1. 1 Challenges and pitfalls to maintain revenue generating services in He Eye Care System Prof. Wei He, MD, PhD, MBA Founder and Chairman of He Eye Care System WPR Co-Chair IAPB Vice President of Chinese Ophthalmologist Association CPPCC Member (Chinese People’s Political Consultative Conference)

2. 2 HECS

3. 3 Chanllenge: Patient volume is increasing slower Chinese GDP growth declines –Local financial revenue drop –The capacity of Health Insurance decreased.

4. 4 Chinese Medical Reform Hospitals in counties and towns are enhanced by the governments -- Most of patients will first visit county hospitals; -- Renewed equipments and facilities in county and town hospitals to cover 80% diseases

5. 5 75% of medical costs reimbursement in basic-level hospitals. 45% in He Eye Hospitals. : Challenge: Chinese Health Insurance policy

6. 6 Solution 1: HECS Model Advantage HECS provides affordable, acceptable, continuous and high- quality eye service reduce the burden of patients and governments patient volume keep growing revenue increase. Pricing advantage. For Example : cataract surgery (IOL) in 2011 Name of the HospitalPrice (RMB) Eye Hospitals Shenyang He Eye Hospital5451.11 Shenyang Aier Ophthalmology6452.53 Public Hospitals The Fourth Affliated Hospital of China Medical University 6665.57 Shenjing Affiated Hospital of China Medical University 7971.93 Shenyang No. Fouth People’s Hospital9779.58

7. 7 HECS’s model is recognized and duplicated in China. COE Regional Eye Hospitals City hospitals Cataract &RE Centers County hospitals Tele-ophthalmic Clinics Eye Care System in Urban Area Traiing,Referal,Tele-medicine Traiing,Referal, Tele-medicine Eye Care System in Rural Area

8. 8 1.Telemedicine: 44 in Liaoning, 70% of the eye care market Solution 2: Cooperate with county level hospitals Benefits from:  Share patients in cooperated hospitals, increase HEH revenue;  Reduce the time and cost of transforing patients and seeing a doctor, satisfy the patients ;  Refer the patients to He Eye Hospitals, increase HEH revenue.

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10. 10 Benefits from: shorten the time and reduce medical cost of out reach activities by He eye hospital; Increased the volume of referred patients to He Eye Hospital; 30,000 grass-roots doctors in Liaoning, 30,000 cataract surgery /year. 2.Training grassroots doctors ----instead of outreach teams from HECS

11. 11 The HECS model solve eye problems in China and makes eye care affordable to all. HECS will not only gain economy benefits, but win a good reputation with enthusiastic at public welfare as well. –MOH set up the first National Training Base for the Prevention and Treatment of Blindness in China in June 2012. – The HECS model is duplicating in Taizhou City, Jiangsu Province.

12. 12 He’s University

13. 13 He’s University

14. 14 In 2012, Prof. Wei He reported to the State President, HU Jintao on He Eye Care System model

15. 15 Vice President, Jinping XI met Prof. Wei He

16. 16 Thank You