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[News] Regional Revitalization with Shared Economy - China-
China is actively utilizing its shared economic model at the government level to revitalize the regional economy. The shared economy in China has an average annual growth rate of 40 percent, and the Chinese government also plans to expand the value-added shared economy to 20 percent of GDP by 2025. In particular, support measures for the development of a shared economy at the local government level are actively being sought because the shared economy will upgrade the traditional industrial structure and provide job opportunities in the service sector. The development of a shared economy is favorable to job creation for urbanization, which is in line with the emerging urbanization policy centered on the development of regional hub cities pushed by the Chinese government as it shows higher job elasticity compared to traditional industrial sectors.
<Tujia Homepage>
Indeed, the revitalization of the local economy is showing an effect of revitalizing the local economy as start-ups of shared economy service companies are activated in various areas such as transportation, accommodation, living services, health care and finance. A case in which the shared economic model contributed to revitalizing the local economy in China is the shared accommodation reservation service Tujia, which mitigates the problem of the real estate market supply and demand in the Sanya area. In the case of this area, the real estate market was in a highly inadequate situation due to over-investment, with the real estate vacancy rate built by outsiders on the shore for investment exceeding 80 percent in 2008. As such problems persisted until 2016, Tujia, a reservation service for shared accommodation, saw market opportunities and directly planned and operated B2P-based services that rent houses to customers that were jointly built with real estate investors or commissioned by owners, increasing the operating rate of houses and generating profits. Tujia has taken over another Chinese shared lodging platform, Maizong, which mainly links personal transactions (P2P), to boost tourism and accommodation rental in the region. This has led to higher returns on real estate investment, which has also had a positive impact on the revitalization of the real estate market and the tourism industry, contributing to the development of the local economy.
Among the cases of revitalizing the local economy utilizing China's shared economy, the shared economic model in the medical sector can be looked at. China has established a state-level medical health network that can reach the point of development through various policies, including training of both nursing and medical personnel in the planned economic era, but the medical system in these areas has collapsed since the reform and opening. The planned economic system based on rationing was discontinued in the 1990s, particularly in the late 1990s, when a unit of state-owned enterprises disbanded and did not provide medical services, forcing individuals to purchase medical services on their own in the market. In fact, basic medical health institutions were absolutely lacking at the time and even these were mainly concentrated in urban areas, making it difficult for underdeveloped areas to access medical services. China's public hospitals were burdened by low medical rates, which often cost doctors more than they could afford, and the hospital's profits from selling drugs accounted for a large portion of their profits.
An example of a shared economy in the medical sector is the shared medical knowledge platform in the city of Sanming. In China, in particular, local governments had the task of increasing insufficient health care services but also tackling the financial pinch of local health insurance, which is facing a growing deficit due to the aging population. Sanming's widening deficit in health insurance, as a case in point, has allowed local governments to increase their medical staff's income by standardizing drug prices and medical treatment adjustments and disclosing procedures for registering public health hospitals, while improving efficiency to return the health insurance balance to the black. Shared medical knowledge platforms played an important role in this process.
Zhenkang Shanming built an online platform in 2012 with the reform of the medical system in Sanming City. In particular, the integration of the home page of the Yeongdo Small Board Office for Medical System Reform in Sanming, the health information management platform during the construction of Shanming, and the medical records of residents and dependents were provided to individuals and medical institutions through a shared medical platform, and the number of pharmacists and numbers were provided. In addition, health care consulting and home care services were also possible through telemedicine, as well as promoting policies for medical reform. The Chinese government has been building a system that actively allows the development of platforms for telemedicine or online medical services, so the medical knowledge sharing platform has been able to play a big role. Opinions on the promotion of telemedicine services by medical institutions at the National Hygiene Planning Commission (国家卫生计划委员会) allow telemedicine services between "doctors-patients" as well as between "doctors-to-do" and provided an institutional environment for remote management of chronic diseases. The use of shared platforms in medical knowledge has allowed doctors and hospitals to enjoy promotional effects instead of providing medical advice, and patients to receive medical services through transparent procedures. In particular, the severity of the disease was diagnosed through an online service platform, which effectively allocated medical resources and reduced expenditure on health insurance. Meanwhile, tests of shared platforms for medical resources are being conducted around urban areas in China.
Hangzhou City constructed a 22-story Medical Mall after obtaining approval from the Municipal Health Planning Commission in 2017 for the establishment of a pilot unit for the National Medical Mall. Medical facilities are located on the ninth to 22nd floors of the building, which can be rented out and used for medical treatment by individual doctors on the shared medical platform. Individuals can operate their own hospitals separately, reducing fixed costs and earning high profits by using facilities located in medical malls, although they are not equipped in private hospitals under separate agreement with patients. In a similar case, Penguin Hospital in Guangdong Province can take a look at a shared platform for medical resources built together by Tencent and the doctors's Association. Here, the first-phase care utilizes the hospital of individual doctors, the second-phase care runs through a coalition of individual doctors, and the third-phase care, which requires expensive diagnostic equipment and medical procedures, shares the resources of the Penguin Hospital invested by companies.
In addition, in Guangzhou, a Dai-Fai shared medical platform was created in 2017 with a group of some 500 doctors. It has been providing night care services online since 2018 and will also provide emergency evacuation of patients linked to local taxi associations. Not only does this medical resource sharing system increase the medical supply by lowering the start-up costs of individual medical personnel, but it also improves the profitability of capital by preventing overlapping investments and enables efficient allocation of resources to solve chronic shortage of medical resources in China and boost the local economy.
China is actively utilizing its shared economic model at the government level to revitalize the regional economy. The shared economy in China has an average annual growth rate of 40 percent, and the Chinese government also plans to expand the value-added shared economy to 20 percent of GDP by 2025. In particular, support measures for the development of a shared economy at the local government level are actively being sought because the shared economy will upgrade the traditional industrial structure and provide job opportunities in the service sector. The development of a shared economy is favorable to job creation for urbanization, which is in line with the emerging urbanization policy centered on the development of regional hub cities pushed by the Chinese government as it shows higher job elasticity compared to traditional industrial sectors.
<Tujia Homepage>
Indeed, the revitalization of the local economy is showing an effect of revitalizing the local economy as start-ups of shared economy service companies are activated in various areas such as transportation, accommodation, living services, health care and finance. A case in which the shared economic model contributed to revitalizing the local economy in China is the shared accommodation reservation service Tujia, which mitigates the problem of the real estate market supply and demand in the Sanya area. In the case of this area, the real estate market was in a highly inadequate situation due to over-investment, with the real estate vacancy rate built by outsiders on the shore for investment exceeding 80 percent in 2008. As such problems persisted until 2016, Tujia, a reservation service for shared accommodation, saw market opportunities and directly planned and operated B2P-based services that rent houses to customers that were jointly built with real estate investors or commissioned by owners, increasing the operating rate of houses and generating profits. Tujia has taken over another Chinese shared lodging platform, Maizong, which mainly links personal transactions (P2P), to boost tourism and accommodation rental in the region. This has led to higher returns on real estate investment, which has also had a positive impact on the revitalization of the real estate market and the tourism industry, contributing to the development of the local economy.
Among the cases of revitalizing the local economy utilizing China's shared economy, the shared economic model in the medical sector can be looked at. China has established a state-level medical health network that can reach the point of development through various policies, including training of both nursing and medical personnel in the planned economic era, but the medical system in these areas has collapsed since the reform and opening. The planned economic system based on rationing was discontinued in the 1990s, particularly in the late 1990s, when a unit of state-owned enterprises disbanded and did not provide medical services, forcing individuals to purchase medical services on their own in the market. In fact, basic medical health institutions were absolutely lacking at the time and even these were mainly concentrated in urban areas, making it difficult for underdeveloped areas to access medical services. China's public hospitals were burdened by low medical rates, which often cost doctors more than they could afford, and the hospital's profits from selling drugs accounted for a large portion of their profits.
An example of a shared economy in the medical sector is the shared medical knowledge platform in the city of Sanming. In China, in particular, local governments had the task of increasing insufficient health care services but also tackling the financial pinch of local health insurance, which is facing a growing deficit due to the aging population. Sanming's widening deficit in health insurance, as a case in point, has allowed local governments to increase their medical staff's income by standardizing drug prices and medical treatment adjustments and disclosing procedures for registering public health hospitals, while improving efficiency to return the health insurance balance to the black. Shared medical knowledge platforms played an important role in this process.
Zhenkang Shanming built an online platform in 2012 with the reform of the medical system in Sanming City. In particular, the integration of the home page of the Yeongdo Small Board Office for Medical System Reform in Sanming, the health information management platform during the construction of Shanming, and the medical records of residents and dependents were provided to individuals and medical institutions through a shared medical platform, and the number of pharmacists and numbers were provided. In addition, health care consulting and home care services were also possible through telemedicine, as well as promoting policies for medical reform. The Chinese government has been building a system that actively allows the development of platforms for telemedicine or online medical services, so the medical knowledge sharing platform has been able to play a big role. Opinions on the promotion of telemedicine services by medical institutions at the National Hygiene Planning Commission (国家卫生计划委员会) allow telemedicine services between "doctors-patients" as well as between "doctors-to-do" and provided an institutional environment for remote management of chronic diseases. The use of shared platforms in medical knowledge has allowed doctors and hospitals to enjoy promotional effects instead of providing medical advice, and patients to receive medical services through transparent procedures. In particular, the severity of the disease was diagnosed through an online service platform, which effectively allocated medical resources and reduced expenditure on health insurance. Meanwhile, tests of shared platforms for medical resources are being conducted around urban areas in China.
Hangzhou City constructed a 22-story Medical Mall after obtaining approval from the Municipal Health Planning Commission in 2017 for the establishment of a pilot unit for the National Medical Mall. Medical facilities are located on the ninth to 22nd floors of the building, which can be rented out and used for medical treatment by individual doctors on the shared medical platform. Individuals can operate their own hospitals separately, reducing fixed costs and earning high profits by using facilities located in medical malls, although they are not equipped in private hospitals under separate agreement with patients. In a similar case, Penguin Hospital in Guangdong Province can take a look at a shared platform for medical resources built together by Tencent and the doctors's Association. Here, the first-phase care utilizes the hospital of individual doctors, the second-phase care runs through a coalition of individual doctors, and the third-phase care, which requires expensive diagnostic equipment and medical procedures, shares the resources of the Penguin Hospital invested by companies.
In addition, in Guangzhou, a Dai-Fai shared medical platform was created in 2017 with a group of some 500 doctors. It has been providing night care services online since 2018 and will also provide emergency evacuation of patients linked to local taxi associations. Not only does this medical resource sharing system increase the medical supply by lowering the start-up costs of individual medical personnel, but it also improves the profitability of capital by preventing overlapping investments and enables efficient allocation of resources to solve chronic shortage of medical resources in China and boost the local economy.