In 2020, the COVID-19 epidemic has made people more aware of the value of life and health, and also made people call for Internet medical care to enter thousands of households as soon as possible.
On September 22, China Ping An’s Investor Open Day comprehensively shared with everyone the construction of Ping An Group’s entire medical ecosystem for the first time. At the meeting, Ping An not only demonstrated its strong ecological strength, but also painted a broader blueprint for its ecological picture.
1. Prescribe ecological prescriptions for the pain points of the medical industry
Chen Xinying, co-CEO of Ping An Group, said: "When we do medical care, we don't just want users to buy more insurance policies. We want to truly Solve China's medical problems. "
The medical industry is very complex. At present, my country's population is aging rapidly, and the pain points of all parties in the medical ecosystem are still prominent. For example, there are insufficient medical staff and poor professionalism in grassroots medical care; medical treatment is difficult and expensive for residents; medical resources are unevenly distributed in institutions, and minor illnesses are treated in large quantities, and the public trust is insufficient; medical insurance policies in many cities are very different, and data is not connected, etc.
It can be said that medical problems are present in all aspects of this industry, and the problems are all interrelated. It cannot just treat the headache and the pain, it is very difficult.
However, if we look at the market size, it is expected to increase from 6 trillion yuan to 16 trillion yuan from 2019 to 2030. Whoever can crack this hard nut will gain huge benefits and a bright future. As "Healthy China 2030" has become a national strategy, Ping An has accelerated its investment in the medical and health field and has recently upgraded its medical ecosystem strategy.
At present, Ping An has built a comprehensive medical and health ecosystem covering "technology-based, user side - service provider - payment side - government side". As of the end of June 2020, the medical and health ecosystem covered more than 370 cities, 17,000 medical institutions, and 346 million users. Using Ping An Good Doctor as the entrance, it connects Ping An Life, Ping An Pension, Ping An Health and other companies to serve a large number of online and offline individual customers; it empowers government regulatory authorities and medical service participants through Ping An Smart City business; it establishes a business through Ping An Healthcare Technology The intelligent medical service platform empowers payers such as medical insurance bureaus and commercial insurance companies.
On the user side, Ping An Good Doctor provides one-stop medical and health services to more than 346 million users. Ping An Good Doctor relies on its own full-time medical team and self-developed artificial intelligence-assisted diagnosis and treatment system to connect online and offline to provide users with timely and high-quality online medical services, covering 7 × 24 hours online consultation, health management, Full-process services including prescription, registration, second diagnosis and treatment opinion, and one-hour medication delivery. As of the end of June 2020, Ping An Good Doctor had served more than 346 million users, with nearly 825 million online consultations in the first half of the year, and its own full-time medical team of 1,836 people. In addition, Ping An Good Doctor has empowered ecosystem partners with high-quality resources such as AI technology and medical services. The cumulative number of cooperative hospitals exceeds 3,700, including nearly 2,000 tertiary hospitals; the number of cooperative pharmacies exceeds 111,000, covering 371 cities across the country.
On the service provider side, Ping An has built an intelligent integrated platform for government regulatory authorities and medical service providers covering the entire process before, during and after diagnosis. At present, Ping An Smart Healthcare has covered more than 17,000 medical institutions, providing a full range of services including an integrated supervision platform, intelligent disease prediction, intelligent imaging screening, and auxiliary diagnosis and treatment tool AskBob. In the first half of the year, the cumulative number of calls to AskBob reached 22.04 million. times, benefiting approximately 413,000 doctors.
On the payment side, Ping An Healthcare Technology is committed to becoming a smart technology company that fully empowers the medical ecosystem, focusing on medical insurance to achieve empowerment, and by providing its own software and services to promote medical insurance, medical care, and medicine. The three medical institutions work together to achieve the goals of reducing medical costs, improving service experience, and improving security levels. With the smart medical insurance system as the core, Ping An Medical Insurance Technology builds an integrated smart medical insurance platform to empower the medical insurance bureau; at the same time, starting from medical insurance, it actively extends to create comprehensive medical management solutions around hospitals, doctors, pharmacies, and insured persons; in insurance Empower commercial insurance companies in aspects such as product design, risk control and marketing channels. Up to now, Ping An Healthcare Technology has won bids for platform construction projects in multiple provinces.
On the government side, Ping An has established digital governance systems such as "medical insurance fee control" and "smart health care" for regulatory authorities by building a medical and health big data platform. During this epidemic, Ping An Smart Healthcare's "AskBob Health" COVID-19 epidemic prediction and analysis system can continuously provide "second-level" refresh frequency for more than 200 local governments across the country, including Wuhan, Beijing, Chongqing, and Shenzhen. Provide real-time information monitoring and epidemic prediction with an accuracy of up to 99%.
In the future, Ping An will continue to build a closed-loop medical ecosystem from five aspects: government, users, service providers, payers, and technology, seize the huge development opportunities in the medical and health market, and create new opportunities for the company's future value growth. engine. Specifically, Ping An's medical ecosystem will focus on three major directions: first, horizontal integration, starting from the user end to capture user traffic, long-arm management of institutions from the payment end, and empowering service providers to maximize value; second, vertical Through serving the government, we leverage the core resources of hospitals, doctors, and medicine, and use technology to empower ecosystem members and establish barriers to competition; third, we work with Ping An Financial’s main business to acquire customers, increase customer stickiness, and increase customer average. value and other aspects to generate synergistic value.
Among them, Ping An Smart Medical serves the government, Ping An Good Doctor occupies the user and online medical service end, Ping An Smart Medical occupies the offline medical service end, Ping An Life, Ping An Pension, Ping An Healthcare Technology, Ping An On the health insurance service payment side, Ping An Medical Technology Research Institute and others provide technical research support. Ping An's medical ecosystem includes a number of online and offline medical and health-related companies, and their businesses effectively complement each other. Ping An is preparing to use the medical ecosystem as a prescription to break through the current blockage of China's medical industry.
2. Technology empowers the ecosystem and drives synergy effects
Although the development of the medical ecosystem is not just for policy growth, there are natural scene synergies in the medical and Ping An Group’s main financial businesses. From a strategic perspective, the medical ecology and financial ecology of the entire group can help each other.
The growing medical ecosystem has achieved remarkable results in empowering Ping An Financial’s main business. It was disclosed for the first time at this open day that Ping An’s 15 to 20 new financial customers every year come from the medical ecosystem. The average number of contracts for financial customers using medical ecosystem services is 3.1 (2.0 for those who do not use medical ecosystem services). The AUM of financial customers served is about 10,000 yuan (the AUM of those not used is 5,600 yuan). In the future, the synergy between the medical ecosystem and the main financial business will be further reflected in products, traffic, services, technology, costs and many other aspects.
Ma Mingzhe once used "three empowerments" to describe the three stages of Ping An's development: technology empowers finance, technology empowers ecology, and ecology empowers finance.
Today’s rapid rise of the medical ecosystem is precisely due to the empowerment of technology, and the rising medical ecosystem has also empowered the main financial industry. You may not have fully understood its meaning before, but now it makes sense.
Today, Ping An also showcased the world’s leading medical technology for the first time. Its core advantage is leading data and knowledge.
Xie Guotong, chief medical scientist of Ping An Group, introduced that relying on the group's five major medical databases (disease database, medical product database, prescription treatment database, medical resource database, and personal health database), the world's leading medical data center has been established, of which the disease database contains approximately 100,000 disease concepts, 420,000 disease terms, etc.; the medical product database includes 180,000 drug instructions, 84,000 Chinese medicine recipes, etc.; the prescription treatment database contains 150,000 prescription information, 30 million medical literature, etc.; the medical resource database includes Information on 500,000 Chinese doctors, 2.2 million scientific researchers, etc.; personal health database contains 1 billion diagnosis and treatment information, etc.
Xie Guotong also introduced that Ping An’s leading data and knowledge has become the largest medical knowledge base with the most advanced technology, the most complete dimensions and the most abundant applications. This knowledge base information is used through Ping An's "Medical Brain" to support artificial intelligence decision-making and is widely used. At present, Ping An has the world's largest intelligent diagnosis assistance platform, the world's largest chronic disease management platform, the world's largest medical database, and the world's second largest number of medical technology patent applications, and has world-leading technological strength.
Ping An invests 1% of its operating income every year in the research and development of innovative technologies, a large part of which will be invested in the medical ecosystem. Ping An was originally an insurance company, and then transformed into a technology company. Judging from today's strategy, Ping An may become a medical technology company in the future.
3. Key position in the medical ecosystem: Ping An Good Doctor
Ping An Good Doctor has become an important member of users and service providers in Ping An’s medical ecosystem strategy and is China’s leading Internet medical service. The platform occupies a key position in Ping An’s medical ecosystem.
Ping An Good Doctor can provide diagnosis and treatment of over 3,000 common diseases to 346 million users, with an average daily consultation volume of 830,000. At the same time, Ping An Good Doctor has the largest self-built doctor service group in China, with a medical team of more than 1,800 people and nearly 10,000 experts across the country. It has also established the largest offline service network, including 110,000 cooperative pharmacies and 49,000 cooperative pharmacies. Clinics and more than 2,000 medical examination centers. In the first half of 2020, Ping An Good Doctor's operating income increased by 2.1 to 2.75 billion yuan year-on-year, of which online medical revenue increased significantly by 10.7 to 695 million yuan.
In addition to serving individual users, on the B-side, Ping An Good Doctor has created professional, convenient and secure corporate clinics for corporate users, covering more than 500 companies; on the H-side, Ping An Good Doctor has 14 Internet hospitals are online, and 3 of them have access to medical insurance.
During the peak of the epidemic this year, the number of new user registrations on the APP main website reached 10 times that before the epidemic, and the average daily consultation volume of new users reached 9 times that before the epidemic. On May 15, Ping An Good Doctor announced that the board of directors appointed Mr. Fang Weihao as executive director, interim chairman of the board, and chief executive officer.
Whether the ecosystem operates smoothly or not, the CEO of Ping An Good Doctor is very critical as the link between the ecosystem.
Giving such a key position to Fang Weihao shows that he is definitely not an ordinary person. For his efforts and achievements in the field of business innovation, he was awarded the "Shanghai Leading Talent" by the Organization Department of the Shanghai Municipal Party Committee and the Financial Working Committee.
Fang Weihao, 47 years old, holds a PhD in applied economics from Xi'an Jiaotong University. He is currently the co-chairman and CEO of Ping An Healthcare Technology and the chairman and CEO of Ping An Leasing. He has rich experience in corporate management, finance, especially medical technology. , possessing excellent strategic leadership and outstanding performance contributions.
Important people go to important positions, which shows that Ping An attaches great importance to the medical ecosystem.
This appointment will help seize the major development opportunities in the Internet medical industry and further open up the closed loop of Ping An Medical and health ecosystem.
In order to cooperate with the strategic upgrade, Ping An Good Doctor launched a new service brand "Ping An Doctor Home" at the Open Day event. According to Fang Weihao, its mission is to build a professional communication bridge between doctors and patients, and is committed to building China's largest Internet medical service platform with the most advanced model and the strongest competitive barriers. In the future, it will make efforts to improve the existing doctor system and launch innovative products, etc. .
Starting from mid-2020, Ping An Good Doctor will focus on comprehensive strategic upgrades in three major directions: channels, services, and capabilities, and gather patients through four major channels: individual users, insurance services, corporate services, and Internet hospitals, and It provides "medical health" and "private doctor family doctor" medical and health services, continuously strengthens and expands its self-built external doctor network, focuses on online medical care, and continues to open up offline services.
4. Conclusion
Although this year’s epidemic has had a huge impact on the social economy and people’s lives, on the other hand, it has also greatly promoted the demand for Internet medical services and also recognized that The medical industry has many deficiencies that need to be addressed as soon as possible.
In the past 30 years, the only industry that has survived financial crises and epidemics is the medical industry. In the past 10 years, it has ranked second, and the only company surpassed it is technology companies. Because the returns have been steady in recent years, but in the past 30 years, medical investment has ranked first in the global industry.
Because medical care is people’s livelihood and a necessity. But to make this money, you must solve the pain points in the ecosystem. And given the size of Ping An Group, only by solving big problems can we get big returns.
It’s hard to say how much share Ping An can capture in the 16 trillion market. However, compared with Ping An’s multi-trillion life insurance market share of about 17, assuming that with the help of the synergy of the financial ecosystem, Ping An’s medical ecosystem can only obtain a market share of 10, even if it is only given a net interest rate of 10 and a PE of 10 times, the valuation The level is also 1.6 trillion. In the future, the medical ecosystem is expected to become a new growth engine for Ping An Group.
Building a medical ecosystem also embodies the saying in Spider-Man, "With great power comes great responsibility." Chen Xinying said, "The medical ecosystem is one of the cores of Ping An Group's long-term strategy. After more than 20 years of hard work in the medical and health field, Ping An has become China's leading medical and health company. We hope to build a strong technology ecosystem by building a closed loop of medical ecological services. Barriers, committed to actively supporting the construction of a healthy China, improving people's health, seizing market development opportunities, and creating greater value. "