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GRACE YU GRACE YU THE DORENFEST CHINA HEALTHCARE GROUP THE DORENFEST CHINA HEALTHCARE GROUP HIMSS 2007 HIMSS 2007 OVERVIEW OF CHINESE HEALTHCARE SYSTEM OVERVIEW OF CHINESE HEALTHCARE SYSTEM AND ITS USE OF I.T. AND ITS USE OF I.T. NEW ORLEANS, USA FEBRUARY 26, 2007

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HIMSS 2007. FEBRUARY 26, 2007. NEW ORLEANS, USA. OVERVIEW OF CHINESE HEALTHCARE SYSTEM AND ITS USE OF I.T. AGENDA. BRIEF SUMMARY OF THE DORENFEST CHINA HEALTHCARE GROUP OVERVIEW OF CHINESE HEALTHCARE SYSTEM OVERVIEW OF H.I.T. STATUS IN CHINA DISCUSSION. - PowerPoint PPT Presentation

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Page 1: HIMSS 2007

GRACE YUGRACE YU THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HIMSS 2007HIMSS 2007

OVERVIEW OF CHINESE HEALTHCARE OVERVIEW OF CHINESE HEALTHCARE SYSTEM AND ITS USE OF I.T.SYSTEM AND ITS USE OF I.T.

NEW ORLEANS, USA FEBRUARY 26, 2007

Page 2: HIMSS 2007

GRACE YUGRACE YU 2 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

AGENDAAGENDA

BRIEF SUMMARY OF THE DORENFEST CHINA HEALTHCARE GROUPBRIEF SUMMARY OF THE DORENFEST CHINA HEALTHCARE GROUP

OVERVIEW OF CHINESE HEALTHCARE SYSTEMOVERVIEW OF CHINESE HEALTHCARE SYSTEM

OVERVIEW OF H.I.T. STATUS IN CHINA OVERVIEW OF H.I.T. STATUS IN CHINA

DISCUSSIONDISCUSSION

Page 3: HIMSS 2007

GRACE YUGRACE YU 3 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

BRIEF SUMMARY OF THE DORENFEST CHINA HEALTHCARE GROUP AND BRIEF SUMMARY OF THE DORENFEST CHINA HEALTHCARE GROUP AND GRACEGRACE

THE DORENFEST GROUP IS A WORLDWIDE HEALTHCARE INVESTMENT AND THE DORENFEST GROUP IS A WORLDWIDE HEALTHCARE INVESTMENT AND CONSULTING FIRM. THE DORENFEST CHINA HEALTHCARE GROUP, A DIVISION CONSULTING FIRM. THE DORENFEST CHINA HEALTHCARE GROUP, A DIVISION OF THE DORENFEST GROUP, IS A HEALTHCARE CONSULTING AND OF THE DORENFEST GROUP, IS A HEALTHCARE CONSULTING AND INVESTMENT COMPANY BASED IN SHANGHAI. INVESTMENT COMPANY BASED IN SHANGHAI.

PROVIDE SERVICES IN THE FOLLOWING AREAS:PROVIDE SERVICES IN THE FOLLOWING AREAS:

– HOSPITAL CONSULTINGHOSPITAL CONSULTING

– CONSULTING FOR COMPANIES SERVING THE HEALTHCARE INDUSTRYCONSULTING FOR COMPANIES SERVING THE HEALTHCARE INDUSTRY

– HOSPITAL CONTRACT MANAGEMENTHOSPITAL CONTRACT MANAGEMENT

– HOSPITAL OWNERSHIP AND IMPROVEMENTHOSPITAL OWNERSHIP AND IMPROVEMENT

GRACE IS THE DIRECTOR OF HOSPITAL CONSULTING AND SERVICES FOR THE GRACE IS THE DIRECTOR OF HOSPITAL CONSULTING AND SERVICES FOR THE DORENFEST CHINA HEALTHCARE GROUP. SHE GRADUATED FROM FUDAN DORENFEST CHINA HEALTHCARE GROUP. SHE GRADUATED FROM FUDAN UNIVERSITY IN SHANGHAI AND IS A PHD CANDIDATE AT THE UNIVERSITY OF UNIVERSITY IN SHANGHAI AND IS A PHD CANDIDATE AT THE UNIVERSITY OF CHICAGO. CHICAGO.

Page 4: HIMSS 2007

GRACE YUGRACE YU 4 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

DORENFEST INVESTIGATION OF HEALTHCARE IN CHINADORENFEST INVESTIGATION OF HEALTHCARE IN CHINA

1.1. VISITED 17 CITIES IN CHINAVISITED 17 CITIES IN CHINA

2.2. VISITED WITH HUNDREDS OF LEADERS IN THE HEALTHCARE INDUSTRY IN CHINA TO LEARN VISITED WITH HUNDREDS OF LEADERS IN THE HEALTHCARE INDUSTRY IN CHINA TO LEARN ABOUT HEALTHCARE REFORM IN CHINA – ITS PROGRESS, ITS PROBLEMS, AND ITS NEXT ABOUT HEALTHCARE REFORM IN CHINA – ITS PROGRESS, ITS PROBLEMS, AND ITS NEXT STEPSSTEPS

3.3. VISITED WITH OVER 100 HOSPITALS TO GAIN AN UNDERSTANDING OF HOSPITAL VISITED WITH OVER 100 HOSPITALS TO GAIN AN UNDERSTANDING OF HOSPITAL OPERATIONS IN CHINA, THEIR CURRENT STATUS, AND OPPORTUNITIES FOR IMPROVEMENTSOPERATIONS IN CHINA, THEIR CURRENT STATUS, AND OPPORTUNITIES FOR IMPROVEMENTS

4.4. VISITED WITH SEVERAL PROVINCIAL AND CITY HEALTH BUREAUS TO LEARN WHAT THEIR VISITED WITH SEVERAL PROVINCIAL AND CITY HEALTH BUREAUS TO LEARN WHAT THEIR GOALS ARE FOR THEIR PROVINCIAL AND CITY HOSPITALSGOALS ARE FOR THEIR PROVINCIAL AND CITY HOSPITALS

5.5. VISITED SOME PRIVATE HOSPITALS TO OBSERVE THE RESULTS OF HEALTHCARE REFORM VISITED SOME PRIVATE HOSPITALS TO OBSERVE THE RESULTS OF HEALTHCARE REFORM PRIVATIZATION EFFORTS IN CHINAPRIVATIZATION EFFORTS IN CHINA

6.6. VISITED WITH COMPANIES SELLING PRODUCTS AND SERVICES TO THE HEALTHCARE VISITED WITH COMPANIES SELLING PRODUCTS AND SERVICES TO THE HEALTHCARE INDUSTRY IN CHINA AND WHAT THEY BELIEVE ARE APPROPRIATE NEXT STEPS FOR INDUSTRY IN CHINA AND WHAT THEY BELIEVE ARE APPROPRIATE NEXT STEPS FOR REFORMING THE CHINESE HEALTHCARE SYSTEMREFORMING THE CHINESE HEALTHCARE SYSTEM

7.7. EVALUATED A GROUP OF HOSPITAL MANAGEMENT AND OWNERSHIP OPPORTUNITIES THAT EVALUATED A GROUP OF HOSPITAL MANAGEMENT AND OWNERSHIP OPPORTUNITIES THAT WERE PRESENTED TO THE DORENFEST GROUP TO BECOME MORE FAMILIAR WITH THE WERE PRESENTED TO THE DORENFEST GROUP TO BECOME MORE FAMILIAR WITH THE ALTERNATIVE WAYS TO PROCEED IN BUILDING A “MODEL HOSPITAL” IN CHINAALTERNATIVE WAYS TO PROCEED IN BUILDING A “MODEL HOSPITAL” IN CHINA

8.8. DEVELOPED A STRATEGY FOR BRINGING DORENFEST SKILL AND EXPERIENCE TO CHINADEVELOPED A STRATEGY FOR BRINGING DORENFEST SKILL AND EXPERIENCE TO CHINA

Page 5: HIMSS 2007

GRACE YUGRACE YU 5 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

THE DORENFEST GROUP VISION FOR CREATING A MODEL HOSPITAL IN CHINATHE DORENFEST GROUP VISION FOR CREATING A MODEL HOSPITAL IN CHINA

PROVIDES IMPROVED QUALITY OF CARE TO ITS PATIENTSPROVIDES IMPROVED QUALITY OF CARE TO ITS PATIENTS

OPERATES AT A HIGHLY EFFICIENT LEVEL THROUGH EFFECTIVE USE OF OPERATES AT A HIGHLY EFFICIENT LEVEL THROUGH EFFECTIVE USE OF MANAGEMENT SYSTEMS AND BETTER WORK PROCESSESMANAGEMENT SYSTEMS AND BETTER WORK PROCESSES

OFFERS ITS SERVICES TO PATIENTS AT AN AFFORDABLE COSTOFFERS ITS SERVICES TO PATIENTS AT AN AFFORDABLE COST

CREATES A HIGHLY SATISFIED PATIENT POPULATION WITH THE PATIENTS CREATES A HIGHLY SATISFIED PATIENT POPULATION WITH THE PATIENTS OBSERVING A NOTICEABLE IMPROVEMENT IN THE SERVICES AND OBSERVING A NOTICEABLE IMPROVEMENT IN THE SERVICES AND TREATMENTS PROVIDED BY THE HOSPITALTREATMENTS PROVIDED BY THE HOSPITAL

UTILIZES APPROPRIATE DIGITAL TECHNOLOGY TO CREATE A STATE OF THE UTILIZES APPROPRIATE DIGITAL TECHNOLOGY TO CREATE A STATE OF THE ART “DIGITAL HOSPITAL”ART “DIGITAL HOSPITAL”

Page 6: HIMSS 2007

GRACE YUGRACE YU 6 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

THE DORENFEST GROUP CHINA BUSINESS OPERATIONSTHE DORENFEST GROUP CHINA BUSINESS OPERATIONS

RECENTLY COMPLETED PHASE I PROJECT TO HELP SHENZHEN HEALTH BUREAU RECENTLY COMPLETED PHASE I PROJECT TO HELP SHENZHEN HEALTH BUREAU PLAN ITS REGIONAL HEALTH NETWORK AND DIGITAL HOSPITAL PROJECTSPLAN ITS REGIONAL HEALTH NETWORK AND DIGITAL HOSPITAL PROJECTS

RECENTLY TAUGHT A COURSE FOR HOSPITAL PRESIDENTS AT CEIBS (CHINA RECENTLY TAUGHT A COURSE FOR HOSPITAL PRESIDENTS AT CEIBS (CHINA EUROPEAN INTERNATIONAL BUSINESS SCHOOL) ON HOSPTIAL WORK EUROPEAN INTERNATIONAL BUSINESS SCHOOL) ON HOSPTIAL WORK PROCESSES MANAGEMENT AND I.T. MANAGEMENTPROCESSES MANAGEMENT AND I.T. MANAGEMENT

CURRENT ACTIVITIES INCLUDE: CURRENT ACTIVITIES INCLUDE:

– BUILDING A MANAGEMENT TEAMBUILDING A MANAGEMENT TEAM

– CREATING OTHER PROJECT ACTIVITIESCREATING OTHER PROJECT ACTIVITIES

– REVIEWING CANDIDATES TO IMPLEMENT MODEL HOSPITAL VISIONREVIEWING CANDIDATES TO IMPLEMENT MODEL HOSPITAL VISION

– DEVELOPING PARTNERING RELATIONSHIPS TO DELIVER SERVICESDEVELOPING PARTNERING RELATIONSHIPS TO DELIVER SERVICES

– REVIEWING SOFTWARE SYSTEMS IN CHINA AND OTHER COUNTRIES TO REVIEWING SOFTWARE SYSTEMS IN CHINA AND OTHER COUNTRIES TO DEFINE THE BEST SOFTWARE AVAILABLE TO PARTNER ON I.T. PROJECTS DEFINE THE BEST SOFTWARE AVAILABLE TO PARTNER ON I.T. PROJECTS FOR CHINA HOSPITAL CLIENTSFOR CHINA HOSPITAL CLIENTS

Page 7: HIMSS 2007

GRACE YUGRACE YU 7 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HIMSS 2007HIMSS 2007

OVERVIEW OF CHINESE HEALTHCARE SYSTEMOVERVIEW OF CHINESE HEALTHCARE SYSTEM

Page 8: HIMSS 2007

GRACE YUGRACE YU 8 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HEALTHCARE COST AS A PERCENT OF GDP ($ AND RMB IN BILLIONS)HEALTHCARE COST AS A PERCENT OF GDP ($ AND RMB IN BILLIONS)

0

1000

2000

3000

4000

5000

6000

7000

8000

1980 1990 1995 2000 2002 2003 2004

$1.8(14 RMB)$1.8(14 RMB)

$9.6(74RMB)$9.6(74RMB)

$74.7(579RMB)$74.7(579RMB)

$84.9 (658RMB)$84.9 (658RMB)

$97.0 (759RMB) $97.0 (759RMB)

3.17%3.17%

4.03%4.03%

3.69%3.69%

5.13%5.13%

5.51%5.51%

5.62%5.62%

5.55%5.55%

GovernmentGovernment

Social InsuranceSocial Insurance

Out-of-pocketOut-of-pocket

$27.8(215RMB)$27.8(215RMB)

$59.1(458 RMB)$59.1(458 RMB)

Page 9: HIMSS 2007

GRACE YUGRACE YU 9 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HEALTHCARE COST AS A PERCENT OF GDP ($ AND RMB IN BILLIONS)HEALTHCARE COST AS A PERCENT OF GDP ($ AND RMB IN BILLIONS)

0

5000

10000

15000

20000

25000

30000

1980 1990 1995 2000 2002 2003 2004 2006 2010 2010

$1.8$1.8

(14RMB)(14RMB)

3.17%3.17% $9.6$9.6

(74 RMB)(74 RMB)

4.03%4.03%

$74.7$74.7

(579 RMB)(579 RMB)

5.51%5.51% $84.9 $84.9

(658 RMB)(658 RMB)

5.62%5.62% $97.0 $97.0

(759 RMB) (759 RMB)

5.55%5.55%

GovernmentGovernment

Social InsuranceSocial Insurance

Out-of-pocketOut-of-pocket

3.69%3.69%$27.8$27.8

(215RMB)(215RMB)

5.13%5.13%$59.1$59.1

(458 RMB)(458 RMB)

ForecastForecast Forecast atForecast at

7% of GDP7% of GDP

$154.1 $154.1

(1193 RMB) (1193 RMB)

5.7%5.7%

$276.9 $276.9

(2146 RMB) (2146 RMB)

7.00%7.00%

$356.0 $356.0

(2759RMB) (2759RMB)

9.00%9.00%

Forecast atForecast at

9% of GDP9% of GDP

Page 10: HIMSS 2007

GRACE YUGRACE YU 10 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

MAJOR CHARACTERISTICS OF THE CHINESE HEALTHCARE SYSTEMMAJOR CHARACTERISTICS OF THE CHINESE HEALTHCARE SYSTEM

THE CHINESE HEALTHCARE SYSTEM IS A LOW COST SYSTEM AND IS A THE CHINESE HEALTHCARE SYSTEM IS A LOW COST SYSTEM AND IS A EFFICIENT SYSTEM. EFFICIENT SYSTEM.

PATIENTS PAY A LARGE PERCENTAGE OF THE HEALTHCARE BILL THAN ANY PATIENTS PAY A LARGE PERCENTAGE OF THE HEALTHCARE BILL THAN ANY OTHER COUNTRIES. OTHER COUNTRIES.

CHINA HEALTHCARE SYSTEM HAS THE LOWEST GOVERNMENT SPENDING CHINA HEALTHCARE SYSTEM HAS THE LOWEST GOVERNMENT SPENDING THAN ANY OTHER COUNTRIES. THAN ANY OTHER COUNTRIES.

PAYMENTS ARE MADE BEFORE SERVICE IS DELIVERED. PAYMENTS ARE MADE BEFORE SERVICE IS DELIVERED.

PRICE FOR MEDICAL SERVICES FROM DOCTORS AND NURSES ARE VERY PRICE FOR MEDICAL SERVICES FROM DOCTORS AND NURSES ARE VERY LOW. LOW.

HIGH DRUG COST AND DIAGNOSTIC TESTS ARE MAJOR CONTRIBUTORS TO HIGH DRUG COST AND DIAGNOSTIC TESTS ARE MAJOR CONTRIBUTORS TO THE INCREASING HEALTHCARE EXPENSESTHE INCREASING HEALTHCARE EXPENSES

LESS THAN 30% OF THE POPULATION HAS HEALTH INSURANCE.LESS THAN 30% OF THE POPULATION HAS HEALTH INSURANCE.

CHINESE HOSPITALS HAVE PATIENT SERVICE AND QUALITY PROBLEMSCHINESE HOSPITALS HAVE PATIENT SERVICE AND QUALITY PROBLEMS

Page 11: HIMSS 2007

GRACE YUGRACE YU 11 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

AVERAGE MEDICAL EXPENSE PER OUTPATIENT IN HOSPITALS ($)AVERAGE MEDICAL EXPENSE PER OUTPATIENT IN HOSPITALS ($)

0

50

100

150

1995 2000 2004 2005

$5 (39RMB)$5 (39RMB)

$11(85RMB)$11(85RMB)

$15 (118RMB)$15 (118RMB)

$16 (126RMB)$16 (126RMB)Medical ServicesMedical Services

Exam/TestExam/Test

DrugDrug

Page 12: HIMSS 2007

GRACE YUGRACE YU 12 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

AVERAGE MEDICAL EXPENSE PER INPATIENT IN HOSPITALS ($)AVERAGE MEDICAL EXPENSE PER INPATIENT IN HOSPITALS ($)

0

1000

2000

3000

4000

5000

1995 2000 2004 2005

$215(1667RMB)$215(1667RMB)

$397(3083RMB)$397(3083RMB)

$552(4284RMB)$552(4284RMB)

$601 (4661RMB)$601 (4661RMB)

Medical ServicesMedical Services

Exam/TestExam/Test

DrugDrug

Page 13: HIMSS 2007

GRACE YUGRACE YU 13 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HIGH DRUG COST AND DIAGNOSTIC TESTS ARE MAJOR CONTRIBUTORS TO HIGH DRUG COST AND DIAGNOSTIC TESTS ARE MAJOR CONTRIBUTORS TO THE INCREASING HEALTHCARE EXPENSESTHE INCREASING HEALTHCARE EXPENSES

REVENUE FROM THE SALE OF DRUGS CONSTITUTES 50% OF HOSPITAL’S REVENUE FROM THE SALE OF DRUGS CONSTITUTES 50% OF HOSPITAL’S REVENUE. REVENUE.

DURING THE 1980S AND 1990S, GOVERNMENT SUBSIDIES TO HOSPITALS FELL DURING THE 1980S AND 1990S, GOVERNMENT SUBSIDIES TO HOSPITALS FELL FROM 50% TO 10%.FROM 50% TO 10%.

HOSPITALS WERE MADE RESPONSIBLE FOR THEIR PROFITS AND LOSSES.HOSPITALS WERE MADE RESPONSIBLE FOR THEIR PROFITS AND LOSSES.

HOWEVER, THE GOVERNMENT CONTINUES TO SET FEES FOR MEDICAL HOWEVER, THE GOVERNMENT CONTINUES TO SET FEES FOR MEDICAL SERVICES, AND FEES FOR MEDICAL SERVICES OF DOCTORS AND NURSES SERVICES, AND FEES FOR MEDICAL SERVICES OF DOCTORS AND NURSES REMAIN WELL BELOW COST. FOR INSTANCE, A NORMAL PHYSICIAN REMAIN WELL BELOW COST. FOR INSTANCE, A NORMAL PHYSICIAN CONSULTATION FEE IS $1-2$ (7 RMB – 14 RMB). CONSULTATION FEE IS $1-2$ (7 RMB – 14 RMB).

GOVERNMENT ALLOWS HOSPITALS TO MARK UP THE PRICE OF GOVERNMENT ALLOWS HOSPITALS TO MARK UP THE PRICE OF PRESCRIPTION DRUGS BY ABOUT 15%. PROFIT OF DRUGS OFFSET THE LOSS PRESCRIPTION DRUGS BY ABOUT 15%. PROFIT OF DRUGS OFFSET THE LOSS OF SERVICES. IT ALSO MOTIVATES OVERPRESCRIBING DRUGS.OF SERVICES. IT ALSO MOTIVATES OVERPRESCRIBING DRUGS.

FEES FOR HIGH TECH DIAGNOSTIC TESTS ARE SET WELL ABOVE COST. FEES FOR HIGH TECH DIAGNOSTIC TESTS ARE SET WELL ABOVE COST.

THEREFORE, HOSPITALS RELY ON OVER-PRESCRIBING DRUGS AND THEREFORE, HOSPITALS RELY ON OVER-PRESCRIBING DRUGS AND DIAGNOSTIC TESTS FOR MAKING PROFIT. DIAGNOSTIC TESTS FOR MAKING PROFIT.

Page 14: HIMSS 2007

GRACE YUGRACE YU 14 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HEALTH INSURANCEHEALTH INSURANCE

LESS THAN 30% OF THE POPULATION HAS HEALTH INSURANCE. MORE THAN 1 LESS THAN 30% OF THE POPULATION HAS HEALTH INSURANCE. MORE THAN 1 BILLION PEOPLE ARE NOT INSURED -- 40% OF URBAN AND 87% OF RURAL BILLION PEOPLE ARE NOT INSURED -- 40% OF URBAN AND 87% OF RURAL INDIVIDUALS. INDIVIDUALS.

NATIONAL SOCIAL INSURANCE PROGRAM FOR URBAN EMPLOYEES WAS NATIONAL SOCIAL INSURANCE PROGRAM FOR URBAN EMPLOYEES WAS ESTABLISHED IN 1998. BY 2005, IT COVERS 130 MILLION URBAN EMPLOYEES. ESTABLISHED IN 1998. BY 2005, IT COVERS 130 MILLION URBAN EMPLOYEES. IN ADDITION, 50 MILLION PEOPLE HAVE GOVERNMENT INSURANCE. IN ADDITION, 50 MILLION PEOPLE HAVE GOVERNMENT INSURANCE.

IN RURAL AREAS, ONLY SOME AFFLUENT VILLAGES CAN AFFORD TO IN RURAL AREAS, ONLY SOME AFFLUENT VILLAGES CAN AFFORD TO PARTICIPATE IN THE NEW COLLECTIVE HEALTH INSURANCE. IT NOW COVERS PARTICIPATE IN THE NEW COLLECTIVE HEALTH INSURANCE. IT NOW COVERS 170 MILLION RURAL RESIDENTS. BUT THE BENEFIT LEVEL IS VERY LOW. 170 MILLION RURAL RESIDENTS. BUT THE BENEFIT LEVEL IS VERY LOW.

PRIVATE HEALTH INSURANCE IS VERY LIMITED.PRIVATE HEALTH INSURANCE IS VERY LIMITED.

Page 15: HIMSS 2007

GRACE YUGRACE YU 15 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

CHALLENGES OF THE CHINESE HEALTHCARE SYSTEMCHALLENGES OF THE CHINESE HEALTHCARE SYSTEM

RISING COST OF HEALTHCARERISING COST OF HEALTHCARE

DIFFICULT ACCESS TO HEALTHCAREDIFFICULT ACCESS TO HEALTHCARE

LACK OF HEALTH INSURANCELACK OF HEALTH INSURANCE

CONSUMER DISSATISFACTIONCONSUMER DISSATISFACTION

DETERIORATING DOCTOR-PATIENT RELATIONSHIPDETERIORATING DOCTOR-PATIENT RELATIONSHIP

DOCTORS TAKE BRIBES OR “RED ENVELOPES” FROM DRUG COMPANIESDOCTORS TAKE BRIBES OR “RED ENVELOPES” FROM DRUG COMPANIES

OVER-PRESCRIBING OF DRUGS AND TESTSOVER-PRESCRIBING OF DRUGS AND TESTS

PUBLIC HOSPITALS HAVE STRONG TENDENCIES TO MAKE PROFIT FROM PUBLIC HOSPITALS HAVE STRONG TENDENCIES TO MAKE PROFIT FROM PATIENTSPATIENTS

LACK OF A PRIMARY CARE SYSTEMLACK OF A PRIMARY CARE SYSTEM

Page 16: HIMSS 2007

GRACE YUGRACE YU 16 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

A NEW DIRECTION OF HEALTHCARE REFORM STRATEGY WILL BE FINALIZED A NEW DIRECTION OF HEALTHCARE REFORM STRATEGY WILL BE FINALIZED IN 2007IN 2007

COMMUNITY HEALTH SERVICESCOMMUNITY HEALTH SERVICES

RURAL COOPERATIVE HEALTHCARE WITH BASIC HEALTH SERVICES FOR ALL RURAL COOPERATIVE HEALTHCARE WITH BASIC HEALTH SERVICES FOR ALL RURAL POPULATIONRURAL POPULATION

CONTINUE TO IMPROVE PUBLIC HOSPITAL MANAGEMENT CONTINUE TO IMPROVE PUBLIC HOSPITAL MANAGEMENT

BUILD INTEGRATED HEALTHCARE DELIVERY SYSTEMBUILD INTEGRATED HEALTHCARE DELIVERY SYSTEM

HEALTH INSURANCE PRODUCTSHEALTH INSURANCE PRODUCTS

REFORM THE PHARMACEUTICAL INDUSTRYREFORM THE PHARMACEUTICAL INDUSTRY

Page 17: HIMSS 2007

GRACE YUGRACE YU 17 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

HIMSS 2007HIMSS 2007

OVERVIEW OF OVERVIEW OF H.I.T. STATUS IN CHINAH.I.T. STATUS IN CHINA

Page 18: HIMSS 2007

GRACE YUGRACE YU 18 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

CURRENT STATUS OF THE USE OF I.T. IN HEALTHCARECURRENT STATUS OF THE USE OF I.T. IN HEALTHCARE

CHINA HEALTHCARE AND I.T. USE HAS SIMILARITIES TO THE U.S. IN THE 1970SCHINA HEALTHCARE AND I.T. USE HAS SIMILARITIES TO THE U.S. IN THE 1970S

CHINA CURRENTLY SPEND A LITTLE OVER 0.5% OF ITS NATIONAL HEALTH CHINA CURRENTLY SPEND A LITTLE OVER 0.5% OF ITS NATIONAL HEALTH EXPENSES ON H.I.T. ($700 MILLION).EXPENSES ON H.I.T. ($700 MILLION).

70% OF H.I.T. SPENDING IS FOR HARDWARE, 20% FOR SOFTWARE, AND 10% 70% OF H.I.T. SPENDING IS FOR HARDWARE, 20% FOR SOFTWARE, AND 10% FOR SERVICES. FOR SERVICES.

MOST HOSPITALS IN CHINA USE I.T. SOFTWARE FOR FINANCIAL SYSTEMSMOST HOSPITALS IN CHINA USE I.T. SOFTWARE FOR FINANCIAL SYSTEMS

I.T. USE IN CLINICAL SYSTEMS HAS EMERGED ON A DEPARTMENTAL BASISI.T. USE IN CLINICAL SYSTEMS HAS EMERGED ON A DEPARTMENTAL BASIS

CHINA HOSPITAL WORK PROCESSES ARE REDUNDANT AND ERROR PRONE CHINA HOSPITAL WORK PROCESSES ARE REDUNDANT AND ERROR PRONE WITH GREAT OPPORTUNITIES FOR IMPROVEMENT THROUGH APPROPRIATE WITH GREAT OPPORTUNITIES FOR IMPROVEMENT THROUGH APPROPRIATE USE OF I.T.USE OF I.T.

POOR INTEGRATION OF DIVERSE SOFTWARE SYSTEMS CREATES PROBLEMS POOR INTEGRATION OF DIVERSE SOFTWARE SYSTEMS CREATES PROBLEMS AS I.T. USE EXPANDS AS I.T. USE EXPANDS

Page 19: HIMSS 2007

GRACE YUGRACE YU 19 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

CHINESE HOSPITALS TAKE A BIG LEAP FORWARD IN DIGITIZING ITS CHINESE HOSPITALS TAKE A BIG LEAP FORWARD IN DIGITIZING ITS HOSPITALS. HOSPITALS.

THE MINISTRY OF HEALTH’S GUIDELINES FOR HEALTH I.T. DEVELOPMENT THE MINISTRY OF HEALTH’S GUIDELINES FOR HEALTH I.T. DEVELOPMENT (2003-2010) CALLS FOR ELECTRONIC MEDICAL RECORDS AND REGIONAL (2003-2010) CALLS FOR ELECTRONIC MEDICAL RECORDS AND REGIONAL HEALTH NETWORKS TO BE IMPLEMENTED PROVIDING MUCH MOMENTUM FOR HEALTH NETWORKS TO BE IMPLEMENTED PROVIDING MUCH MOMENTUM FOR HOSPITALS AND HEALTH BUREAUS TO INVEST MORE IN I.T. NOWHOSPITALS AND HEALTH BUREAUS TO INVEST MORE IN I.T. NOW

WHEN WE FIRSTED STARTED OUR WORK IN CHINA, VERY FEW HOSPITALS WHEN WE FIRSTED STARTED OUR WORK IN CHINA, VERY FEW HOSPITALS CONSIDER OF UPGRADING THEIR I.T. SYSTEM. NOW MANY HOSPITALS ARE CONSIDER OF UPGRADING THEIR I.T. SYSTEM. NOW MANY HOSPITALS ARE CONSIDERING MAJOR UPGRADES OF I.T. SYSTEMSCONSIDERING MAJOR UPGRADES OF I.T. SYSTEMS

BIG BUDGETS ARE STARTING TO BECOME AVAILABLE TO MOVE TOWARD BIG BUDGETS ARE STARTING TO BECOME AVAILABLE TO MOVE TOWARD DIGITAL HOSPITALS WITH ELECTRONIC MEDICAL RECORDS, PACS AND OTHER DIGITAL HOSPITALS WITH ELECTRONIC MEDICAL RECORDS, PACS AND OTHER SYSTEMSSYSTEMS

BUT WEAK APPLICATION SOFTWARE AND IMPLEMENTATION SKILLS ARE BUT WEAK APPLICATION SOFTWARE AND IMPLEMENTATION SKILLS ARE DELAYING PROGRESSDELAYING PROGRESS

Page 20: HIMSS 2007

GRACE YUGRACE YU 20 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

CHINESE SOFTWARE IS IN ITS INFANCY CHINESE SOFTWARE IS IN ITS INFANCY

THE HARDWARE AND NETWORKING CAPABILITY AVAILABLE TO HOSPITALS IN 2005 THE HARDWARE AND NETWORKING CAPABILITY AVAILABLE TO HOSPITALS IN 2005 IS MUCH BETTER THAN IT WAS IN 1970S IN THE U.S. BUT SOFTWARE AVAILABLE IS MUCH BETTER THAN IT WAS IN 1970S IN THE U.S. BUT SOFTWARE AVAILABLE FOR CHINESE HOSPITALS TO AUTOMATE CLINICAL PROCESSES IS IN ITS INFANCYFOR CHINESE HOSPITALS TO AUTOMATE CLINICAL PROCESSES IS IN ITS INFANCY

SOFTWARE VENDORS ARE NOT AS EXPERIENCED IN HEALTHCARE SOFTWARE AS SOFTWARE VENDORS ARE NOT AS EXPERIENCED IN HEALTHCARE SOFTWARE AS VENDORS IN THE REST OF THE WORLD. PROVEN PRODUCTS FOR EHR DO NOT YET VENDORS IN THE REST OF THE WORLD. PROVEN PRODUCTS FOR EHR DO NOT YET EXIST. EXIST.

SOME HOSPITALS HAVE ACCOMPLISHED MORE ADVANCED SYSTEMS WITH MUCH SOME HOSPITALS HAVE ACCOMPLISHED MORE ADVANCED SYSTEMS WITH MUCH CLINICAL FUNCTION AUTOMATED USUALLY THROUGH USE OF SELF-DEVELOPED CLINICAL FUNCTION AUTOMATED USUALLY THROUGH USE OF SELF-DEVELOPED SOFTWARESOFTWARE

THERE IS A STRONG NEED FOR GOOD HOSPITAL SOFTWARE IN CHINA. THERE IS A STRONG NEED FOR GOOD HOSPITAL SOFTWARE IN CHINA.

CHINA WILL BE A LARGE MARKET FOR SOFTWARE IN HEALTHCARE. CHINA WILL BE A LARGE MARKET FOR SOFTWARE IN HEALTHCARE.

THERE IS ALSO CONCERN AMONG HOSPITAL PRESIDENTS IN CHINA ABOUT THE THERE IS ALSO CONCERN AMONG HOSPITAL PRESIDENTS IN CHINA ABOUT THE IMPLEMENTATION SKILL AND EXPERIENCE AVAILABLE IN CHINA TO TAKE THIS BIG IMPLEMENTATION SKILL AND EXPERIENCE AVAILABLE IN CHINA TO TAKE THIS BIG LEAP FORWARD THAT IS NOW UNDERWAY LEAP FORWARD THAT IS NOW UNDERWAY

Page 21: HIMSS 2007

GRACE YUGRACE YU 21 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

OPPORTUNITIES FOR H.I.T. DEVELOPMENT IN CHINAOPPORTUNITIES FOR H.I.T. DEVELOPMENT IN CHINA

MORE USE OF I.T. IN CLINICAL SERVICESMORE USE OF I.T. IN CLINICAL SERVICES

MORE USE OF I.T. IN HOSPITAL MANAGEMENTMORE USE OF I.T. IN HOSPITAL MANAGEMENT

DIGITAL HOSPITALS WITH ELECTRONIC HEALTH RECORDSDIGITAL HOSPITALS WITH ELECTRONIC HEALTH RECORDS

REGIONAL HEALTH NETWORKSREGIONAL HEALTH NETWORKS

SYSTEM INTEGRATIONSYSTEM INTEGRATION

MORE USE OF CONSULTANTS IN I.T. PLANNING AND IMPLEMENTATION MORE USE OF CONSULTANTS IN I.T. PLANNING AND IMPLEMENTATION

MORE STANDARDS TO SUPPORT I.T. PROGRESSMORE STANDARDS TO SUPPORT I.T. PROGRESS

Page 22: HIMSS 2007

GRACE YUGRACE YU 22 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP

THANK YOU.THANK YOU.FOR MORE INFORMATION CONTACT:FOR MORE INFORMATION CONTACT:

GRACE YUGRACE YU

THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUPJINGHAI ROAD NO. 3288, BUILDING 4, SUITE 3302JINGHAI ROAD NO. 3288, BUILDING 4, SUITE 3302

PUDONG, SHANGHAIPUDONG, SHANGHAI

PHONE: 021-62791336PHONE: 021-62791336

WEB SITE ADDRESS: WEB SITE ADDRESS: www.dorenfest.comwww.dorenfest.com

E-MAIL ADDRESS: [email protected] ADDRESS: [email protected]