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UCMT Management Classroom | The Impact of the Epidemic on Healthcare Industry Development

Updated: Nov 10, 2022

Since the resumption of business and production, the medical and health care industry has enjoyed many dividends under the policy, But if companies want to flourish in the complex and changing environment, they still need to grasp the industry trends.

Recently, UCMT invited YU Guangjun, President of Shanghai Children's Hospital/Shanghai Jiaotong University Children's Hospital, researcher and doctoral supervisor, PENG Xueping, Chairman of UCMT-UM-DHM-2020, XUE Ping Big Health Industry Group Co. , and LI Yuan, Director of Internet Healthcare and E-commerce of UCMT-UM-MHM-2021, Shanghai Peili Marketing Consulting Co. Ltd. on the topic of "Development trend of medical and health industry in the era of epidemic". The event was hosted by Zhanbin Shi, General Manager of UCMT Corporate Development and Talent Training Center, and the following is the main content of the event.

 

1. TRENDS IN THE MEDICAL AND HEALTH CARE INDUSTRY

Changes in the general environment will undoubtedly have an impact on the industry. Currently, with epidemic outbreaks, volatile situations and uncertainty become the norm. companies wanting to develop in line with the times must first understand what the current industrial environment is like to make better plans and open the road to innovation.

The SARS in '03, the highly pathogenic avian influenza in '04, the influenza A pandemic in '09, the flu in '18, the novel coronavirus in '20, etc., we seem to have met too many emergencies. However, in addition to the "trauma" of these emergencies, there are also opportunities, and new business models are emerging.

The SARS epidemic in 2003 facilitated the rise of e-commerce conglomerates Taobao and JingDong, which had a short-term impact on some aspects of the economy and industry, but also resulted in a change in habits and business models that became a long-term development trend. This epidemic outbreak has led people and businesses to focus more on using online channels to solve the difficulties they currently face in lockdown. Unmanned retail, online entertainment, telecommuting, virtual reality, and other ways to leverage the internet and reduce the spread of the epidemic have also become a way of survival that many businesses have had to choose.

Industries such as teaching and training, travel and real estate that require face-to-face interaction as well as cross-regional interaction have been hit hard by the current environment, but others have come into prominence as a result.

Understanding how to face adversity is far more important than how to accept the good times. It is impossible for a business to have smooth sailing on its path, and those that survive adversity have great resilience and an eye for finding opportunities in a crisis.

Shanghai Children's Hospital, Shanghai Jiao Tong University affiliated children's hospital president, graduate student, doctoral director Yu Guangjun said that we have to look for opportunities and breakthrough innovation in the crisis, and there are three main levels of dealing with the crisis as follows.

1. Crisis prevention: enhance the sense of worry, "the duck knows when the water is warm in spring", we must know the "water temperature" in advance, and secondly, use the certainty of efforts to cope with the uncertainty of the future, that is, enhance physical fitness and increase disaster preparedness.

2. Handling of crises: improving the ability to handle them, having reserves and plans, avoiding panic and returning to common sense.

3. Growing in the crisis: nurturing first opportunities in the crisis, opening new innings in the change; increasing resilience and growing in the crisis.

At the same time, he believes that in terms of the general trend, a long and healthy life is the eternal pursuit of mankind, the development trend of the medical and health care industry is good, and in the case of the general trend remains unchanged, what changes is the structure.

Indeed, as proposed in the report of the 19th National Congress of the Central Government, "implementing the health China strategy" as an important element of the basic national development strategy and "building the medical and health industry into a national pillar industry" as emphasized by the Premier in 2017, the medical and health industry will usher in the medical and health industry will see great development.

 

2. ALUMNI INSIGHTS



The three alumni also discussed with the moderator on the development of the healthcare industry in the light of the epidemic.

Q: In the current context, the healthcare industry is supposed to be growing positively, but it is not as smooth as one would expect, what is the opinion on this situation?

Yu Guangjun: In the case of a positive general trend, the structure will change, and the most basic structural change is to look at the change in demand. In the epidemic prevention and control, there is a demand for protection, nucleic acid, vaccines, etc. We can be demand-oriented, but this change in demand should also be judged in the context of the general macro policy, to anticipate its development trend as well as to plan how our next step should be.

Peng Xueping: The epidemic is related to the impact of the whole big international and domestic environment, the medical big health industry compared to real estate, education and training, tourism and other industries, its development is relatively good. At present, medical big health industry in the United States accounted for 17.8%, in Japan and Canada accounted for more than 10%, China accounted for about 5%, there is still a lot of room for development.

In times of economic difficulties and downward pressure, the state has also introduced relevant policies to ensure a smooth transition in the market, allowing more innovative enterprises to "come to life". However, in the face of the current uncertain environment, we need to stabilize our mindset, adhere to the spirit of craftsmanship, adhere to original aspiration, craftsmanship heritage, and make products with the heart of an artisan. As an entrepreneur, especially a private entrepreneur, without decades or even centuries of historical heritage, we must have the persistent pursuit, in the spirit of unremitting efforts, to tell the story of the company, inject the spirit of the brand, and persevere it.

Li Yuan: The development of the healthcare industry needs to be patient- and consumer-centric, which is the main premise. From the current capital mall, certain specific therapeutic areas or methods have gained some favor in the capital market; from the medical industry, it is a relatively long return cycle; from the current state of the economy, investment in the medical industry has not necessarily kept pace with the expansion.

But when placed in a recessionary or contingency-rich environment, the healthcare sector is a great sector to invest in and there are specific areas where its future breakthroughs may be possible - for example, several companies in the IPSC space received Series C funding earlier this year.

In addition, we should also pay attention to the application of the Internet and the digital economy in the healthcare industry. 20 years ago, a large number of digital therapies have passed FBA certification in the United States, but in China, the progress of digital therapies has been relatively slow. During the epidemic, digital therapies for diagnosis or companion diagnosis can actually help patients very well, and we can pay more attention to the development of digital therapies.

Q: These are complex and changing times, and the epidemic has had a significant impact on the healthcare industry.

Li Yuan: Churchill said, "Never waste a crisis", and I agree with this saying, because there are two sides to the coin, and while there are crises, there are also opportunities.

From a personal perspective, I never ran out of supplies during the three months of quarantine in Shanghai because I stocked up on supplies before the quarantine. For enterprises, they should also "stockpile materials", but here the materials are projects, and they should reserve projects before the outbreak, which may exist in the existing system or outside the existing system. When stockpiling projects, companies should operate according to the principle of "low cost + small scale". The "hoarded" projects may be small, but in times of epidemics, they can be magnified and become a turning point for the company.

Peng Xueping: At present, the offline business of the medical service industry companies have been very skilled, now need to focus on online services, in the future, the Internet +, big health industry will burst into a different light, for example, the medical examination industry and Chinese medicine is closely related, in the future medical examination can be used as an entrance, the Internet + Chinese medicine track will usher in a once-in-a-century opportunity.

Hospital to ensure the basic serious medical care is a very strong support for the country, is the people must solve the emergency management problem, this part, the state in a comprehensive three-tier A, two A, as well as urban, rural and other hospitals, clinics have made a considerable investment. And as a private enterprise, we have to be more front, what the public hospitals do is not the focus we want to pursue, our focus should be on the previous step of emergency management, for example, the indicator management, the indicator management as a big data portal.

Q: What is the best study advice you can give in the moment? What have you gained in the learning process?

Yu Guangjun: From the perspective of studying medicine, doctors are a profession that requires lifelong learning. There are several ways to continue lifelong learning, the first is passive learning, looking for answers after encountering problems; the second way is active learning, such as participating in continuing medical education to constantly update one's knowledge; the third way is participating in forums to exchange ideas and techniques and establish better cooperation between peers. The fourth way is to continue to improve your education, for example, doctors usually continue to study for a PhD or a master's degree to learn systematic knowledge, because usually reading information is fragmented, through the systematic study of postgraduate students, you can learn the way of systematic research and the process of building future research networks.

From the enterprise perspective, through learning you can iterate on outdated ideas, different ideas will have different strategies, which will have a relatively large impact on your business. Secondly, enterprises nowadays need a certain level of resilience in the face of an uncertain environment, and a very important point about resilience is resources. Learning is a process of building resources in addition to learning, and when you have enough resources, you will have more options to make a quicker response when you encounter conflicts.

Peng Xueping: I chose to study for a PhD at Montpellier for three reasons. Firstly, it is to fulfill my dream of a PhD, and the faculty of both Montpellier University and Shanghai Jiao Tong University are very strong, so I can learn about global healthcare management; secondly, systematic learning can better expand my cognition and improve my judgment ability. As a business manager, if my own knowledge cannot keep up with the times and keep iterating, it will be difficult to lead my team to take the right path; finally, the students I shared the school with are all elites in the industry, and I can learn a lot from them and expand my network resources.

Li Yuan: First of all, as someone in the healthcare industry you have to be a lifelong learner; secondly, personally, being around people who love to learn more relieves my anxiety, and taking action and keeping learning will combat it; and finally, the classes I take in this program help me solve problems I encounter in my business, such as last week's course on human resources management in the healthcare industry, where we had a discussion about situations that arise in an epidemic. It just so happens that my business has encountered such a problem, so I think it's very meaningful for me.

 

3. FACILITATOR'S SUMMARY - THE VALUE OF SYSTEMATIC BUSINESS LEARNING

It is clear that the value of learning is no longer limited to the acquisition of knowledge; the value of cognition and linkage in the learning process is also particularly important.

The first is the value of "cognition". Systematic learning is seeing the essence through the phenomenon, which means that we need to become thought leaders by systematizing our knowledge, analyzing and exploring it scientifically, and coming up with new concepts and ideas.

The "metaphysical" philosophical methodology, which is lacking in the development of Chinese enterprises, is the "root" and "essence" of all our learning and analysis, and is the "wisdom" that helps us to see through the essence behind the problems. Through systematic and scientific analysis and exploration, accumulation and precipitation of knowledge, we can help and promote the future of industry, policy enhancement, industry innovation and social change.

The second is the value of "links". Alumni from various fields in the same industry and from different backgrounds are a very valuable asset to us. Classmates are not only teachers and friends, they are also key resources in our industry ecosystem. In the digital era, what is important is no longer what we have, but what we can link to. Links between classmates, links with professors, links between companies, etc., are a greater value than "success" that we need to pursue besides "learning and research". We need to look for more values than "success".



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