Kingstar Winning: From Electronic Medical Records to Integrated Healthcare in China

Kingstar Winning’s president, Zhou Wei, sought to position his company for faster growth in anticipation of a market shakeup among providers of electronic medical records (EMRs) and e-health solutions to hospitals in China. The options he was considering included expanding the company’s domestic project base, a domestic merger or acquisition, and international growth, possibly through a joint venture project with Huawei. The case describes the history and growth of Winning, contextualizes the transition from paper to electronic medical records underway in China, analyzes Winning’s approach to EMR development through “software as a service” and a “flexible R&D mode,” and evaluates specific projects at two hospitals in the Shanghai region. Financial data is provided for the company, along with market projections and additional information on the use of EMRs

Healthcare in China: Institutional Trajectories and Future Opportunities

China’s healthcare system was undergoing significant growth in the early 2010s, evidenced by expanded government-backed insurance and experiments with private clinics, hospitals, and insurance. Reforms under discussion would further restructure relations among insurers, hospitals, physicians, and patients. Policy changes also were likely to change competitive dynamics in major healthcare industries, and especially for pharmaceutical, biotechnology, and medical device and diagnostics companies. This case summarizes the institutional history of China’s healthcare system and identifies dilemmas for reform, especially in the insurance system and payment structures for hospitals and physicians. A final section analyzes opportunities for healthcare innovation and systems integration in China. The case is designed to help students learn about the Chinese healthcare system overall as well as strategic choices faced by insurance firms, hospitals, and pharmaceutical and medical device companies. It also can be used to analyze moral hazards, opportunity costs, and systems integration in healthcare more generally