2020 is a milestone moment for the field of chronic disease management, ushering in a bright moment after the “Hundred Sugar War”.
At the just-concluded “Fifth Future Medical 100 Strong Conference”, many entrepreneurs and industry professionals focused on the health management sub-forum, and conducted comprehensive in-depth interpretations and discussions on the current service innovation and market trends of chronic disease management. CloudrCPO and Vice President Yang Wenlin was invited to attend and gave a special report on “Internet + Chronic Disease Management “China Model”, which triggered heated discussions on the spot.
It is not difficult to see that the “re-emergence” chronic disease management has received widespread attention and enthusiasm in the market, and it is gradually becoming the next direction in the Internet medical field. But the development of everything has a law to follow. For the field of chronic disease management, what is driving it to “out of the circle again”? Facing the new market structure, what kind of solutions should be built by the companies in the deep track to make themselves quickly “landed?” In response to these questions, Artery Network will find the answers one by one from Ms. Yang Wenlin’s report.
From the “Hundred Sugar War” to the “Second Out of the Circle”, what did chronic disease management experience?
According to statistics, in 2015, the number of mobile medical apps reached more than 2,000, among which there were more than 700 apps related to diabetes management, accounting for about 30% of the entire mobile medical APP market. “It’s on the verge.
However, the excitement is always temporary. After the tide ebbs, the diabetes market has entered the “Warring States Period” from the initial “chaotic war”, including the big sugar doctor, micro sugar, Cloudr, sugar doctor, and sugar nurses. All APPs are accelerating their exploration of their own business models and are trying to “build a wall with a large accumulation of grain” in order to stay in the tens of billions of market share.
However, in the field of chronic disease management, it is not easy to pick the ripe “fruit”. It takes a long time. However, such a long wait is enough to wipe out the patience of enterprises and capitalists. Everyone chooses after the excitement. “Exiting”, the management of chronic diseases also entered the “cold palace” and disappeared in the crowd for a while.
Entering 2020, this situation has begun to reverse. Under the epidemic situation, two major factors have made people from all walks of life focus on the management of mobile chronic diseases: firstly, due to low physical function and immunity, the elderly, especially those suffering from chronic diseases, have become a high incidence of new coronary pneumonia; secondly, Road closures caused by the epidemic and the need to avoid cross-infection in hospitals have made chronic disease management based on the Internet necessary.
As Ms. Yang Wenlin mentioned in her speech, chronic disease management will suddenly become popular in 2020.
The new landscape reshapes new competition. What is the real appeal of chronic disease management?
When talking about chronic disease management, we have to mention the American intelligent chronic disease care platform Livongo. As a recognized “milestone” company in the industry, Livongo, founded in 2008, has a market value of more than ten billion U.S. dollars in just 6 years, and was listed on the Nasdaq in July 2019, becoming the “first in chronic disease management” share”. One year after listing, Livongo was acquired by global digital medical giant Taladco for US$18.5 billion, and the new company’s valuation is expected to reach US$38 billion.
Livongo puts forward the concept of Applied Health Signals (Applied Health Signals) in response to the demands of insurance companies and enterprises. Its business model is mainly to provide integrated health management services for patients with chronic diseases through the “AI+AI” intelligent system. To solve the demand of American commercial insurance companies to control fees, the B-end payment is the main source of revenue.
Livongo’s business model is very clear and simple, but in the view of Ms. Yang Wenlin, such a “successful model” cannot be copied into the field of chronic disease management in China.
Specifically, there are fundamental differences in the medical security system between China and the United States, the most obvious of which is the huge difference on the payment side. The United States is a country with an extremely developed commercial insurance market, with a commercial insurance coverage rate as high as 80%. The annual commercial insurance expenditures accounted for 10% of the US GDP in the past two years. Among these commercial medical insurances, 90% are for enterprises. For the medical insurance provided by employees, when it comes to payment, the company needs to pay 80% of the insurance amount, and employees only need to pay the remaining 20%.
Compared with China, the basic medical insurance and critical illness planning are still the mainstays on the payment side, and self-financed and commercial insurance are supplemented. Therefore, for domestic chronic disease management companies, it is not in line with the current actual situation that commercial insurance companies are the main service objects. .
In addition to having a clear payer, the biggest factor in Livongo’s success is to grasp the market demand. As far as insurance companies are concerned, the less medical expenditures of corporate employees, the better. Relatively healthy employees, chronically ill employees are the majority of insurance companies paying. Therefore, companies urgently need to introduce feasible solutions for employee health management to reduce subsequent follow-ups. Medical expenses. So where are the pain points in the field of chronic disease management in China?
The first is the inefficiency of medical services that cannot be guaranteed. In recent years, my country’s medical system has achieved rapid development, but 90% of patients are still focused on 35% of the second and third grade hospitals. Therefore, the unbalanced medical resource supply relationship still exists, and the overall diagnosis and treatment efficiency is still low. On the other hand, unlike other single-disease areas, the diagnosis and treatment cycle of chronic disease management is relatively long, and patients need to go to the hospital multiple times for treatment. Inefficiency will not only make the quality of patients’ medical treatment not guaranteed, but also make patients’ medical experience dramatically drop.
The second is the lack of patient compliance. The lack of awareness of patient management and control makes it difficult for hospitals to play the role of continuous administrators. In the traditional chronic disease management model, most of them rely on drugs for management, or the thinking of “treatment of the disease” without a systematic prevention and control plan. In the front, middle and back of the patient’s diagnosis and treatment, it is difficult to have a continuous connection. In particular, there is an “islanding effect” in the monitoring of indicators of patients’ own chronic diseases, which leads to unsmooth management of doctors and unsmooth management of patients.
Finally, medical insurance coverage is insufficient. A complete and clear payment system has always been a key factor supporting the development of the medical sector, but as far as the current chronic disease field is concerned, its system construction is not perfect. Taking personal payment as an example, basic medical insurance and commercial insurance account for 54.7%, while the self-pay ratio is 45.3%. Patients with chronic diseases urgently need a more effective and economical payment plan.
To solve these problems, “digitalization” may be the best answer. As Ms. Yang Wenlin said, China’s chronic disease management is an area that urgently needs digital transformation, which is reflected in its relatively large population base, particularly long management cycle, and strong individual needs. Through digital technology, it can be widely used. Intervention in multiple links such as pre-monitoring, tracking management, and personalized chronic disease management services can provide patients with convenient services at various business ports.
When the tide recedes, who is the most powerful person to “shore”?
The epidemic has brought new vitality to the management of chronic diseases, but if we want to go beyond the short-lived prosperity, we must try our best to overcome various obstacles that affect long-term development. This is the key to its market competitiveness, and it also makes companies surging. The floating board that finally “goes ashore” after the wave.
As a “benchmark company” for chronic disease management in China, Cloudr has become a leading unicorn company in the industry and has gradually explored a Chinese sample model for chronic disease management.
Specific to the subdivisions, as China’s largest one-stop chronic disease management and smart medical platform, Cloudr specifically developed the chronic disease management SaaS platform “Zhiyun Medical Hui” with the highest coverage of mainstream hospitals in China in response to the needs of hospitals. The largest out-of-hospital communication service platform for chronic disease doctors and patients is “Zhiyun Internet Hospital”. The former focuses on building a platform for the hospital to improve the overall operating efficiency of the hospital; while the latter focuses on providing services to patients, by strengthening the communication between doctors and patients, the patient’s treatment effect can reach the best state.
In terms of drugs that chronic patients have long-term needs. Starting from the actual needs of patients and pharmacies, Cloudr meticulously created the most cost-effective pharmacy prescription business SaaS platform “Zhiyun Consultation”. This is Cloudr’s third core product, which aims to improve the efficiency and profit of pharmacies, provide professional and compliant pharmacy and medical services for offline pharmacies, and establish and cover 7*24 health management services at the pharmacy level, thereby Help residents return to a healthy life more conveniently and inclusively.
At the same time, Cloudr is also actively exploring the C-end business, and integrating multiple industry partners such as medical care, media, retail, and communities to form a full-industry chain service platform, creating an innovative model of Internet + chronic disease management. For example, Heya Life builds a smart community health station. In addition, Cloudr also has the largest chronic disease vertical community sweet home in China, with more than 10 million forum users and more than 300,000 daily active users.
On the whole, Cloudr relies on its self-developed hospital SaaS system, pharmacy SaaS system, Internet hospital platform, and CloudrApp. Cloudr has linked different scenarios such as medicine, medicine, insurance, and communities to digitize various collaborating parties in the industry chain. Empowerment, through innovative and scalable solutions to form a strong network ecological effect, and ultimately improve the overall efficiency and service capabilities of chronic disease management.