China’s Basic Medical Insurance System serves over 1.4 billion people. The continued growth of this cost increasingly signified an urgent need to create a national group platform designed to systematically control costs and improve the efficiency of China’s medical insurance. Given this background, the National Group Purchasing of Healthcare Resources established the laboratory. Chinese are also increasingly turning to private insurance, which provides better coverage with lower co-payments than public insurance.





To better manage public health records, expenditure, and payments towards private insurance, Beijing is looking to implement a new platform.



The platform will gradually adopt blockchain technology in support of tracing and tracking drugs and medical consumables also facilitating highly efficient peer-to-peer money transactions and data transmission among stakeholders. Chinese authorities have also recently undertaken initiatives to negotiate specific drug prices with international pharmaceutical companies directly and to do so they need a transparent and efficient platform comprehensively supported by the healthcare data collected across all of the Chinese basic medical insurance agencies.





Chinese healthcare is mostly manually reconciling medical data across clinics, pharmacies and insurance companies. For the private and public insurance market that is supposed to grow up to $730 billion by the year 2020, this is a big problem. Currently, healthcare transactions are slow and expensive, data privacy and security are a big problem. The government in China has identified blockchain technology as a key technology in combating fraud and ensuring regulatory compliance across healthcare financial services also to solve issues relating to healthcare resources, procurement and to support more efficient evaluation and supervision of the purchasing process.





Because of this Chinese government and giants like Tencent and Alibaba have made significant investments in emerging digital health platforms and identification verification blockchain tech.

Alibaba is supposedly accounted for 10% of Blockchain-Related Patents in 2017 and is heavily investing in pharmaceuticals business (pharmaceutical retail).







Given the information, it is an excellent opportunity to invest in tech companies working on blockchain tech that are partnered or involved with Chinese authorities, Alibaba and Tencent.











Sources





https://www.bcg.com/publications/2018/prescription-for-blockchain-healthcare.aspx



https://chinapower.csis.org/china-health-care-quality/



https://www.blockchain-council.org/blockchain/healthcare-industry-future-with-blockchain-technology/



https://medium.com/@thekeyvip/national-group-purchasing-of-healthcare-resources-kick-off-meeting-hosted-by-thekey-in-beijing-1a9d1383a4f0













