Analysis of the Current Situation and Trends of the Development of Big Health Industry

: The medical and health industry aims to maintain and promote people's physical and mental health, including medical services, health management and promotion, health insurance and related services. Compared with the traditional health industry, the big health industry does not sell a single product, but provides solutions for people to live a healthy life, thus creating greater business opportunities. The report of the 19th National Congress stressed the development of the health industry and the building of a healthy China. Health industry is an emerging industry with huge market potential, and it has the characteristics of "broad employment prospects, large consumption demand, and promoting the health and longevity of citizens".


Overview of Great Health
Large health industry refers to a series of health product production and management, service provision and information dissemination industries related to health maintenance, health repair and health promotion. It usually includes pharmaceutical industry, pharmaceutical business, medical services, health care products, health care services and so on.
In recent years, with the active promotion of the government, the continuous study of experts and scholars, the continuous adjustment of industrial layout, and the continuous improvement of residents' demands, there are six basic industrial groups in China's big health industry at present: the first is the medical industry with medical service institutions as the main body; Second, the pharmaceutical industry is dominated by the production and marketing of drugs, medical devices and medical consumables. Third, health care products industry with health food and health products as the main body; The fourth is the health management service industry with health detection and evaluation, consultation service, conditioning and rehabilitation, and security promotion as the main body; Fifth, the health care industry; Sixth, tourism health. Now the dimension of the big health industry has expanded from a narrow to a wider and deeper scope.
In recent years, governments at all levels have done a lot of work in the field of health, such as establishing a resident medical insurance system covering both urban and rural areas, increasing the medical insurance subsidy standard year by year, promoting the reform of county-level public hospitals, and eliminating the use of drugs to support doctors. At the same time, they have put forward many ideas, ideas and documents, such as the Opinions on Promoting the Development of Health Service Industry in 2013. The "health service industry" has been elevated to the national strategic level, requiring that by 2020, the total scale of the health service industry will increase from the current 2 trillion yuan to more than 8 trillion yuan; For example, in 2014, the Commission of Health and Family Planning started the selection of the first batch of domestic medical equipment, and selected three basic medical equipment, namely digital Xray machine, color Doppler ultrasonic diagnostic instrument and automatic biochemical analyzer, as the first batch of selection items, which sent a positive signal to the domestic medical device industry. For example, in the communique of the Fifth Plenary Session of the 18th CPC Central Committee in 2015, it was proposed to promote the construction of a healthy China, deepen the reform of the medical and health care system, rationalize the price of drugs, implement the linkage of medical care, medical insurance and medicine, establish a basic medical and health care system covering urban and rural areas and a modern hospital management system, and implement the food safety strategy. For example, in October 2016, the CPC Central Committee and The State Council issued the Outline of the Healthy China 2030 Plan, placing health at the national strategic level.
Under the active promotion of the government, the big health industry is gradually expanding and the industrial strength is becoming stronger and stronger. However, due to many factors and social productivity and other factors, there are still many problems in the basic medical and health services in China. Doctor-patient disputes often occur, urban hospitals are overcrowded, and rural medical and health institutions are struggling. Food and drug safety, drinking water safety, environmental problems and other problems also restrict the development of great health; Health care products flooding, quasi use system is not perfect, medical consumables quality is not high; A series of processes, such as the high cost of health testing and the need for institutional protection of health system, have brought new pressure to the protection of national health and put forward new thinking to the big health industry.

The Status Quo of Chinese Health
Industry Development

The Development of China's Major Health Industry is Relatively Backward
Relevant research reports show that the big health industry has become the world's largest emerging industry. However, compared with the United States, Japan and other developed countries, and even many developing countries, China's big health industry is still in its infancy. Statistics show that the health industry accounts for more than 15% of GDP in the United States, and more than 10% in Canada and Japan. In China, the health industry only accounts for 4%-5% of GDP. Facing the great pressure of the aging population of more than 200 million, the key core of the problem is how to promote the health and elderly care service industry, which has aroused great attention at the national level.

The Supporting Services of the Major Health Industry Base Lag Behind, which is Difficult to Meet the Needs of Production Development
The pharmaceutical industry is relatively backward, and the development speed of recuperation and rehabilitation, elderly care and health care is relatively slow. In particular, the infrastructure construction of the big health industry lags behind, which brings certain negative energy to the big health industry. At the same time, the project management services such as medical product design, quality system establishment, testing management and clinical trials are not sound enough.

The Overall Level of Pharmaceutical Manufacturing in the Big Health Industry is not High Although Our Pharmaceutical Manufacturing Industry has been Issued Scale, But the Industrial Level is Limited to the Low-End Industry
The pharmaceutical manufacturing industry is still dominated by pharmaceutical intermediates and apis. The output value of intermediate manufacturing links such as manufacturing of chemical pharmaceutical preparations, production of Chinese patent medicines and manufacturing of chemical pharmaceutical ingredients accounts for a larger proportion of the total output value of the pharmaceutical manufacturing industry.
There are not many cutting-edge enterprises in the field such as biological pharmaceutical manufacturing and manufacturing of medical diagnosis, monitoring and treatment equipment with higher technology content and high added value. Lack of universality, lack of large innovative enterprises.

Unbalanced Development of Medical and Health Services in the Major Health Industry on the One Hand
The distribution of resources is unbalanced: the medical level of provincial capitals and developed cities is higher, while the medical maintenance service level of remote areas and poor areas is obviously lower. From the perspective of institutional distribution, high-quality medical and health resources are mostly concentrated in general hospitals, while the basic medical institutions such as community health services closer to the masses are relatively weak. On the other hand, the industrial development is not balanced. At present, the major health is still dominated by medical and health services. The convalescence services, health management services and other services have not formed industrial agglomeration effect, and the related industries lack linkage and sharing. Public medical and health resources are abundant, but in the fields of recuperation and maintenance, health management and technical support services, there has not yet been an industrial scale.

The Health and Elderly Care Industry has a Scale But its Development Structure is Not Perfect the World's Population is Aging
At the beginning of the 20th century, children under the age of 15 still accounted for one-third of the world's population, while the number of people over 65 stood at about 3%. This situation has changed with the development of social economy, the increase of human life expectancy and the implementation of population control policies in some countries, and has now entered a stage of rapid change. According to the UN's forecast, from 2015 to 2050, the number of the world's elderly population over 60 years old will surge from 901 million to 2.092 billion, surpassing the number of children (0-14 years old) for the first time, from 12.3% of the global population to 21.5%. Population aging will be a big problem that troubles the whole world. This has led to the continuous development of the pension industry. At the same time, the government has vigorously promoted the development of the healthy pension industry by promoting policy innovation, optimizing resource allocation, cultivating market players and other measures. Nursing homes, rehabilitation centers for the elderly, nursing homes and other services for the elderly have been set up, and their services have also been upgraded, gradually extending from general food delivery, house cleaning and medical care to rehabilitation treatment, psychological comfort, sports, entertainment and other aspects.
But at present, the structure of the development of the healthy endowment industry in our country is imperfect, and the endowment service supply and demand are unbalanced. At present, the unbalanced distribution of pension service resources, the single service and the low service level have led to the high bed idle rate in some pension institutions.

The Health Industry has a Bright Future
With the implementation of the 13th Five-Year Plan, Healthy China has been upgraded to a "national strategy". In order to open up the commercial blue sea of the big health industry, domestic enterprises have put forward the strategy of "re-entrepreneurship". This round of entrepreneurship is to conform to the development trend of the global economy and rely on the big health industry to achieve acceleration and increment, cross-border integration and innovative development.
"Big Health is a sunny industry after IT, and countries around the world are paying attention. In developed countries, the value added of the health industry accounts for more than 15% of GDP, while in our country, it only accounts for 4%-5% of the GDP, which is lower than that of many developing countries. In order to effectively improve this situation and stimulate the huge potential of the health industry, the state proposes to basically establish a health service system covering the whole life cycle, rich connotation and reasonable structure, build a number of well-known brands and a virtuous cycle of health service industry clusters, and form a certain international competitiveness, basically meet the health service needs of the general public. The total scale of the health service industry has reached more than 8 trillion yuan, becoming an important force driving sustained economic and social development.
There is no doubt that the big health industry is a sunrise industry, and it will have a blue sea of one hundred trillion market in the future, with huge potential. The 21st century will be a golden age for the development of the big health industry, which will provide the biggest business opportunities. In the face of opportunities, how to seize them will be a great challenge. As the core industry of the 21st century economy, the one who takes the lead will be the winner. Paul Pilzer, a famous economist who served twice as an economic adviser to President Bill Clinton, said in his book The Fifth Wave of Wealth that Great health will become the fifth wave of wealth, following the four waves of wealth created by steam engine, electrification, computers and the Internet.

Xingjian Builds a Leading Brand in the Big Health Industry
Xingjian is a wholly-owned subsidiary of Fosun Group for the development of the health sector, committed to the upgrading of urban health life, and continuously improving the quality of people's health life. By March 2018, four projects were launched in Shenzhen, Ningbo, Shenyang and Suzhou, expanding to 3,000 nursing beds and joining the firsttier camp of the domestic pension industry.
Xingjian focuses on old-age care and comprehensively integrates resources in various fields of the big health industry. The number of beds is expected to double by the end of 2019.

The Natural Advantages of Xingjian in Developing Large Health Industry
Xingjian has "1+ 1+T" core advantageous resources in real estate, finance and medicine.
1) Fosun Real Estate platform commercial real estate + logistics real estate + pension real estate + tourism real estate + property, etc.

Xingjian Creates a New Profit Model for the Pension Industry
Xingkin adopts the profit model of "heavy and heavy" and uses asset-heavy profit to expand the management scale and gradually transition to an asset-light platform (see Figure 4). Both asset-heavy operation and asset-light management form their own complete profit loop. In terms of asset operation, through raising funds, cooperating with bank loans and own funds, we invest in the development of healthy Honeycomb project, focusing on the expansion of healthy in the real estate field. Through the sale, holding and transfer of bulk assets in the form of realization of profit, so that shareholders gain income. This asset-heavy operation is similar to the traditional real estate development model. In terms of assetlight management, our own operation management company can operate and manage nursing homes, medical institutions and rehabilitation centers in the health hive through leasing and acquisition, and generate asset-light profits by charging service fees. After scale expansion, capital market value realization is considered.

Xingjian Plans the Strategic Development Route of the Elderly Care Industry
Our future development model is to build a "home + community + institution" -Zhonghua pension model with "combination of medical care" as the core and insurance and big data as the support.

Xingjian Improves the Whole Set of Pension Investment Business Operations
It is crucial to get pension and medical care together. Oldage care cannot be separated from medical care, and the combination of medical and nursing care is indispensable. At present, some doctors and nurses will be invited to take care of the elderly in the real estate products for the elderly. However, this is an enterprise behavior rather than a government behavior, which cannot be well guaranteed and won the trust of the elderly. Most of the elderly do not need to go to large hospitals for their diseases, but only need community-based medical services. The basic condition for realizing the combination of medical and nursing care is that the hierarchical system of medical services goes into the community. Xingjian's business segment: investment, pension and medical care.

The Layout of Xingjian's Big Health Platform has been Complete
At present, the board of directors has taken the big health industry as one of the most important strategies of Fosun Group in the future, and the resources and funds within the group will be inclined to the big health industry. The layout of Star Health platform has been complete.
lii Xing Jian Capital undertakes two functions in the strategic pattern of great health: one is the construction and resource integration of Fosun Beehive city physical products; The second is the construction of Fosun health care service platform. Our vision is to become the number one brand of elderly health services in China. In the next three years, Star Health Capital will complete the layout of 10 cities in China, and build 10 health hives, 30 nursing homes or elderly care institutions and 50-day care centers, which are expected to benefit 100,000 elderly people.

Increase Scientific and Technological Innovation, and Constantly Improve the Level of the Big Health Industry
With the six industrial chains of Great Health as the benchmark, the innovation chain is deployed and actively promoted in the aspects of talent team training, new product development, new technology application, achievement transformation and industrialization. Through scientific and technological innovation to drive the restructuring of the pharmaceutical industry and the transformation and upgrading of enterprises, with the support of high-tech development zones, we will vigorously develop the health industry. At the same time, actively promote the policy, improve the policy of opening up the market access, and cultivate the industry-leading and innovation-leading medical enterprises.

Advancing Structural Reform and Improving the Distribution of Medical and Health Services
It is necessary to give full play to talents and resources in medical institutions, institutions of higher learning and scientific research institutes, and actively guide social capital and investment subjects into various fields of health service industry. The establishment of a health industry system covering the medical industry, medical consumables production and marketing as the main body of the pharmaceutical industry, health products production and marketing as the main body of the health product industry to health testing and evaluation, consulting services, conditioning and rehabilitation and security promotion as the main body of the health management service industry, health care industry and tourism health industry. We should optimize the policy environment, adhere to marketization and industrialization, remove unreasonable restrictions and hidden barriers for social forces to enter the big health industry, support the development of the health insurance industry, promote the high-level and large-scale development of non-public medical institutions, and strive to build a number of comprehensive health platform enterprises with national influence.

Adhere to Local Conditions and Promote Diversified Development of the Health Industry
Take advantage of government policies, actively diversify the big health industry, find out the key points, vigorously develop the cutting-edge industries such as biomedicine, medical devices, biological agriculture, and cultivate the growth pole of the health industry; Relying on the green ecological environment, the establishment of science and technology industry base, forming a collection of health care, health care, rehabilitation, fitness and medical system in one, give full play to the characteristics and advantages, with industrial agglomeration effect to drive the vigorous development of the health industry.

Actively Promoting Community Rehabilitation Centers and Expanding Their Coverage
In the three-level system construction of rehabilitation in our country, from the point of view of the number of rehabilitation institutions, there is obvious contradiction between demand and supply end, especially the serious shortage of community rehabilitation construction. According to the data in 2016 China Rehabilitation Medical Industry Development Status and Market Scale Forecast released by China Information Network, 56% of community medical and health places have not set up rehabilitation departments, and the titles of community rehabilitation personnel are mainly junior titles, only 25% of rehabilitation personnel have participated in rehabilitation training in one year, which is far from meeting people's needs for rehabilitation medical. The lack of construction of community rehabilitation institutions makes it impossible to implement the hierarchical and phased rehabilitation medical service system proposed in the "Twelfth Five-Year" Period of rehabilitation medical work guidance.

Conclusion
To quote a popular saying in rehabilitation circles: "Rehabilitation is not a cure, but a remission." Traditional patients, especially elderly patients, usually follow the doctor's advice to go home for recuperation after surgery, but in fact, home recuperation mostly belongs to "low-quality life".
The establishment of community rehabilitation institutions can enable patients to be evaluated by professionals after they return to the community. Combined with the self-needs of patients, patients can achieve independence and improve the quality of life, and actively promote the development of the industry.