1. Background of the Smart Healthcare Industry1.1 Policy as the core driving force of smart healthcare1.2 The rapid advancement of corporate compliance requirements in smart healthcare1.3 Fundraising enthusiasm in the smart healthcare remains high, with a shifting appetite toprojects that demonstrate long-term commercialization capabilities1.4 New healthcare demands accelerate the rapid iterative development of smart healthcare1.5 Emerging technologies continue to expand the boundaries of smart healthcare services2. Diversified application scenarios of smart healthcare2.1 Further deepened innovation value chain2.2 Deepening regional medical intelligence2.3 Greater emphasis on the construction of smart hospitals2.4 Rapid development of smart healthcare at home3. Challenges in the Smart Healthcare Industry3.1 Obstacles to interconnectivity within and between hospitals3.2 Limited adaptability of medical staff and patients to smart healthcare3.3 Policies and regulations for smart healthcare need to be further improved3.4 Smart healthcare services faces pricing and payment challenges4. Outlook and suggestions4.1 Establish unified standards and task Forces within Hospitals; government-led datastandardization across medical institutions4.2 Patient education via multiple channels and personalized solutions; strengthen externalcollaboration for smart technology adoption4.3 Strengthen data security barriers and clarify legal and technical standards4.4 Design reasonable, granular pricing strategies; build a diversified payment system and novelpayment mechanisms5. ConclusionContents01 02030607091012181921222424252626272728292930 1Statistical Communiqué of the People's Republic of China on the 2023 National Medical and Healthcare Development, NHC, August 2024As intelligent technologies are rapidly advancing andbeing deployed at scale, smart transformation hasbecome one of the hottest areas of investment anddevelopment across industries. In China’s life sciencesand health care industry, smart healthcare is gainingmomentum. As an upgrade to traditional healthcareinformatization, smart healthcare integrates new-generation information technologies such as 5G, cloudcomputing, big data, and artificial intelligence, driving aparadigm shift toward intelligent systems.The motivation to develop smart healthcare stemsfrom several macro-level factors. First and foremost,smart healthcare is expected to help address thelong-standing imbalance in the distribution of medicalresources across China. According to data publishedby the National Health Commission, in 2023, tertiaryhospitals make up only 10% of all hospitals nationwidebut handled 62% of outpatient visits. The outpatientvolume at tertiary hospitals has continued to growover the past decade, increased 15% from 2014,while that at secondary and lower-level hospitals hassteadily declined, falling from 45.1% in 2014 to 34.5%in 2023. This clearly demonstrates the issue of unevendistribution of medical resources.Second, with the continuous improvement ofliving standards, the public has increasingly higherexpectations for the quality, efficiency, and experienceof healthcare services. People are pursuing a morepersonalized and proactive approach to healthmanagement. As public health awareness rises,attention has gradually shifted from "diseasetreatment" to "disease prevention", accompanied bythe emergence of a growing consciousness aroundself-health management.1. Background of the SmartHealthcare Industry 021 03Figure 1: The path of aging population in ChinaFinally, changes in population structure have also generated many new medical demands. The accelerating agingof the population, for example, has led to increased demand for chronic disease management and rehabilitativecare. According to United Nations standards, China officially entered the category of a deeply aging society in2022 and is expected to become a super-aged society by 2035. The challenges posed by an aging population anddeclining birth rates have led to new medical needs, and requiring new disease management models and newlong-term care paradigms. Traditional single-mode healthcare model is no longer sufficient to meet the evolvinghealthcare demands of a transforming population structure.With that, smart healthcare, featuring convenience, efficiency, and precision, has developed rapidly. It enhancesthe efficiency of the entire healthcare value chain while offering more diverse choices for medical services. Atpresent, the growth of smart healthcare is being supported by favorable policies, funding support, emergingclinical demands, and advanced technologies.Note: the classification of aging society stage is from 1956 United Nations Classification CriteriaSource: China Development Report 2020: Trends and Policies on China's Aging Population, National Bureau of Statistics, Deloitte ResearchTo achieve more accessible and equitable healthcareservices, China has introduced multiple stages of policyinitiatives to advance t