate the inequality of supply Improve primary-level medical care particularly at county, township and village levels Improve administration, operation and supervision of hospitals

mHealth and telehealth solutions will play their role

Many types of project are in development

Hospital CRM Influenza Epidemic Prevention System

Medicine Link Medical Link Vaccine Link

Remote diagnosis 12580 electronic medical service

Heart Link Mobile Clinic

Video Visitation (intensive care) Video Ward

12580 Electronic Medical Service

Remote consultation, diagnosis and visitation

Information and self-help

Medical Link subscribers and revenues

App stores

New Rural Cooperative Medical System in Guizhou

New Rural Cooperative Medical System in Guizhou

Where are the best opportunities?

Partnering will be critical

Banks and payment companies

Software companies and systems integrators

Health service providers

Health institutions (public and private)

Technology vendors (devices and networks)

Government
Telecoms operators

Insurance companies

Potential for value capture by main actors

Application components Applications Application platforms Telecoms operators System integrators Non-telecom service providers Niche application developers and providers No clear advantage or opportunity Already established Large growth opportunity Communications provision

What it all means for UK companies

Large potential need to close the health gap Hard to access
Strict medical licensing Conservative medical organisations Fragmented system Political hurdles Operators can help They have brand to get you into conversations They have reach into hospitals They are hunting for new business models and ideas Need to show potential for profit concept of health outcomes largely irrelevant

Quickest route in is via local partner with brand