Smart information systems in hospitals and clinical decision support systems (CDSS)
Smart information systems in hospitals and clinical decision support systems (CDSS)
Business Model Description
Smart information systems includes Hospital Information System (HIS), Clinical Information System (CIS), Laboratory Information System (LIS), Electronic Medical Record (EMR), Picture Archiving and Communication Systems (PACS), Radiology Information System (RIS), etc.
Clinical Decision Support System (CDSS) integrates big data and AI technologies to assist doctors in diagnosing processes.
The usual business model for companies in this sector is project-based bidding to construct information systems in hospitals. The companies charge construction fees and maintenance fees on their projects. In addition, commercial medical insurance companies and pharmaceutical companies can benefit from the patient data collected through hospital information systems.
Expected Impact
Provide patients with more efficient and accurate diagnoises, improve the efficiency and capacity of healthcare systems
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- China: Anhui
- China: Jiangxi
- China: Fujian
- China: Yunnan
- China: Guangdong
- China: Beijing
- China: Shanghai
- China: Shenzhen
- China: Wuhan
- China: Chengdu
Sector Classification
Health Care
Development need
China’s health sector currently still faces many challenges, including weak capacity of grass-roots service providers, imbalanced development and resources distribution between rural and urban areas in health sector and accelerated aging trend.
The Action Plan for Promoting the Quality of Health Industry Development (2019-2022) focused on leveraging digital technology in the health care sector. On the back of COVID-19, the National Health Commission published a notice requiring the Health Commissions in all provinces to build Internet-based platforms for controlling and preventing COVID-19 as well as general healthcare
Gender inequalities and marginalization issues
(1) Medical Financial Assistance (MFA) scheme in China did not offer adequate financial protection for marginalized people. (2) Women may be at risk or at greater risk of infection due to occupational gender segregation.
Investment opportunities introduction
The tageted subregions have low economic input in the healthcare sector, yet policy focus in this area is relatively strong. This indicates that the demand for better healthcare services and the need for further investment is high.
Key bottlenecks introduction
The shortage of medical talents in quantity and poor quality structure is the bottleneck that restricts the development of China's healthcare industry.
Health Care Providers
Development need
the rapid aging trend challenges healthcare delivery; access to nursing homes remains limited; there are significant regional disparities in the distribution of health resources; around 75% of older people suffer from noncommunicable chronic diseases; the demand gap of radiologists is increasing; the cure rate of early detection of cancer is low
Policy priority
China has made significant policy efforts to improve healthcare delivery. A national action plan (2018) was issued by the National Health and Family Planning Commission, planing to make diagnosis and treatment more convenient; gradually form a new system of medical services based on regional coordination, information sharing and service integration,.
Investment opportunities introduction
the 6 IOAs with the highest growth potential were shortlisted:internet healthcare, smart information systems in hospitals, Independent Clinical Laboratories (ICL),Medical imaging based on Artificial Intelligence technology, Smart home-use medical devices for chronic disease management,Senior care.
Health Care Delivery
Pipeline Opportunity
Smart information systems in hospitals and clinical decision support systems (CDSS)
Smart information systems includes Hospital Information System (HIS), Clinical Information System (CIS), Laboratory Information System (LIS), Electronic Medical Record (EMR), Picture Archiving and Communication Systems (PACS), Radiology Information System (RIS), etc.
Clinical Decision Support System (CDSS) integrates big data and AI technologies to assist doctors in diagnosing processes.
The usual business model for companies in this sector is project-based bidding to construct information systems in hospitals. The companies charge construction fees and maintenance fees on their projects. In addition, commercial medical insurance companies and pharmaceutical companies can benefit from the patient data collected through hospital information systems.
Business Case
Market Size and Environment
> USD 1 billion
15% - 20%
In 2020, the size of the market reached USD 11 billion.
Source: Qianzhan Industry Research Institute
Indicative Return
10% - 15%
The industry experts estimated that the potential rate of return in smart hospital information systems would be about 10%.
A representative example is Neusoft, the top provider of IT solutions for hospitals over the last 10 years. In its healthcare and social security related operations, though the company has a gross profit margin of 39.89% in 2019.
Heren Health (300550): Net profit margin: 9.38% (2019), 9.86% (2018), 12.09% (2017) ROE: 7.07% (2019), 7.68% (2018), 6.69% (2017)
Investment Timeframe
Short Term (0–5 years)
6 experts estimated that it would take 3-5 years to see positive cash flow for investors.
Ticket Size
Heren Health (300550): Net profit margin: 9.38% (2019), 9.86% (2018), 12.09% (2017) ROE: 7.07% (2019), 7.68% (2018), 6.69% (2017).
Impact Case
Sustainable Development Need
According to China Hospital Information Management Association (CHIMA), the penetration rate of EMR in 2017-2018 was only 39% in China, which was far below than 95% in USA, while that of CDSS was 15% in China.
Gender & Marginalisation
Currently, medical resources are strained, and many patients do not receive adequate and effective assistance. The number of physicians is too small, resulting in many physicians not being able to adequately understand the patient's condition in order to give the appropriate treatment plan.
Expected Development Outcome
Provide patients with more efficient and accurate diagnoises.
CDSS will offer assistance for junior doctors and decrease the misdiagnosis rate.
To medical insurance and pharmaceutical companies, the data provided by the system can be used to study the patient group and hence design more innovative products.
Gender & Marginalisation
CDSS can solve the problem of insufficient resources of doctors, comprehensively analyze the patient's condition through big data, and formulate the most reasonable scheme for reference.
Primary SDGs addressed
3.8.1 Coverage of essential health services
3.8.2 Proportion of population with large household expenditures on health as a share of total household expenditure or income
3.b.3 Proportion of health facilities that have a core set of relevant essential medicines available and affordable on a sustainable basis
Secondary SDGs addressed
Directly impacted stakeholders
People
Indirectly impacted stakeholders
People
Planet
Corporates
Public sector
Outcome Risks
Hospitals sometimes lack motivation and capitals to make investments in improving their information systems.
Impact Risks
The use of smart information system may result in reduced employment for hospital administrative staff.
Impact Classification
What
The outcome is very likely to be positive and important because more intelligent and higher qualified medical services will be provided for patients.
Risk
Hospitals sometimes lack motivation and capitals to make investments in improving their information systems.
Impact Thesis
Provide patients with more efficient and accurate diagnoises, improve the efficiency and capacity of healthcare systems
Enabling Environment
Policy Environment
(Policy document): In February 2017, the National Health Commission published a document clarifying the definitions of EMR and providing management requirements as well as related standards.
(Policy document): In August 2018, the National Health Commission published document to emphasize the core position of EMR in the digitalisation of hospitals and clarify the responsibility of different hospital departments.
(Policy document): In April 2019, the National Health Commision published Notice on printing and distributing national standards and norms for informatization construction of primary medical and health institutions (Trial)
Regulatory Environment
(Regulation): The regulation of smart healthcare information systems remains at a moderate level, but clear technical requirements have been issued for companies in this sector.
(Regulation): In April 2019, the National Health Commission published a document detailing the standards for the construction of information systems in hospitals, including aspects such as software and hardware requirements and data security guarantees.
Marketplace Participants
Private Sector
Traditional private equity and venture capital firms are interested in investing in the healthcare informatics and TMT sectors.
Government
Local governments and hospitals are also potential co-investors.
Target Locations
China: Anhui
China: Jiangxi
China: Fujian
China: Yunnan
China: Guangdong
China: Beijing
China: Shanghai
China: Shenzhen
China: Wuhan
China: Chengdu
References
- (1) Ministry of Foreign Affairs,2019 https://www.fmprc.gov.cn/mfa_eng/topics_665678/2030kcxfzyc/P020190924780823323749.pdf "2) UNDP.2019 https://www.cn.undp.org/content/china/en/home/library/human_development/national-human-development-report-special-edition.html"
- (3)UN Women. (2020). Policy Brief: The Impact of Covid-19 on Women and Girls. UN Women.
- (21) chyxx.com, 2020, http://www.chyxx.com/industry/202002/833516.html
- (22) National Health Commission, 2017, Standard of electronic medical record application and management (Trial) (《电子病历应用管理规范(试行)》) , http://www.nhc.gov.cn/yzygj/s3593/201702/22bb2525318f496f846e8566754876a1.shtml
- (23) the National Health Commision, 2018, Notice on further promoting the informatization construction of medical institutions with electronic medical records as the core (《关于进一步推进以电子病历为核心的医疗机构信息化建设工作的通知》), http://www.scio.gov.cn/32344/32345/39620/41012/xgzc41018/Document/1659379/1659379.html
- (24) National Health Commision, 2019, Notice on printing and distributing national standards and norms for informatization construction of primary medical and health institutions (Trial) (《关于印发全国基层医疗卫生机构信息化建设标准与规范（试行）的通知》), http://www.nhc.gov.cn/cms-search/xxgk/getManuscriptXxgk.htm?id=9d346a5ef0134e6a82c79c5c9ab96b77