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WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
WHARTON WHARTON CHINA BUSINESS FORUMCHINA BUSINESS FORUM
EMERGING OPPORTUNITIES EMERGING OPPORTUNITIES IN CHINA H.I.T.IN CHINA H.I.T.
PHILADELPHIA, PENNSYLVANIA FEBRUARY 6, 2010
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 2 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
TODAY’S PRESENTATIONTODAY’S PRESENTATION
DESCRIBE DORENFEST IN CHINADESCRIBE DORENFEST IN CHINA
PROVIDE A FEW HIGHLIGHTS ABOUT HEALTHCARE IN CHINAPROVIDE A FEW HIGHLIGHTS ABOUT HEALTHCARE IN CHINA
DISCUSS THE H.I.T. SITUATION IN CHINADISCUSS THE H.I.T. SITUATION IN CHINA
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 3 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
THE DORENFEST GROUPTHE DORENFEST GROUP
HEALTHCARE CONSULTING AND INVESTMENT FOCUSHEALTHCARE CONSULTING AND INVESTMENT FOCUS
OFFER HEALTHCARE IMPROVEMENT SERVICES TO SUPPORT A MORE OFFER HEALTHCARE IMPROVEMENT SERVICES TO SUPPORT A MORE POSITIVE WORLD FUTUREPOSITIVE WORLD FUTURE
HELP HEALTHCARE ORGANIZATIONS TO IMPROVE HEALTHCARE SERVICES HELP HEALTHCARE ORGANIZATIONS TO IMPROVE HEALTHCARE SERVICES WHILE REDUCING COSTS BY IMPROVING WORK PROCESSES, MANAGEMENT WHILE REDUCING COSTS BY IMPROVING WORK PROCESSES, MANAGEMENT SYSTEMS, SERVICES TO PATIENTS, AND QUALITY OF MEDICAL CARESYSTEMS, SERVICES TO PATIENTS, AND QUALITY OF MEDICAL CARE
IN 2006 THE DORENFEST GROUP FORMED THE DORENFEST CHINA IN 2006 THE DORENFEST GROUP FORMED THE DORENFEST CHINA HEALTHCARE GROUP, BASED IN SHANGHAI, TO BRING OUR SKILL, HEALTHCARE GROUP, BASED IN SHANGHAI, TO BRING OUR SKILL, TECHNOLOGY, AND CAPITAL TO CHINA IN A TWO-PHASE PROGRAMTECHNOLOGY, AND CAPITAL TO CHINA IN A TWO-PHASE PROGRAM
WE ARE NOW OPERATING IN PHASE 1 OF THIS PROGRAM, OFFERING A WE ARE NOW OPERATING IN PHASE 1 OF THIS PROGRAM, OFFERING A VARIETY OF CONSULTING, TRAINING, AND EDUCATION SERVICES TO THE VARIETY OF CONSULTING, TRAINING, AND EDUCATION SERVICES TO THE CHINA HEALTHCARE SYSTEMCHINA HEALTHCARE SYSTEM
WE EXPECT TO ENTER PHASE 2 OF OUR ACTIVITIES IN CHINA IN LATE 2010 OR WE EXPECT TO ENTER PHASE 2 OF OUR ACTIVITIES IN CHINA IN LATE 2010 OR 2011 WHEN WE WILL BEGIN TO MAKE INVESTMENTS IN WELL-DEFINED, GOOD 2011 WHEN WE WILL BEGIN TO MAKE INVESTMENTS IN WELL-DEFINED, GOOD BUSINESS PROJECTS, IN PARTNERSHIP WITH CHINESE HEALTH BUREAUS AND BUSINESS PROJECTS, IN PARTNERSHIP WITH CHINESE HEALTH BUREAUS AND HOSPITALSHOSPITALS
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 4 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
DORENFEST 2005 INVESTIGATION OF HEALTHCARE IN CHINADORENFEST 2005 INVESTIGATION OF HEALTHCARE IN CHINA
1.1. VISITED 17 CITIES IN CHINAVISITED 17 CITIES IN CHINA
2.2. MET 100’S OF HEALTHCARE INDUSTRY LEADERS IN CHINAMET 100’S OF HEALTHCARE INDUSTRY LEADERS IN CHINA
3.3. VISITED OVER 100 HOSPITALS TO REVIEW HOSPITAL OPERATIONS AND VISITED OVER 100 HOSPITALS TO REVIEW HOSPITAL OPERATIONS AND DEFINE OPPORTUNITIES FOR IMPROVEMENTDEFINE OPPORTUNITIES FOR IMPROVEMENT
4.4. MET PROVINCIAL AND CITY HEALTH BUREAU LEADERS IN CITIES VISITEDMET PROVINCIAL AND CITY HEALTH BUREAU LEADERS IN CITIES VISITED
5.5. MET WITH MANY COMPANIES SELLING PRODUCTS AND SERVICES TO THE MET WITH MANY COMPANIES SELLING PRODUCTS AND SERVICES TO THE HEALTHCARE INDUSTRY IN CHINAHEALTHCARE INDUSTRY IN CHINA
6.6. EVALUATED A GROUP OF HOSPITAL OWNERSHIP AND MANAGEMENT EVALUATED A GROUP OF HOSPITAL OWNERSHIP AND MANAGEMENT OPPORTUNITIES AND ASSESSED VIABILITY OF THE DORENFEST “MODEL OPPORTUNITIES AND ASSESSED VIABILITY OF THE DORENFEST “MODEL HOSPITAL” IN CHINAHOSPITAL” IN CHINA
7.7. DEVELOPED A STRATEGY FOR BRINGING DORENFEST SKILL AND DEVELOPED A STRATEGY FOR BRINGING DORENFEST SKILL AND EXPERIENCE TO CHINAEXPERIENCE TO CHINA
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 5 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
DORENFEST CHINA PHASE 1 BUSINESS OPERATIONSDORENFEST CHINA PHASE 1 BUSINESS OPERATIONS
HOSPITAL AND HEALTH BUREAU MANAGEMENT CONSULTING HOSPITAL AND HEALTH BUREAU MANAGEMENT CONSULTING
– OPERATIONS IMPROVEMENT AND CHANGE MANAGEMENTOPERATIONS IMPROVEMENT AND CHANGE MANAGEMENT
– STRATEGIC PLANNING FOR NEW I.T. SYSTEMSSTRATEGIC PLANNING FOR NEW I.T. SYSTEMS
– I.T. SYSTEM SELECTIONI.T. SYSTEM SELECTION
– I.T. SYSTEM IMPLEMENTATIONI.T. SYSTEM IMPLEMENTATION
– WORK PROCESS IMPROVEMENTWORK PROCESS IMPROVEMENT
– MANAGEMENT TRAININGMANAGEMENT TRAINING
– INTERIM I.T. MANAGEMENT SERVICESINTERIM I.T. MANAGEMENT SERVICES
– OTHER SERVICES OTHER SERVICES
GENERAL MANAGEMENT CONSULTING FOR HEALTHCARE COMPANIESGENERAL MANAGEMENT CONSULTING FOR HEALTHCARE COMPANIES
– CHINA ENTRY STRATEGIESCHINA ENTRY STRATEGIES
– MARKET ANALYSESMARKET ANALYSES
– PRODUCT STRATEGIESPRODUCT STRATEGIES
– MARKET RESEARCHMARKET RESEARCH
– IMPLEMENTATION CONSULTINGIMPLEMENTATION CONSULTING
EDUCATIONAL PROGRAMS FOR HOSPITAL AND HEALTHCARE BUREAU LEADERS EDUCATIONAL PROGRAMS FOR HOSPITAL AND HEALTHCARE BUREAU LEADERS
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 6 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
SOME RECENT CLIENT EXAMPLES IN CHINASOME RECENT CLIENT EXAMPLES IN CHINA
EXAMPLES OF HEALTH BUREAU CLIENTS EXAMPLES OF HEALTH BUREAU CLIENTS
– SHENZHENSHENZHEN
– CHONGQINGCHONGQING
EXAMPLES OF HOSPITAL CLIENTSEXAMPLES OF HOSPITAL CLIENTS
– SHANGHAI CHANGNING MATERNITY AND INFANT HEALTH INSTITUTESHANGHAI CHANGNING MATERNITY AND INFANT HEALTH INSTITUTE
– PEKING UNIVERSITY MEDICAL COLLEGE #3 HOSPITALPEKING UNIVERSITY MEDICAL COLLEGE #3 HOSPITAL
– RIZHAO CITY PEOPLE’S HOSPITAL RIZHAO CITY PEOPLE’S HOSPITAL
EXAMPLES OF HELPING CLIENTS FROM OTHER LOCATIONS TO BRING THEIR EXAMPLES OF HELPING CLIENTS FROM OTHER LOCATIONS TO BRING THEIR SKILLS TO MAINLAND CHINA SKILLS TO MAINLAND CHINA
– HONG KONG HOSPITAL AUTHORITY HONG KONG HOSPITAL AUTHORITY
– MICROSOFTMICROSOFT
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 7 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
DORENFEST EDUCATION IN CHINA – TONGREN HOSPITAL, BEIJING 2005DORENFEST EDUCATION IN CHINA – TONGREN HOSPITAL, BEIJING 2005
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 8 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
DORENFEST EDUCATION IN CHINA – ZHEJIANG MEDICAL ASSOCIATION 2009DORENFEST EDUCATION IN CHINA – ZHEJIANG MEDICAL ASSOCIATION 2009
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 9 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
A FEW HIGHLIGHTS A FEW HIGHLIGHTS ABOUT HEALTHCARE IN CHINAABOUT HEALTHCARE IN CHINA
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 10 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP10
CHINA HEALTHCARE EXPENDITURES WILL GROW RAPIDLYCHINA HEALTHCARE EXPENDITURES WILL GROW RAPIDLY($ AND RMB IN BILLIONS)($ AND RMB IN BILLIONS)
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1990 1995 2000 2002 2003 2004 2005 2006 2007 2010
GovernmentGovernment
Social InsuranceSocial Insurance
Out-of-pocketOut-of-pocket
SOURCE: MINISTRY OF HEALTH ANNUAL STATISTICS YEARBOOKSOURCE: MINISTRY OF HEALTH ANNUAL STATISTICS YEARBOOK
RMB inRMB in
BillionsBillions
13.8%13.8% 15.2%15.2% 14.1%14.1% 13.6%13.6%
Annual Growth Rate Annual Growth Rate
14.6%14.6%
75 RMB75 RMB
($9.6)($9.6)
216 RMB216 RMB
($27.8)($27.8)
459 RMB459 RMB
($59.1)($59.1)
579 RMB579 RMB
($74.7)($74.7)
659 RMB659 RMB
($84.9 ($84.9 ))
759 RMB759 RMB
($97.0) ($97.0)
984 RMB984 RMB
($144.0 ) ($144.0 ) 866 RMB866 RMB
($126.7 ) ($126.7 )
1128 RMB1128 RMB
($165.0) ($165.0)
Forecasted GrowthForecasted GrowthRate – 15% in 2008 and Rate – 15% in 2008 and 20% in 2009 and 201020% in 2009 and 2010
1900 RMB1900 RMB($275.0)($275.0)
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 11 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
AVERAGE MEDICAL EXPENSE PER OUTPATIENT HOSPITAL VISIT ($ AND RMB)AVERAGE MEDICAL EXPENSE PER OUTPATIENT HOSPITAL VISIT ($ AND RMB)
0
25
50
75
100
125
150
175
1995 2000 2004 2005 2006 2007
DrugDrug
Exam/TestExam/Test
Medical ServicesMedical Services
40 RMB40 RMB
($5.8 )($5.8 )
86 RMB86 RMB ($12.6) ($12.6)
118 RMB118 RMB ($17.3)($17.3)
127 RMB127 RMB ($18.6)($18.6)
129 RMB129 RMB ($18.8)($18.8)
136 RMB136 RMB($19.9)($19.9)
RMBRMB
SOURCE: MINISTRY OF HEALTH ANNUAL STATISTICS YEARBOOKSOURCE: MINISTRY OF HEALTH ANNUAL STATISTICS YEARBOOK
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 12 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
PKU3 HOSPITAL OUTPATIENT CLINIC REGISTRATION AT 7:00 AMPKU3 HOSPITAL OUTPATIENT CLINIC REGISTRATION AT 7:00 AM
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 13 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
THE OUTPATIENT HEALTH RECORD WHICH PATIENT KEEPSTHE OUTPATIENT HEALTH RECORD WHICH PATIENT KEEPS
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 14 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
CHALLENGES OF THE CHINESE HEALTHCARE SYSTEMCHALLENGES OF THE CHINESE HEALTHCARE SYSTEM
1.1. ALMOST 60% OF HEALTHCARE COSTS ARE PAID DIRECTLY BY PATIENTS OUT OF ALMOST 60% OF HEALTHCARE COSTS ARE PAID DIRECTLY BY PATIENTS OUT OF THEIR POCKETTHEIR POCKET
2.2. ACCESS TO HEALTHCARE FOR THE POOR HAS BEEN LIMITED, BUT NOW CHANGINGACCESS TO HEALTHCARE FOR THE POOR HAS BEEN LIMITED, BUT NOW CHANGING
3.3. THE MIDDLE AND UPPER CLASSES ARE DISSATISFIED WITH HEALTHCARE THE MIDDLE AND UPPER CLASSES ARE DISSATISFIED WITH HEALTHCARE SERVICES SERVICES
4.4. DOCTOR INCOME EARNING METHODS WEAKEN THE DOCTOR-PATIENT DOCTOR INCOME EARNING METHODS WEAKEN THE DOCTOR-PATIENT RELATIONSHIPRELATIONSHIP
5.5. DRUGS AND TESTS FUND TOO MUCH OF THE HEALTHCARE SYSTEM DRUGS AND TESTS FUND TOO MUCH OF THE HEALTHCARE SYSTEM
6.6. HOSPITALS NEED TO EARN PROFITS TO SUPPORT THEMSELVESHOSPITALS NEED TO EARN PROFITS TO SUPPORT THEMSELVES
7.7. PRIMARY CARE IS JUST BEGINNING TO SEPARATE FROM HOSPITALS TO NEWLY-PRIMARY CARE IS JUST BEGINNING TO SEPARATE FROM HOSPITALS TO NEWLY-DEVELOPED COMMUNITY CLINICSDEVELOPED COMMUNITY CLINICS
8.8. HEALTHCARE SYSTEM CHANGES WILL CAUSE HEALTHCARE COSTS TO RISE MORE HEALTHCARE SYSTEM CHANGES WILL CAUSE HEALTHCARE COSTS TO RISE MORE RAPIDLYRAPIDLY
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 15 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
SOME HIGHLIGHTSSOME HIGHLIGHTSABOUT H.I.T. IN CHINAABOUT H.I.T. IN CHINA
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 16 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
U.S. HOSPITALS LED THE WORLD INTO H.I.T. IN THE 1960s AND SOUGHT AN U.S. HOSPITALS LED THE WORLD INTO H.I.T. IN THE 1960s AND SOUGHT AN EHR THROUGH FOUR GENERATIONS OF I.T. SYSTEMSEHR THROUGH FOUR GENERATIONS OF I.T. SYSTEMS
FINANCE SYSTEMS (LATE 1960s and 1970s)FINANCE SYSTEMS (LATE 1960s and 1970s)
LIMITED CLINICAL SYSTEMS (LATE 1970s AND 1980s)LIMITED CLINICAL SYSTEMS (LATE 1970s AND 1980s)
MORE ADVANCED CLINICAL SYSTEMS (1990s)MORE ADVANCED CLINICAL SYSTEMS (1990s)
ELECTRONIC HEALTH RECORDS (2000s)ELECTRONIC HEALTH RECORDS (2000s)
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 17 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
THE DEVELOPMENT OF H.I.T. IN CHINA THE DEVELOPMENT OF H.I.T. IN CHINA
CHINA BEGAN TO COMPUTERIZE ITS HOSPITALS IN THE EARLY 90’SCHINA BEGAN TO COMPUTERIZE ITS HOSPITALS IN THE EARLY 90’S
INITIALLY PROGRESS WAS SLOW, WITH A FOCUS ON FINANCIAL SYSTEMSINITIALLY PROGRESS WAS SLOW, WITH A FOCUS ON FINANCIAL SYSTEMS
IN THE EARLY 2000’S, CHINESE HOSPITALS BEGAN TO IMPLEMENT I.T. FOR IN THE EARLY 2000’S, CHINESE HOSPITALS BEGAN TO IMPLEMENT I.T. FOR CLINICAL SYSTEMSCLINICAL SYSTEMS
MANY SOFTWARE SOLUTIONS AVAILABLE, WITH SEVERAL HUNDRED SMALLER MANY SOFTWARE SOLUTIONS AVAILABLE, WITH SEVERAL HUNDRED SMALLER SOFTWARE COMPANIES EMERGINGSOFTWARE COMPANIES EMERGING
IN 2005, CHINA SPENT LESS THAN 1% OF TOTAL HEALTHCARE COSTS ON I.T. OR IN 2005, CHINA SPENT LESS THAN 1% OF TOTAL HEALTHCARE COSTS ON I.T. OR ABOUT $600 MILLION (USD)ABOUT $600 MILLION (USD)
IN 2007, CHINA SPENT OVER $1 BILLION (USD) ON H.I.T.IN 2007, CHINA SPENT OVER $1 BILLION (USD) ON H.I.T.
GROWTH IN H.I.T. INVESTMENT IS EXPECTED TO ACCELERATE, RISING TO GROWTH IN H.I.T. INVESTMENT IS EXPECTED TO ACCELERATE, RISING TO ALMOST $3 BILLION USD IN 2010 ALMOST $3 BILLION USD IN 2010
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 18 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
FACTORS CONTRIBUTING TO FUTURE SPENDING GROWTH IN CHINA H.I.T.FACTORS CONTRIBUTING TO FUTURE SPENDING GROWTH IN CHINA H.I.T.
1.1. CHINA HOSPITAL WORK PROCESSES ARE REDUNDANT, EXPENSIVE, AND ERROR-CHINA HOSPITAL WORK PROCESSES ARE REDUNDANT, EXPENSIVE, AND ERROR-PRONEPRONE
2.2. THE MINISTRY OF HEALTH (MOH) GUIDELINES FOR HEALTH I.T. DEVELOPMENT THE MINISTRY OF HEALTH (MOH) GUIDELINES FOR HEALTH I.T. DEVELOPMENT CALL FOR ALL CITIES IN CHINA TO HAVE REGIONAL HEALTH NETWORKS AND CALL FOR ALL CITIES IN CHINA TO HAVE REGIONAL HEALTH NETWORKS AND ELECTRONIC MEDICAL RECORDS AUTOMATED BETWEEN 2003 AND 2010ELECTRONIC MEDICAL RECORDS AUTOMATED BETWEEN 2003 AND 2010
PROVIDED MUCH MOMENTUMPROVIDED MUCH MOMENTUM
NOT MUCH SUCCESS TO DATENOT MUCH SUCCESS TO DATE
HEALTHCARE REFORM INCREASED INVESTMENT AND MOMENTUMHEALTHCARE REFORM INCREASED INVESTMENT AND MOMENTUM
3.3. CHINESE HOSPITAL LEADERS WANT TO TAKE A BIG LEAP FORWARD IN IMPROVING CHINESE HOSPITAL LEADERS WANT TO TAKE A BIG LEAP FORWARD IN IMPROVING WORK PROCESSES AND IN DIGITIZING CHINESE HOSPITALSWORK PROCESSES AND IN DIGITIZING CHINESE HOSPITALS
4.4. IMPROVED USE OF I.T. IS ONE OF 8 PILLARS OF THE NEW CHINA HEALTHCARE IMPROVED USE OF I.T. IS ONE OF 8 PILLARS OF THE NEW CHINA HEALTHCARE REFORM PLAN. FOCUSES INCLUDE: REFORM PLAN. FOCUSES INCLUDE:
ELECTRONIC HEALTH RECORDSELECTRONIC HEALTH RECORDS
DATA SHARING THROUGH REGIONAL HEALTH NETWORKSDATA SHARING THROUGH REGIONAL HEALTH NETWORKS
IMPROVED HOSPITAL I.T. SYSTEMSIMPROVED HOSPITAL I.T. SYSTEMS
I.T. SYSTEMS TO SUPPORT HEALTH INSURANCEI.T. SYSTEMS TO SUPPORT HEALTH INSURANCE
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 19 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
FACTORS IMPEDING SUCCESS IN CHINA H.I.T.FACTORS IMPEDING SUCCESS IN CHINA H.I.T.
1.1. CHINESE HOSPITALS HAVE INVESTED TOO LITTLE IN I.T. SYSTEMS AND I.T. CHINESE HOSPITALS HAVE INVESTED TOO LITTLE IN I.T. SYSTEMS AND I.T. INFRASTRUCTUREINFRASTRUCTURE
2.2. SOFTWARE PRODUCTS AND INTEGRATION TOOLS ARE NOT GOOD ENOUGH SOFTWARE PRODUCTS AND INTEGRATION TOOLS ARE NOT GOOD ENOUGH
3.3. INEXPERIENCE IN SOFTWARE BUYING RESULTS IN BAD BUYING DECISIONS INEXPERIENCE IN SOFTWARE BUYING RESULTS IN BAD BUYING DECISIONS AND POOR IMPLEMENTATIONAND POOR IMPLEMENTATION
4.4. THIS HAS RESULTED IN NEW I.T. SYSTEMS, OFTEN ADDING WORK AND THIS HAS RESULTED IN NEW I.T. SYSTEMS, OFTEN ADDING WORK AND CREATING UNNECESSARILY REDUNDANT WORK PROCESSESCREATING UNNECESSARILY REDUNDANT WORK PROCESSES
5.5. HOSPITAL LEADERS, NOT KNOWING WHAT THEY DO NOT KNOW, CONTINUE TO HOSPITAL LEADERS, NOT KNOWING WHAT THEY DO NOT KNOW, CONTINUE TO USE POOR BUYING AND IMPLEMENTATION APPROACHES BECAUSE THEY DO USE POOR BUYING AND IMPLEMENTATION APPROACHES BECAUSE THEY DO NOT KNOW BETTER WAYS ARE POSSIBLE, AND THERE IS A STRONG NOT KNOW BETTER WAYS ARE POSSIBLE, AND THERE IS A STRONG MOMENTUM TO CONTINUE WITH THESE APPROACHES MOMENTUM TO CONTINUE WITH THESE APPROACHES
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 20 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
THE COMPETITIVE ENVIRONMENTTHE COMPETITIVE ENVIRONMENT
1.1. THERE ARE HUNDREDS OF SMALL SOFTWARE VENDORS ACTIVE IN CHINA H.I.T. THERE ARE HUNDREDS OF SMALL SOFTWARE VENDORS ACTIVE IN CHINA H.I.T.
2.2. THE MARKET SEGMENTS WITH THE MOST VENDORS ARE EMR, H.I.S., PACS, THE MARKET SEGMENTS WITH THE MOST VENDORS ARE EMR, H.I.S., PACS, R.I.S., AND LABR.I.S., AND LAB
3.3. ALL H.I.T. VENDORS IN THE MARKET STARTED IN A CITY AND MOST ARE STILL ALL H.I.T. VENDORS IN THE MARKET STARTED IN A CITY AND MOST ARE STILL OPERATING IN THAT CITY OR A SMALL REGION AROUND THE CITY. SOME H.I.T. OPERATING IN THAT CITY OR A SMALL REGION AROUND THE CITY. SOME H.I.T. VENDORS ARE BEGINNING TO BECOME MORE NATIONAL IN SCOPEVENDORS ARE BEGINNING TO BECOME MORE NATIONAL IN SCOPE
4.4. MANY VENDORS IN THE H.I.S. MARKET OFFER HEAVILY CUSTOMIZED MANY VENDORS IN THE H.I.S. MARKET OFFER HEAVILY CUSTOMIZED SOLUTIONS RATHER THAN STANDARD SOLUTIONS. THESE CUSTOMIZED SOLUTIONS RATHER THAN STANDARD SOLUTIONS. THESE CUSTOMIZED SOLUTIONS CREATE GREATER DEPENDENCY ON THE VENDOR AND ARE MORE SOLUTIONS CREATE GREATER DEPENDENCY ON THE VENDOR AND ARE MORE DIFFICULT/EXPENSIVE TO KEEP CURRENT AS VENDORS PERIODICALLY DIFFICULT/EXPENSIVE TO KEEP CURRENT AS VENDORS PERIODICALLY RELEASE UPDATESRELEASE UPDATES
5.5. CHINESE HOSPITAL LEADERS WOULD LIKE TO SEE A NEW GENERATION OF CHINESE HOSPITAL LEADERS WOULD LIKE TO SEE A NEW GENERATION OF H.I.T. SOFTWARE DEVELOPED FOR THE COUNTRY TO ASSIST IN HELPING THEM H.I.T. SOFTWARE DEVELOPED FOR THE COUNTRY TO ASSIST IN HELPING THEM ACCOMPLISH THEIR “LEAPFROG” OBJECTIVES ACCOMPLISH THEIR “LEAPFROG” OBJECTIVES
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 21 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
EXPECTED EVOLUTION OF H.I.T. IN CHINA EXPECTED EVOLUTION OF H.I.T. IN CHINA
1.1. IMPROVED BUYING AND IMPLEMENTATION OF I.T. SOFTWARE WITH MORE USER IMPROVED BUYING AND IMPLEMENTATION OF I.T. SOFTWARE WITH MORE USER INVOLVEMENTINVOLVEMENT
2.2. BETTER USE OF I.T. TO SUPPORT HOSPITAL MANAGEMENTBETTER USE OF I.T. TO SUPPORT HOSPITAL MANAGEMENT
3.3. BETTER USE OF I.T. IN CLINICAL SERVICESBETTER USE OF I.T. IN CLINICAL SERVICES
4.4. DIGITAL HOSPITALS WITH ELECTRONIC HEALTH RECORDS WILL EVOLVE WITH DIGITAL HOSPITALS WITH ELECTRONIC HEALTH RECORDS WILL EVOLVE WITH GREATER FREQUENCYGREATER FREQUENCY
5.5. BETTER SYSTEMS INTEGRATION AND MORE STANDARDS TO SUPPORT I.T. BETTER SYSTEMS INTEGRATION AND MORE STANDARDS TO SUPPORT I.T. PROGRESS AND THE USE OF MULTIPLE VENDORS IN THE I.T. ENVIRONMENTPROGRESS AND THE USE OF MULTIPLE VENDORS IN THE I.T. ENVIRONMENT
6.6. REGIONAL HEALTH NETWORKS WILL EVOLVEREGIONAL HEALTH NETWORKS WILL EVOLVE
7.7. CHINA’S GOAL IS TO LEAPFROG THE WORLD IN H.I.T. ACCOMPLISHMENTCHINA’S GOAL IS TO LEAPFROG THE WORLD IN H.I.T. ACCOMPLISHMENT
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 22 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
WESTERN COMPANIES IN CHINA HEALTHCARE WESTERN COMPANIES IN CHINA HEALTHCARE
1.1. MANY WESTERN COMPANIES OPERATE IN THE PHARMACEUTICAL, MEDICAL MANY WESTERN COMPANIES OPERATE IN THE PHARMACEUTICAL, MEDICAL DEVICE, AND MEDICAL IMAGING SEGMENTS OF CHINESE HEALTHCAREDEVICE, AND MEDICAL IMAGING SEGMENTS OF CHINESE HEALTHCARE
2.2. MULTINATIONAL TECHNOLOGY COMPANIES OPERATING IN CHINA, SUCH AS IBM, MULTINATIONAL TECHNOLOGY COMPANIES OPERATING IN CHINA, SUCH AS IBM, HEWLETT PACKARD, CISCO, MICROSOFT, AND INTEL, HAVE BUSINESS IN HEWLETT PACKARD, CISCO, MICROSOFT, AND INTEL, HAVE BUSINESS IN HEALTHCARE HEALTHCARE
3.3. UNTIL RECENTLY, THE CHINA H.I.T. MARKET DID NOT LOOK LIKE AN UNTIL RECENTLY, THE CHINA H.I.T. MARKET DID NOT LOOK LIKE AN OPPORTUNITY AREA FOR WESTERN COMPANIESOPPORTUNITY AREA FOR WESTERN COMPANIES
4.4. WHILE ALMOST ALL SOFTWARE IN CHINA IS PROVIDED BY CHINESE WHILE ALMOST ALL SOFTWARE IN CHINA IS PROVIDED BY CHINESE COMPANIES, THE EXPECTED GROWTH IN CHINA H.I.T. MARKET AND LACK OF COMPANIES, THE EXPECTED GROWTH IN CHINA H.I.T. MARKET AND LACK OF GOOD APPLICATION SOLUTIONS ARE MOTIVATING MANY WESTERN COMPANIES GOOD APPLICATION SOLUTIONS ARE MOTIVATING MANY WESTERN COMPANIES TO LOOK AT THE CHINA H.I.T. MARKET AS A MAJOR OPPORTUNITY TO LOOK AT THE CHINA H.I.T. MARKET AS A MAJOR OPPORTUNITY
5.5. THE U.S. TRADE AND DEVELOPMENT AGENCY (TDA) IS FUNDING A BIG PROJECT THE U.S. TRADE AND DEVELOPMENT AGENCY (TDA) IS FUNDING A BIG PROJECT FOR THE SICHUAN PROVINCIAL HEALTH BUREAUFOR THE SICHUAN PROVINCIAL HEALTH BUREAU
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 23 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
OPPORTUNITIES ARE EMERGING FOR WESTERN COMPANIES IN CHINA H.I.T. OPPORTUNITIES ARE EMERGING FOR WESTERN COMPANIES IN CHINA H.I.T.
1.1. CHINA’S SPENDING ON HEALTHCARE AND H.I.T. IS GROWING RAPIDLY CHINA’S SPENDING ON HEALTHCARE AND H.I.T. IS GROWING RAPIDLY
2.2. PAST INVESTMENTS IN H.I.T. HAS RESULTED IN A GREAT DEAL OF PAST INVESTMENTS IN H.I.T. HAS RESULTED IN A GREAT DEAL OF DISSATISFACTION WITH APPLICATION SOLUTIONS NOW AVAILABLE IN CHINA DISSATISFACTION WITH APPLICATION SOLUTIONS NOW AVAILABLE IN CHINA
3.3. A NEW GENERATION OF H.I.T. PRODUCT SOLUTIONS IS FELT TO BE NEEDED BY A NEW GENERATION OF H.I.T. PRODUCT SOLUTIONS IS FELT TO BE NEEDED BY HEALTHCARE LEADERS IN CHINA HEALTHCARE LEADERS IN CHINA
4.4. BETTER CHANGE MANAGEMENT SKILL AND EXPERIENCE IS AN EVEN GREATER BETTER CHANGE MANAGEMENT SKILL AND EXPERIENCE IS AN EVEN GREATER NEED, BUT THIS NEED IS LESS EVIDENT TO CHINESE HEALTHCARE LEADERS NEED, BUT THIS NEED IS LESS EVIDENT TO CHINESE HEALTHCARE LEADERS AT THE PRESENT TIME AT THE PRESENT TIME
5.5. WESTERN EXPERIENCE IS WELCOMED BY CHINESE HOSPITAL AND HEALTH WESTERN EXPERIENCE IS WELCOMED BY CHINESE HOSPITAL AND HEALTH BUREAU LEADERS BUREAU LEADERS AS THEY MOVE FORWARD TO ACCOMPLISH THEIR H.I.T. AS THEY MOVE FORWARD TO ACCOMPLISH THEIR H.I.T. AND WORK PROCESS IMPROVEMENT OBJECTIVESAND WORK PROCESS IMPROVEMENT OBJECTIVES
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 24 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
CHALLENGES FOR WESTERN COMPANIES IN CHINA H.I.T. CHALLENGES FOR WESTERN COMPANIES IN CHINA H.I.T.
1.1. IT HAS TAKEN MANY YEARS FOR IBM, HEWLETT PACKARD, GE, AND SIEMENS TO IT HAS TAKEN MANY YEARS FOR IBM, HEWLETT PACKARD, GE, AND SIEMENS TO ESTABLISH POSITIONS IN THE CHINA H.I.T. MARKET ESTABLISH POSITIONS IN THE CHINA H.I.T. MARKET
2.2. MANY OTHER WESTERN COMPANIES HAVE STUDIED OR ENTERED THE CHINA H.I.T. MANY OTHER WESTERN COMPANIES HAVE STUDIED OR ENTERED THE CHINA H.I.T. MARKET FOR BRIEF PERIODSMARKET FOR BRIEF PERIODS
3.3. DIFFICULTIES FOR WESTERN COMPANIES INCLUDE THE FOLLOWING:DIFFICULTIES FOR WESTERN COMPANIES INCLUDE THE FOLLOWING:
WESTERN PRODUCTS DO NOT FIT CHINA WORK PROCESSES, WESTERN PRODUCTS DO NOT FIT CHINA WORK PROCESSES, BUT WESTERN BUT WESTERN COMPANIES DO NOT FULLY UNDERSTAND THE CHANGES THAT MUST BE MADE COMPANIES DO NOT FULLY UNDERSTAND THE CHANGES THAT MUST BE MADE
WESTERN PRICES FOR SOFTWARE PRODUCTS ARE TOO HIGH FOR CHINESE WESTERN PRICES FOR SOFTWARE PRODUCTS ARE TOO HIGH FOR CHINESE HOSPITALSHOSPITALS
CHINA IS A VERY DIFFERENT MARKET THAN MOST OTHER COUNTRIES, AND THE CHINA IS A VERY DIFFERENT MARKET THAN MOST OTHER COUNTRIES, AND THE DIFFICULTIES ARE NOT FULLY RECOGNIZED. THERE ARE PITFALLS AND WESTERN DIFFICULTIES ARE NOT FULLY RECOGNIZED. THERE ARE PITFALLS AND WESTERN COMPANIES MAKE MANY MISTAKES DURING THEIR LEARNING PERIOD COMPANIES MAKE MANY MISTAKES DURING THEIR LEARNING PERIOD
THE CHINESE ARE VERY SELECTIVE WHEN SPENDING MONEY, SO WESTERNERS THE CHINESE ARE VERY SELECTIVE WHEN SPENDING MONEY, SO WESTERNERS MUST PROVE THEMSELVES THROUGH PERFORMANCEMUST PROVE THEMSELVES THROUGH PERFORMANCE
WHARTON CHINA BUSINESS FORUMWHARTON CHINA BUSINESS FORUM 25 THE DORENFEST CHINA HEALTHCARE GROUPTHE DORENFEST CHINA HEALTHCARE GROUP
THANK YOUTHANK YOUQuestions?Questions?
FOR MORE INFORMATION CONTACT:FOR MORE INFORMATION CONTACT:
SHELDON I. DORENFESTSHELDON I. DORENFEST
THE DORENFEST GROUPTHE DORENFEST GROUP THE DORENFEST CHINATHE DORENFEST CHINA
NBC TOWER, SUITE 2725NBC TOWER, SUITE 2725 HEALTHCARE GROUPHEALTHCARE GROUP
455 N. CITYFRONT PLAZA DRIVE455 N. CITYFRONT PLAZA DRIVE RENMIN ROAD NO. 988RENMIN ROAD NO. 988
CHICAGO, IL 60611-5555CHICAGO, IL 60611-5555 JINGTIANDI INTERNATIONAL TOWERJINGTIANDI INTERNATIONAL TOWER
UNITED STATES OF AMERICAUNITED STATES OF AMERICA SUITE 908SUITE 908
PHONE: 312-464-3000PHONE: 312-464-3000 SHANGHAI, CHINASHANGHAI, CHINA
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