German Hospital 4.0

Issues, Analysis and Potentials

Content summary

New round of healthcare reform opens it curtain from 2017, its target transfers from consolidating foundation and breaking through single difficulties to quality improvement, comprehensive promotion, and plan key areas reform as a whole. It is now inevitable to face up to the key problems existing in the current system and mechanism. China will accomplish the holistic upgrade of its healthcare industry strategic deployment first by 2020, the end of the 13th Five Year Plan, and then by 2030, realize “Healthy China” strategy.

  • New round of healthcarereform opens it curtain from 2017, its target transfers from consolidatingfoundation and breaking through single difficulties to quality improvement,comprehensive promotion, and plan key areas reform as a whole. It is nowinevitable to face up to the key problems existing in the current system andmechanism. China will accomplish the holistic upgrade of its healthcareindustry strategic deployment first by 2020, the end of the 13th Five Year Plan, and then by 2030, realize “Healthy China” strategy.

    Globally, healthcare reform has alwaysbeen a tough problem. Since 1990s, countries like the United States, Germany,Japan and China start to launch the healthcare reform in respective countries.However, all countries have gone through ups and downs and even intermittencesto some certain degrees due to rising healthcare expenditure and variousdifficulties in the commissioning of the new systems, and controversies alsoarouse public attention in the past over 20 years.

    Germany, like China has a socialsecurity system (public healthcare organizations play a dominant role andprivate organizations as supplement), has a relatively developed andcomprehensive social healthcare security system due to the early implementationof the social security system. The Germany system has already accomplishedsubstantial achievements especially in cost control, supervision, drug pricenegotiation, coverage range of social health insurance, free choice of publicinsurance companies, and risk compensation mechanism. The German healthcaresystem is far ahead China. As the book mentions, the establishment, implementand improvement of the Diagnose Related Groups (DRGs) system takes Germany 10 yearsand now has worked as a symbol of effectiveness and efficiency in wholeGermany. The German experience in healthcare reform can be a helping hand toChina and may help China to avoid some detours.

  • China and Germany have an increasing tie in economic, social and political development, and have realized all-around development in the past years. The 2016-2018 Action Plan jointly signed by two governments offers a healthcare policy framework for the future closer cooperation in healthcare industry. Look ahead to the future, the two countries are expecting more innovative conversations and partnerships to further explore the market potential and upgrade the whole industry from the strategic level.

    Public hospital reform, new development trends and challenges come across in Germany can be taken as a warning/early warning to the Chinese healthcare reform. Germany and China share some common but significant challenges, such as aging society, urbanization, change of disease spectrum and ecological environment, talent shortage, and unbalanced development in rural areas. All these challenges directly affect the social security system, economic development, labor market, urban and transportation development and education system. German healthcare system is under great pressure now so as to provide affordable healthcare services with high quality. Over the past 2 years, reforms have been carried on in Germany, as least have an impact on key players of the healthcare system in the short term. For example, the newly founded innovation fund will provide fund for integrated services and service content research and development. The hospital service structure reform law (hereinafter referred to as hospital structure law) has been put into forth to improve the service quality and nurses per bed in hospital. The third phase of the reform in 2017 will focus on nursing field, aiming to constantly to improve the overall situation in nursing field. Therefore, focusing on the common interests and cooperate beyond the borders will help both China and Germany to overcome challenges and seize opportunities.

  • The original German edition was first published in 2015, and the second edition has also been published with a total circulation volume of 100,000. This book provides a holistic view to in-depth understand German hospitals, and acts as a strong driving force in health economics field. 

    The Chinese edition is the first to get the authorization of translation around the globe. Recommended by the National Health and Family Planning Commission of the People’s Republic of China, coordinated by Shanghai Pinzhi Investment Management, and published by the most authorized publishing house in medical education field, People’s Medical Publishing House, German Hospital 4.0 is expected to issue 100,000 copies in the first year. It is a great honor to have German consul general Peter Rothen, Prof. Georg Milbradt, former Governor of Saxony, and officers from Chinese National Health and Family Planning Commission to write preface for the book.

    The year 2017 is an important year to boost the healthcare reform into the 13th Five Year Plan, and marks the beginning of the 2030 Healthy China strategy. The publish of the book will definitely make a great impact on Chinese health economics. 

  • The authors of the book are fromone of the world 4 most renowned accounting firms KPMG. The contentsare inspirational, comprehensive and very practical and have drawn attention oflot government officials from both China and Germany. It is a great honor tohave German consul general Peter Rothen, Prof. Georg Milbradt, former Governorof Saxony, and officers from Chinese National Health and Family PlanningCommission to write preface for the book.

    Prof. Dr. Volker Penter

    Head of Healthcare Germany and Senior Partner – KPMG Germany

    Professor Penter is the honorary Professor for international accounting at the Technical University Dresden and lecturer for Health Economics at the Dresden International University. As author of various books and publications, he is one of the most renowned industry experts in Germany. For professor Penter, what matters is to make a clear statement on complicated facts and transform scientific theories into daily activities.

    Dr. Christoph Arnold

    Director of Equity Acquisition-AMEOS Zurich

    Dr. Arnold has a master’s degree on engineering economics, and his doctoral dissertation is the Research and Development of Strategic Prediction Model of German Hospital Groups. Christoph Arnold is now responsible for the privatization of acquisition and the post-acquisition reorganization. He previously worked as a health economic auditor and consultant in the KPMG Berlin.

    Stefan Friedrich

    Partner Healthcare – KPMG Germany

    Mr. Friedrich is an expert in consultation cases in the German health and social care industry. His main focuses are hospital governance, regulation and control, hospital management and benchmarking. Stefan Friedrich is the lecturer for international healthcare systems at the Dresden International University and author and editor of numerous books and articles in the field of healthcare management.

    S?ren T. Eichhorst MD PhD

    Dr. S?ren Eichhorst is an internal medicine doctor and has a broad consulting experience in Germany and across the globe. Dr. Eichhorst is a healthcare consulting expert, and hold positions in different institutes and organizations. He is a guest lecturer of the University of Munich for hospital project management. Dr. Eichhorst is also authors of various books and publications, such as Modern Hospital Management and Hospital Daily Activities and Work Satisfaction.

  • The practical significance lies in the seamless connection of all stakeholders in their daily working environment. Different from the past avoiding the uncertainty feeling of the transformation, this book presents an irreversible result of the social evolution in the future. Instead of complaining about the status quo, based on the anamnesis, the books analyzes, verifies and summarizes the facts and practices of the hospital, and provides practical and objective action suggestions with solid evidence and figures. Each statement in the book has been empirically tested, and the interpretation of the relevant data is also easy to understand.

    This book also helps to promote academic research and international exchange. The reform itself is a wide, difficult and gradual engineering social system, in which data and information helps to efficiently find the rules and points of penetration and finally find out the fundamental direction of reform. This book is of practical significance to the construction of the relevant disciplines of hospital management, to create an academic atmosphere, and enhance international exchanges. The market environment of German hospitals varies, and there is no so-called hospital at an average level. In the increasingly complicated market environment with increasingly complicated hospital structure, several chapters of the book is based on the KPMG Database Hospital 300? benchmark analysis model to identify service gaps and abnormal cost and to discuss possibilities of internal improvement. Through the in-depth analysis of over 60 million German hospital data of structure, finance and quality, the self-inspection tool is of great significance to hospitals.

    This book also helps to strengthen the confidence of setting up the referral system. To examine the panorama of German hospitals in digital form, the existing challenges are generally applicable to the vast majority of the more than 2,000 German hospitals. Small-sized hospital tends to be more welcomed by patients and with constantly improving quality according to the individual hospital analysis. Other measures, for example, building up regional health information platform, allocating proper resources to the right place and ensure connection among healthcare providers, health insurance companies and public health prevention organization, are the key factors of improving healthcare service efficiency and accessibility of the referral system.

    This book can help to better examine and understand the healthcare industrial chain. China’s healthcare industry will definitely grow into an important incentive to the economic development. With the improvement of people’s life, problems such as healthcare and elderly care have become common concerns of people. Pharmaceutical companies, medical equipment companies, healthcare service providers, health insurers, elderly care companies, training and education organizations, internet healthcare provider, innovation and investment, every stakeholder in the industrial chain demand prompt attention. Improving efficiency, eliminating production fall behind and creating new innovation, technologies and services can fast propel the healthcare service system forward.

    Of course, there are a thousand Hamlets in a thousand people's eyes, and different people may enjoy different angles on the future pathway and scenes of German hospitals. Nevertheless, the book is absolutely necessary for those who hope to realize modernization in their companies.

  • Expert speech:

    Zhifeng Wu

    Clinical chief expert, chief physician, associate professor, master tutor of Wuxi Second People 's Hospital

    Yanling Zhang

    Chairman of Aixin Life Insurance Company Limited

    Xian Du

    Deputy director and deputy general manager of the People's Health Publishing House.

    Anmin Chen

    Anmin Chen, a Chief physician and PhD Tutor, worked for Tongji Medical College Affiliated Tongji Hospital but now works for Huazhong University of Science and Technology.

    Xin Ni

    Xin Ni is Dean of Beijing Children 's Hospital, besides he is a Chief physician, professor and PhD Tutor.

    Volker Penter

    Volker Penter is the partner and director of Department of Health Care of KPMG Audit Services AG in Germany. He is not only an auditor and a tax adviser but also works for Dresden University of Technology as Honorary Professor and Economics lecturer.

    Stefan Friedrich

    Stefan Friedrich is the partner and full agent of Health care insurance services of KPMG Audit Services AG in Germany. He offers consultation and verification to all kinds of hospitals and thus is one of the most noted experts in this field. He focuses on Hospital treatment, modern control and management and benchmarking analysis of Germany hospital economy.

    Aiping Yang

    Dean of National Health Service Capacity Building and Continuing Education Center

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