On January 9, 2017, the State Council officially issued “The 13^th Five-Year Plan for Deepening the Medical and Health System Reform”, which explicitly put forward “5+1”tasks. “5” is to establish scientific and rational hierarchical diagnosis system, scientific and effective modern hospital management system, efficiently operated medical insurance for all people, standardized and orderly drug supply guarantee system, and strict and standard integrated regulatory system. This aims to improve the division-cooperation mechanism of upper and lower linkage of medical service system through the forms of medical alliances, medical communities, and special hospital unions. “1”is to comprehensively promote reforms in relevant fields, which is to improve the mechanisms on cultivating, using and motivating talents, speed up the multi-elemental medical operational patterns and promote the construction of public health service system. To the above plan, Mr. Fu Gang, Chairman of BAHEAL Pharmaceutical Group raised 3 opinions.

Initiate “Separation of Hospital, Doctor, and Hospital Information System” to promote the implementation of hierarchical diagnosis.

The so called “SanYiFenHua” is the separation of hospital, doctor and hospital information system. The new reform policy clearly states the strategy of separation of hospitals and pharmacies, which is to control the drug proportion to realize zero price difference and reduce the drug sales function of hospital. Mr. Fu Gang pointed out that presently, a severe siphon phenomenon exists in many of China’s large hospitals who monopolize the majority of medical resources. In addition, the resources configuration is strikingly uneven. It is commonly seen that famous doctors have patients with minor diseases while unknown doctors do not have patients. To solve these problems, hospitals need to improve their function as a platform. The large hospitals have sound research and medical foundations, so they can serve as the basis in building regional medical alliances that link large hospitals, grass-roots hospitals and community outpatients. Even if the investment in informatization in a single hospital is huge, the hospital is still an isolated island of information. Only a third-party with top internet technology, modern hospital management experience and safe medical cloud platform can connect these islands together.

In 2016, BAHEAL Smart Technology, which is owned by BAHEAL Group, launched the Bodhi Medical Cloud which is praised as the “super brain” in the medical field together with 3 top internet and intelligence companies, namely IBM, ORACLE and IPPBX. Besides, it also reached a deep strategic cooperation through PPP model with Qingdao Municipal Hospital (Group), which helped the hospital upgrade to a regional medical center, comprehensively promoted the implementation of hierarchical diagnosis and realized the circulation of medical data.

In February 2017, the Qingdao Health and Family Planning Commission issued the opinions on “About the Municipal Hospital becoming an Internet-based one and Promoting People-oriented Services”, which supports the hospital to actively explore new model of on-line medical health and develop internet-based medical health service.

Mr. Fu Gang said, “The government’s opinions represent its approval of the cooperation between Bodhi Medical Cloud and the Municipal Hospital, which is consistent with the planning policy of new medical reform. The policy emphasizes that we should apply more market-oriented models to coordinate medical industry, further consolidate the concept that medical health industry is not only an industry but also a market, and strengthen the function of market in the industry. We should take this as a model to comprehensively promote the internet-based hospitals supported by Bodhi medical cloud to be the industrial standard”.

Bodhi Health Group created Bodhi Medical Cloud, the first medical cloud in China, together with IBM, Oracle and IPPBX

The reform of the supply-side of pharmaceutical industry promotes the development of internet+ drug distribution

Recently, the office of State Council issued a file titled “Opinions on Further Reforming the Policies Used for Drug Production and Circulation”, which covers the reforming measures for drug production, circulation and application.

Mr. Fu Gang believes that the supply-side structural reform of drug circulation is imperative. The group is transitioning from a product-type enterprise to a platform-type one. First, we help DTP pharmacies finish integrated solutions and apply professional medical cloud platform to improve their operating efficiency. With the vigorous implementation of Hospital and Pharmacies Separation policy, there will definitely be large amount of prescriptions flowing from hospitals to market, under that background, we have established stable cooperation with tens of thousands of DTP pharmacies; on the other hand, there is an obvious tendency for pharmacies to play the role of clinics. MinuteClinic has become a trend in the world. We help pharmacies become the service center for health management and chronic disease management for nearby residents. It owns a cold chain delivery system consistent with GSP standard and covering the whole country. This delivery system can realize flexible supply chain management---delivery-to-order. Therefore, signing pharmacy stores realize the function of DTP pharmacies on the precondition of zero inventory. Right now, the circulation links are uniting the similar terms. This warehouse acts like a factory shared by tens of thousands of pharmacies and it reduces the cost and expands the scale through e-commerce method.