Mao Zedong used barefoot doctors to dispense healthcare in China in the 1960s. Some patients who think standards have risen little since use Ping An Good Doctor. This provides consultations via apps and artificial intelligence. On Friday, the tech group priced its initial public offering at the top end of its price range for a $7.5bn valuation.
Hong Kong’s retail investors are bullish on anything with a tech tag. Moreover, Good Doctor is targeting a real unmet need. Some flesh-and-blood Chinese physicians are not very good at all. Most are underpaid and vulnerable to bribery in return for prescribing particular drugs. Occasionally, one is murdered by a disgruntled patient.
The 900 medics who work for Good Doctor, an offshoot of insurer Ping An, reach millions of patients. Ambitious scale means Good Doctor has a high cash burn. The group’s 2017 loss was more than half its revenue.