The Cyberspace Administration of China (CAC) has released the Digital China Development Report (2022), providing key insights into the extent of China’s digital health ecosystem. The report highlights significant growth in the digital healthcare field, with a focus on the expansion of internet hospitals and remote medical services.
Growth in Digital Healthcare Services
According to preliminary statistics cited in the report, as of October 2022, over 2,700 internet hospitals have been established nationwide, providing internet diagnosis and treatment services for more than 25.9 million people. The number of internet medical users reached 360 million in 2022, marking a growth rate of 21.7%. Remote medical service platforms have achieved full coverage across 31 provinces and the Xinjiang Production and Construction Corps, with over 26.7 million remote medical services provided during the year. The national medical insurance service platform boasts 280 million real-name users, covering over 100 service functions.
Digital Technology Applications and Utilization Rates
The report also notes the rapid spread of new digital technology applications in auxiliary diagnosis, rehabilitation, distribution and transportation, medical robots, and other fields. In 2022, the awareness and utilization rate of digital medical services in China accelerated. An online questionnaire survey of netizens aged 18 to 70 in 31 provinces collected over 180,000 valid samples, showing that the urban-rural gap in awareness of remote medical services was minimal at 0.4%, with rural residents having a slightly higher utilization rate than urban residents by 0.6 percentage points. Regions such as Zhejiang, Shanghai, Guangdong, and Hunan had the highest awareness and utilization rates of digital medical services in the country.
Regulatory Developments and Industry Growth
The year 2022 saw the implementation of the “Detailed Rules for the Supervision of Internet Diagnosis and Treatment (Trial)” and the “Measures for the Supervision and Management of Drug Online Sales,” signaling a new stage of standardized and high-quality development for the internet medical industry. Financial reports indicate that major listed internet medical and pharmaceutical e-commerce enterprises have achieved rapid development. Alibaba Health’s revenue from healthcare and digital services business was RMB934 million, up 45.7% year-on-year (YOY); JD Healthcare’s revenue from its online platform, digital marketing, and other services was RMB6.4 billion. Pharmaceutical and health product sales contributed the main revenue for both companies, with Alibaba Health’s self-operated business revenue accounting for approximately 88.15% of its total revenue, and JD Healthcare’s sales revenue from drugs and health products accounting for approximately 86.5% of its total revenue.-Fineline Info & Tech
