Ali health to launch independent medical service on Alipay

Ali health has announced, that it has signed a strategic cooperation agreement with Alipay. Ali health intends to exclusively establish an independent medical health service channel on the Alipay, who will manage and operate the health industry partners on the platform. In addition, it will provide users with a more comprehensive medical and health service and products.

The cooperation is a strong alliance between three companies Ali health, Ant Financial, and Alipay in the field of medical health services. Ali health will optimize the medical service spectrum of the Alipay platform through leverage in the medical and health fields. In the meantime, Ant Financials resources will accommodate the development of Ali Health in the industry. This combination should provide users with a better quality of healthcare services.

It was in 2015, that Alibaba group changed its online pharmacy business from Small to Alihealth. The group has since created an internet-based drug distribution and sales system that covers the entire industry chain. This in turn, has enhanced the overall efficiency of the healthcare product supply chain.

Currently, in China 70% of prescribed drugs and medications are sold in hospitals, while the remainders are privately sold in clinics and pharmacies. Having such a dominant presence in the market, this has meant that hospitals control significant pricing power which led to an inflation in drug pricing for patients.

Thankfully, AliHealth aims to disrupt this powerplay and provide fair, affordable and accessible medical and healthcare services to Chinese customers. This will be done through the implementation of big data and the Internet, which will cerrtainly change the face of China’s healthcare industry.

Alibaba Health Information Technology Limited (0241.HK)

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