A Decade of Dreams for Internet Healthcare Remain Unrealized(AI Translation)

【周刊提前读】互联网诊疗十年造梦难成真 壁垒为何打不破？

A group of early-stage internet medical platforms faces a strategic conundrum: focus on "medical consultations," venture deeper into "pharmaceutical sales," or risk stagnation. The landscape of online pharmaceutical e-commerce has seen rapid growth despite recent market slowdowns, with companies like Alibaba Health and JD Health going public. The competition is transitioning from the mature B2C market to the evolving O2O segment, where supply chain strength and stable traffic are essential for success, posing significant hurdles for new entrants [para. 1-2].

The initial optimism surrounding internet healthcare platforms' potential to challenge public healthcare's monopoly has waned. Companies such as HaoDaiFu Online have experienced multiple rounds of layoffs, shrinking staff, and acquisition rumors. First-generation startups like Chunyu Doctor and WeDoctor also face uncertainty, struggling to prove viable business models or survive through cost-cutting [para. 3-4].

Even well-backed second-generation companies struggle. Ping An Good Doctor, despite heavy financial backing from its parent company, has not achieved profitability. Concurrently, JD Health and Alibaba Health are deeply entangled in pharmaceutical sales while still experimenting within the medical sector. Meanwhile, problems persist for systems like Miaoyijia Health, which, despite significant investment, faces substantial financial challenges and enforcement actions [para. 5-6].

Investor sentiment continues to sour. There’s a pessimistic viewpoint that unprofitable internet healthcare platforms cannot sustain themselves. Zhou Jun, Founding Partner of Yoho Capital, argued that a company must be profitable or attract capital to survive. Market realities show investors leaving the sector or staying cautiously on the sidelines, with current valuations declining sharply. An internet healthcare entrepreneur called it a "buyer's market," lacking interested buyers amid an abundance of sellers [para. 7-9].

A bleak picture is painted by the example of Ark Health, which, after multiple attempts, debuted on the Hong Kong Stock Exchange to an immediate 44.62% drop in stock price. The enthusiasm that marked the sector's rise ten years ago is all but extinguished as key resources like quality doctors and social insurance remain monopolized by the public health system. The dream of using technology to rectify healthcare imbalances seems increasingly unachievable [para. 10-11].

Reflecting on these difficulties, Liu Ming from Caixin and Lingyi Chuangzao suggests that the journey of internet healthcare is far from complete. The sector must navigate stringent operational demands amid broader economic transformations and needs to embrace regulatory, payment, and technological advancements proactively. Crucial questions remain about whether technological innovations alone can overcome the indomitable challenges posed by traditional healthcare structures [para. 12-13].

One stark example is Haodf.com, one of China’s earliest internet healthcare platforms. Since its inception in 2006, it has faced significant setbacks, including diluted focus from pioneering online consultations to managing hefty layoffs and ownership changes. The pandemic initially bolstered the sector, with companies like Haodf.com experiencing temporary surges in demand, but these gains proved short-lived as operational difficulties persisted [para. 14-16].

Similar challenges plague other players like Ping An Good Doctor, which continues to face annual losses and layoffs. A comparable trend was seen with WeDoctor and Spring Rain Doctor, both struggling also to convert their services into profitable, sustainable models [para. 17-20].

Across the industry, attempts to extract revenue from consultation fees and membership models have met limited success. Persistent issues include low user adoption, high competition, and the inherent nature of healthcare services, which make profitable monetization difficult [para. 21-24].

Furthermore, collaboration with insurance companies offers some promise but remains underdeveloped, and sectors like chronic disease management show potential for revenue but face stiff market competition. Ultimately, internet healthcare's ventures into pharmaceutical sales, an area with arguably better prospects, represent the only relatively successful business model to date [25-28, 30-34].