Page 352 - 2020 White Paper on the Business Environment in China
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birth rate are fueling demand for medical services, as the issue of overworked doctors. In order for
citing there are currently 240 million people over the technology to be effective, startups and tech
60 years of age in China, and the number will companies need to understand the bottlenecks
grow to 480 million by 2050, while the reforms that businesses encounter. AI could address issues
related with the medical service system also beyond efficiency. In some cases, algorithms have
aims to provide patients with increased access been able to outperform some physicians when
to the services they need at lower cost, as well diagnosing certain diseases. In 2019, researchers
as to prevent over-medication and unnecessary from China and the US trained an AI using
treatments. Big data and other digital technologies electronic records from 1.3 million patient visits
that can provide increased insights and increased to a hospital in the southern Chinese province of
levels of transparency in medical services will Guangdong. It was able to meet the number of
boost digital medicine market, and will completely correct diagnoses and even beat those of junior
transform the connection between doctors physicians for ailments ranging from asthma to
and patients while making remote diagnoses, sinusitis (Udemans).
intelligent diagnoses, and intelligent treatments
possible, the report said (Liu, Advancement). Full government backing has been imperative for
this progress. China’s aim is to be the world leader
According to the National Health Commission, in healthcare AI innovation, and the equivalent
smart hospitals refer to hospitals that use of billions of US dollars has been invested by the
information technology to provide smart services government into promising startups and research
such as appointments, medical services, waiting and development. The seeds of this combined
reminders and hospital navigation to the patients. collaboration of State and startup have begun to
The Central Hospital of Wuhan announced in 2019 grow roots. In 2017, Guangzhou opened China’s
that it has built the first smart hospital nationwide. first cataract clinic with heavy AI applications. More
According to the hospital, the average time for the than half of people worldwide over the age of 75
whole process for patients to see a doctor in the will have some form of vision loss due to cataracts.
hospital has been reduced from three hours to The AI tool in question enables time to be saved
one and a half hours since it launched its smart by directing patients toward different specialists
services. And in the outpatient hall of Beijing for their condition, something that is only possible
Tiantan Hospital, all the outpatient services, from with computers that can make sense of the heavy
purchasing medical records booklets, making data sets. Digital health technology is increasingly
appointments to printing inspection reports part of everyday healthcare for professionals as well
and receiving medicines, are now self-service. as patients in China. China has leapfrogged other
In the hospital’s wards, patients can also book countries in adoption of digital health technology,
an appointment for a medical examination and based on a survey of more than 15,000 individuals
evaluate doctors and nurses from their bed. And and over 3,100 healthcare professionals in 15
the smart hospital beds offer real-time monitoring countries, including the United States, the United
of the patients’ vital signs using the technology of Kingdom, Australia and France. Ninety-four percent
the internet of things (CD, Smart Hospital). of Chinese health professionals reported using
digital health technology or mobile health apps.
Artificial intelligence (AI) can also ease the Zhao Heng, the founder of consulting company
strain on China’s overburdened healthcare Latitude Health, said protection of patients’ privacy
industry while increasing access to higher quality in the use of digital health services remains an urgent
health services. Just 8 percent of China’s hospitals issue in China, since the country has no specific law
have received a triple-A grade, a classification that to regulate the acquisition and commercial use of
is reserved the specialized healthcare facilities. patients’ digital information. In addition, he said, few
These hospitals service 50 percent of all patients online health companies in China have established
in the country. The majority of China’s premier profitable business models, which will hinder the
hospitals are found in large cities, creating an further development of digital healthcare in China
unequal distribution of health services. AI could - despite the wide application of digital technology
help to alleviate some of these problems, as well and the convenience it brings (Liu, Digital Health).

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