35 Leading Dental Experts Share Their Insights on China's Private Dental Sector in 2019
By Dr. He Zhou (Beijing Huajing Dental), a contributing expert to VCBeat. VCBeat has made additions and deletions without altering the original meaning.
A new wave of transformation is propelling physicians, whether voluntarily or involuntarily, into the sweeping changes reshaping the healthcare industry. The developments unfolding in the medical field today are truly exciting. Physicians are increasingly redefining their professional identity, moving beyond the confines of a single institution, region, role, or practice model, and gradually evolving into socially engaged professionals with specialized expertise.
Doctors’ horizons have broadened, with each individual seeking their own track, engaging in healthy competition to distinguish themselves through accumulated reputation and renown. The plight of unrecognized talent no longer applies to this professional community.
On the other hand, as business entities and service interfaces, dental clinics are urgently reevaluating their strategic direction: Should they remain content in their niche markets, succumb to the anxiety of becoming obsolete, or embark on a path of sustainable development? Should they strive to dominate the market independently, or pursue collaborative growth? What new opportunities will emerging changes bring? How can existing clinics cooperate and integrate with one another? The influx of social capital has diversified the economic structure and business models of private dental practices.
Private dental practitioners are undoubtedly facing a new crossroads. Often, while we wait for change, we are already in the midst of it. Everyone is involved, and clinics are no exception. Now, standing at the threshold of the New Year 2019, I have specially posed a common topic to my peers: “My View on Private Dentistry in 2019,” inviting them to share their perspectives, judgments, or predictions.
Among them are private practitioners, publicly listed clinic chains, and hospital clinics backed by major capital investors. Within two hours, I received comprehensive feedback from all of them. Their efficiency, diligence, insight, and wisdom deeply moved me. Key terms in their responses included: competition, strategic interaction, trends, strategy, value, and win-win outcomes. Their perspectives offer a glimpse into the industry’s dynamics and may serve as a valuable reference for professionals. Below, we share their viewpoints:
1. He Zhou (Founder of Huajing Dental and Huajing Elite Education):Every year, we predict that the next will be difficult, yet we must press on regardless. In 2019, some companies will inevitably fall, while others will surely rise. Speculators will falter, but value creators will stand firm. Individuals attuned to subtle trends are dedicated and conscientious professionals; they will invariably be accompanied by favorable fortunes. Just as the withering of all things paves the way for their rebirth, let us warm one another and strive together. I am proud to stand alongside you in the ranks of the private sector.
2. Ding Peng (Founder of Beijing Purimei Dental):As the year draws to a close, looking back, many people spent 2018 in a state of panic and anxiety. Despite annual complaints about a sluggish economy and a “capital winter,” the reality is that China’s technological innovation and industry opportunities have remained vibrant over the past few years, with a steady emergence of new wealthy elites.
For each individual, rather than living within the “macro-trend” of economic downturn, we are living within a series of “micro-trends” across different dimensions. The “macro-trend” reflects the collective landscape, while “micro-trends” represent an individual’s future. Acknowledge the macro-trend, but place greater faith in micro-trends. While 2018 was indeed challenging, 2019 will certainly not be as bleak as feared. Let us offer warmth to one another and move forward together.
3. Cao Zhiyi (Founder of Hangzhou Yazheng Dental):In my view, the key to success for private dental practices in 2019 lies not merely in medical expertise, but more importantly in the enhancement of clinic management and service quality.
4. Cheng Hong (Dean of Lianyungang Chenghong Stomatological Hospital, Jiangsu):2019 marked the inaugural year for China’s private dental sector to “slim down” and embark on a path of healthy development. With the equitable imposition of various compliant taxes and fees, advancements in digital and artificial intelligence technologies, and the increasing transparency and sharing of operational data, the trend toward returning to the core essence of medical care has become evident. This period represents the optimal time to engage in the management of China’s private dental industry.
5. Chen Zhongyu (Founder of Shenzhen New Century Dental):As 2018 draws to a close and 2019 approaches, amidst these busy and fulfilling days, we look ahead to the coming year. Chinese dental professionals are ushering in a new era brimming with development opportunities. First, industry restructuring and resource integration will determine the direction and pace of future growth. The widespread application of digital technologies across various dental specialties is breaking through certain bottlenecks, with correct mindsets and pathways taking shape. Advanced dental technologies in China are now on par with international standards. Domestic dental-related industries are also gaining momentum, progressing from imitation to surpassing global counterparts. Furthermore, the relatively lagging state of standardized industry regulation has been placed on the agenda for urgent attention.
6. Chen Tong (President of the Nanjing Private Stomatological Medical Association):Influenced by the broader macroeconomic environment, capital-driven and technology-driven institutions have begun to engage in fierce competition for talent and marketing. The former is undergoing a significant reshuffle; patient spending on dental care is becoming increasingly rational, and the customer base for practicing dentists is gradually stabilizing. The latter would do well to consider Ren Zhengfei’s perspective: Huawei must not underestimate the dynamic shifts in the global power structure, nor should it be blindly confident. Instead, it must transform the pressure from the external environment into a driving force for business innovation and management improvement.
7. Chen Xi (Director and Dean, Shanghai Modern Dental Group):Policies on tax cuts and fee reductions are still forthcoming, while the collection of social security contributions by tax authorities is imminent. The significant rise in operational costs is not only increasing pressure but also pushing our industry further along the path of regulatory compliance. After all, no industry can achieve healthy and robust growth by perpetually operating in a gray area.
The rise in fixed costs will help curb malicious low-price competition, blind and disorderly expansion, and the frenzied influx of speculative capital. While profit margins decline, traditional private dental practices will see a scenario of sustained revenue growth alongside steady increases in actual profits. There will inevitably be a period of painful adjustment sooner or later, but the overall trend will be more favorable than that of 2018. Mergers and acquisitions within the industry will intensify, with survival of the fittest coexisting alongside the phenomenon of bad money driving out good. The harshest winter has not yet arrived, but the faint scent of spring is already perceptible. There is no other way forward: keep your head down and work hard, while also looking up to assess the broader landscape.
8. Cheng Zheng (Founder of Beijing Tianyun Dental):2019 will be a year of both prosperity and perseverance for the private dental industry. Amidst fierce competition, the winners will undoubtedly be those who remain steadfast at the chairside.
9. Fang Yuzhu (Founder of Jiangsu Yuhui Dental):In 2018, Chinese dental enterprises focused on learning and refining the essence of business operations. Regardless of their development stage, scale, or geographic location, those that invested more effort in learning and innovation were able to gain a competitive edge and thrive amidst market dynamics. In 2019, we will continue to strengthen exchanges, promote mutual learning, broaden our horizons, and actively explore new pathways, embracing a diverse and vibrant industry landscape.
10. He Baojie (Founder of Henan Saisi Dental):In 2019, private dental practitioners in China remained true to their original mission, embraced responsibility, enhanced quality, strived for excellence, forged ahead with determination, and worked diligently for progress. We extend our best wishes for the continued prosperity of China’s private dental industry.
11. Hou Jun (General Director, Hunan Furong Dental Medical Group):In 2019, the landscape of China’s private dental sector witnessed the inaugural year of commercial health insurance in the market. This shift in payment models is poised to fundamentally disrupt the traditional consumption patterns of private dental care, gradually cultivating a new healthcare consumption paradigm centered on commercial insurance among middle- and high-income groups. Industry fee levels, particularly in the mid-to-high-end segment, are expected to decline. Private dental associations and institutions must therefore plan ahead and strategically position themselves for this transition.
The era of grassroots entrepreneurship for survival in private dental practices has come to an end; transformation, upgrading, and compliant operations are key future trends. Dentists born in the 1980s have entered a peak period of entrepreneurial activity, with their practice-establishment models and marketing strategies distinctly reflecting internet-centric thinking. Disrupting tradition will become the prevailing trend, as new models and mindsets continue to emerge. Internet-driven thinking and its corresponding business models will dominate the new generation of dental clinics.
12. Huang Huan (CEO, FDI World Dental Federation):From a developmental perspective, I believe that the private dental sector as a whole will continue to experience growth in 2019, but the rate of new dental clinic establishments will slow down significantly.
From an operational perspective, competition for talent will intensify, making the retention of skilled dentists the most critical issue for the survival and development of dental healthcare institutions. Online and offline reputation is becoming increasingly important, while the effectiveness of pure advertising campaigns is diminishing. If the economic situation remains unstable, high-end dental practices in first-tier cities will face pressure; in contrast, grassroots dental institutions in third- and fourth-tier cities are likely to be less affected and will continue their steady upward trajectory.
13. Hou Shouhu (Dean of Yantai Shunda Stomatological Hospital):In 2019, the rise of private dental practices became an inevitable trend. Safeguarding the public’s oral health and advancing the field of oral hygiene require our concerted efforts. Although the influx of capital may lead to a mixed bag of industry participants, unsustainable business models will ultimately fade into obscurity. Under the leadership of the new management team, the backbone and dedicated professionals of the private dental sector will undoubtedly make significant contributions to the grand blueprint of oral healthcare development. In 2019, by staying grounded and adapting to prevailing trends, we remain confident and composed amidst any challenges. We look forward to this future with great anticipation.
14. Ji Xinjiang (President of Shanxi Henglun Stomatological Hospital):There will not be significant changes in 2019, with an increasing number of dental clinics emerging. Large institutions are gradually adopting a more rational approach; however, many others, driven by the influx of capital and lacking full autonomy, are likely to remain focused primarily on “competition” in 2019.
15. Liu Honghu (Dean of Shanghai Honghu Dental Hospital):In 2019, the development of private dental practices in China remained challenging. Although policy-level support for opening up and bolstering the private healthcare sector was intensified, the private dental sector differs significantly from the broader healthcare industry. If government policies and measures fail to anticipate their subsequent negative impacts, they will prove detrimental to the development of private dental practices.
Low-quality advertising, cutthroat price wars, fierce competition for dental professionals, and intensified rivalry in the mid-to-high-end market will remain the dominant themes of 2019.
Dental clinics with physicians as the primary investors will face a new normal characterized by greater diversity in the dental industry. Although this may bring operational difficulties and even growing pains in the short term, anxiety and retreat should not be our options; only by courageously confronting challenges and embracing change can we uphold the highest professional standards. As the saying goes, “to forge iron, one must be strong oneself.” Only by strengthening our core competencies can we thrive and stand out in the competitive landscape.
16. Lin Huican (President of Mianyang Stomatological Hospital, Sichuan):I see no evidence that private dental practices are prepared or equipped to withstand the torrent of competition; instead, I observe only signs of their struggle amid intense rivalry. Over the next two years, small, fragmented, and disorganized dental institutions will face a wave of closures, mergers, and restructuring. Only those dental organizations that genuinely prioritize patient interests and deliver high-quality solutions will survive and thrive. A bright future for China’s private dental sector will not be imagined into existence, nor written into being, but achieved through down-to-earth, diligent execution.
17. Li Yuchao (President of the Shandong Private Dental Industry Association):In 2019, China’s private dental sector experienced steady growth, akin to sesame stalks blooming higher and higher, with provincial-level private dental associations poised for a surge in establishment.
18. Mao Yu (Practicing Physician in Seattle):In 2019, with vigorous momentum and powerful trends driving progress, private dental practices continued to develop, safeguarding the health of the public.
19. Niu Huiyan (President of Hainan Stomatological Hospital):Hainan Private Dental Care is a member of the Chinese private dental community. We extend our best wishes for the complete success and fruitful outcomes of the 2019 Beijing China Private Dental Conference.
20. Peng Guiping (President of the Macau Dental Association, practicing dentist):“Private Dental Care” is a concept with distinct Chinese characteristics. On the other side stands “Public Hospital Dental Care,” backed by government affiliation and public consumption habits. For a long time, domestic “Private Dental Care” has survived and developed under the squeeze of “Public Hospital Dental Care.” Constrained by factors such as a shortage of high-end talent and insufficient public trust, short-term profit-seeking behavior among practitioners is prevalent, further influenced by the drive of capital investment.
With the implementation of national policies allowing physicians to practice at multiple locations and the opening up of private clinic establishment, I believe the private dental sector will transition into a phase of value reversion. It will return to a stable state characterized by dentists as the primary operators and a business model focused on long-term operations and reputation building. The fervent wave of capital investment seen in recent years will gradually diverge, reverting to the industry’s original form. Experienced dentists will be willing to operate small-to-mid-sized dental clinics, cultivating a loyal patient base over time. This represents the norm for the dental industry and aligns with the broader trend of value reversion currently observed in both public and private dental sectors in China.
21. Qiu Binbin (Director of Harbin Binbin Dental Clinic):In 2019, I believe the private dental sector will remain a landscape of fierce competition and diverse growth, characterized by the coexistence of competition and development, challenges and opportunities, as well as the interplay between commercial interests and professional standards. What will be tested for every clinic is its strategic focus and original mission; what enterprises must diligently excel in are technology and service. The ultimate goal is to strengthen internal capabilities, build a strong brand, and earn customer recognition.
22. Rong Changgen (Dean of Huamei Dental Chain):In 2019, the private dental sector will shift from a capital- and market-driven model to one driven by technology and talent. Acquiring new patient flow will no longer be the top priority; instead, in-depth services for existing patients will become the mainstream. Delivering exceptional service to patients will emerge as the core competitiveness of dental chains.
23. Shan Weiwen (Director and Dean of Shanghai Modern Dental Group):Looking back on 2018, “society moved at breakneck speed, and the year was brutally harsh.” A large number of private enterprises collapsed, and the much-touted “consumption upgrade” devolved into investors becoming trapped in stocks, mutual funds, and real estate. Faced with these hardships, companies had no choice but to tighten their belts. In such times, it is not enough to merely keep one’s head down and pull the cart; one must also look up and assess the road ahead. In an era of industry reshuffling and restructuring, we cannot seek stability. Instead, we must continuously enhance our cognition and capabilities, maintain a proactive approach to learning, embrace change, and stay focused on our goals to achieve sustained growth.
24. Shi Kaolong (Founder of Guangzhou Boji Dental Chain):In my view, 2019 should be a year for the private dental sector to return to rationality and to the essence of medical care.
25. Shao Qizhang (President of the Wenzhou Dental Association):With the sustained growth of China’s economy and the continuous improvement of people’s living standards, the dental industry is shifting from a healthcare institution-centered model to a refined operational model focused on user experience. In addition to advancements in practitioners’ technical expertise and conceptual understanding, the widespread adoption and application of digital technologies—particularly 3D printing and digital scanning—are driving breakthroughs in clinical dentistry and hospital management. These developments will significantly enhance user experience and usher in transformative growth and change across the entire dental industry.
26. Wang Zhaowen (Founder of Ningbo Xiehe Dental)The dental industry has entered an era of intense fragmentation, with market segmentation set to deepen further. The crisis facing private dental practices will see a turning point, and the landscape will gradually become clearer. Large chain operators that fail to secure adequate funding will be eliminated within two to three years.
27. Wang Yuming (Director of Qingdao Yuming Dental Hospital):Constrained by a shortage of specialized talent and market demand, the expansion of private dental practices will slow down. Capital will continue to engage in snowballing and “pass-the-parcel” speculation, intensifying competition. Ultimately, success depends on internal strength; only by strengthening core competencies can players thrive in this competitive landscape.
28. Wang Hongying (Founder of Xi'an Little White Rabbit Dental):As policies continue to open up, more outstanding dentists will join the private dental sector in 2019, giving rise to various new models of collaboration. Meanwhile, competition will further intensify, posing greater challenges for dentists launching their own practices. It is foreseeable that scientifically structured shared cooperation models will become the primary approach for dentists to develop their careers.
29. Xia Xi (CEO of Chongqing Xie'er Dental):Amid the broader national economic landscape, the future prospects of the dental industry remain uncertain. Under the pressure of an overall economic downturn, every practitioner must reflect on what constitutes genuine rigid demand. Meanwhile, profit margins for high-value-added services are showing a clear downward trend. Strengthened state regulation and social oversight of the healthcare sector are inevitable. The era of wild, capital-driven expansion is coming to an end or has already passed. If business operations do not undergo fundamental changes—specifically, if the focus does not shift toward strengthening lean internal management and prioritizing medical quality and safety—then superficial adjustments will yield no real improvement, and the consequences will inevitably follow. Whether one likes it or not, the future is already here.
30. Yan Peide (Director of Shanghai Kaihong Dental Clinic):My prediction is that China’s private dental market will become further standardized in 2019, with stricter regulations on taxation, employee insurance, and government oversight. While this will increase operational costs and reduce profit margins, dentistry remains a sunrise industry in China. Overall, capital investment in mergers and acquisitions is expected to become more rational and cautious. The most stable and promising model will be the family-style clinic, marking a return to practices aligned with international standards.
31. Yao Xue (CEO of Wuhan Dazhong Stomatology):In 2019, Opportunities Outweighed Challenges for Private Dental Practices. Population aging, rising living standards, heightened health awareness, and the continuous pursuit of aesthetic improvement have driven strong demand for private dental services. Meanwhile, the sector faces numerous challenges, including a shortage of highly qualified dental professionals and suboptimal management standards.
32. Zhong Hongyang (Director of Guangzhou Delong Dental Clinic):As 2018 draws to a close, practicing dentists have felt varying degrees of pressure. In 2019, influenced by the broader economic environment and increasingly fierce market competition, private dental practices will face even greater challenges. I believe that opportunities and challenges coexist; every dentist must strive for excellence in every patient interaction and every treatment procedure to build a strong reputation and achieve long-term success. Our goal is not merely to survive, but to thrive and go the distance.
33. Zou Qifang (Founder of Arrail Dental):From a market perspective, I am optimistic about 2019. Policies aimed at improving public welfare and expanding domestic demand will be further implemented, thereby unleashing greater consumer demand for dental care and sustaining the growth of the private dental market. From an operational standpoint, however, we will face new challenges. As national policies become more liberalized, more clinics will enter the market. Against the backdrop of consumption upgrading, consumers will raise their expectations for dentists’ technical expertise and service quality.
As the industry evolves, new technologies will continue to emerge. To meet these challenges, we must further cultivate self-discipline, self-improvement, and innovation. Self-discipline entails a strong sense of responsibility and reverence, working together to foster a healthy industry environment. Self-improvement requires proactive learning to keep pace with the times. Innovation demands an open mindset, embracing both technology and change. We are fortunate to live in a promising era. By working together, we can promote the healthy development of China’s dental healthcare market.
34. Zhu Zhenghong (CEO of Taikang Bybo):Whether public or private, within or outside the state system, individual practitioners or chain clinics, all are contributing to consumers’ oral health. Regardless of their background, good dentists will always be respected professionals.
35. Julia (CEO of Meivi Dental):In 2018, China’s economy entered a “winter period.” The marketing-driven, large-scale physical dental clinic model will reach a bottleneck, and the private dental sector will enter a transitional phase in 2019. Business operators and managers will become increasingly rational, placing greater emphasis on the healthy development of their enterprises. In the professional realm, basic diagnostic and treatment services will receive growing attention, patient management thinking will gain wider acceptance, and price wars for major procedures will gradually subside. Operating private dental practices in first-tier cities will become increasingly challenging, while doctor-led startups in third-, fourth-, and fifth-tier cities will continue to rise.
36. He Zhou (Founder of Huajing Dental and Huajing Elite Education):Private dental practices are clarifying their strategic direction and forging a new landscape, with symbiosis and mutual prosperity emerging as the new theme for industry development. Establishing next-generation clinics through innovative restructuring mindsets will become the prevailing trend.
The road ahead is challenging, yet the future holds promise. Each year marks a new leap forward—this holds true for the industry as well as for life itself. 2019, much like 2018 before it, may not unfold exactly as we wish, and all will eventually drift away with the wind. This article is dedicated to welcoming 2019.
In summary, we can identify several clear trends in the oral care industry in 2019:
1. With the compliance of taxes and fees, and the development of digital artificial intelligence technologies, business data has gradually become transparent and shared. Industry standardization management is on the agenda, while transformation, upgrading, and compliant operations are important future trends;
2. Capital-driven and technology-driven institutions have begun to compete fiercely for talent and engage in aggressive marketing battles. As patients’ consumption of dental medical services becomes increasingly rational, mergers and acquisitions within the industry will intensify, with the coexistence of survival of the fittest and the phenomenon of bad money driving out good continuing unabated;
3. The inaugural year of commercial medical insurance has officially begun, and changes in payment methods will completely disrupt the traditional consumption landscape of private dental healthcare. A new medical consumption concept centered on commercial insurance will gradually become a habitual practice among middle- and high-income groups.
4. From an operational perspective, competition for talent will intensify, and retaining top dentists is increasingly becoming the most critical issue for the survival and development of dental healthcare institutions;
5. Over the next two years, small, fragmented, and poorly regulated dental institutions will face a wave of closures, mergers, and restructuring. Only those that genuinely prioritize patient interests and deliver high-quality solutions will be able to survive and thrive.
6. In the professional realm, basic diagnosis and treatment will garner increasing attention, patient management thinking will become more widely advocated, and price wars over large-scale projects will gradually subside. Private dental practices in first-tier cities will face growing operational challenges, and high-end dental services will come under pressure. Meanwhile, doctor-led startups will become increasingly common in third-, fourth-, and fifth-tier cities. Primary-care dental institutions are expected to be less affected and will continue their steady upward trajectory.
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