Mydentist IPO Prospectus: UK's Leading Dental Chain with Over 650 Clinics Faces Dentist Shortage Amid Expansion

As the UK’s largest dental care provider, Mydentist treats over 8 million patients annually across its network of more than 650 clinics.

However, amid changes in dental clinic ownership and patients’ increasingly high expectations for care experiences, the rapidly expanding Mydentist still faces significant challenges. VCBeat (WeChat ID: vcbeat) will explore how Mydentist has won patient favor and analyze the challenges it encounters as a chain operator.

Mydentist is the UK’s leading dental clinic chain. As of the end of 2017, the company operated 654 dental clinics across England, Scotland, Wales, and Northern Ireland, and held 598 National Health Service (NHS) dental contracts.

Data shows that Mydentist was formerly known as Integrated Dental Holdings (IDH), a dental group, and officially adopted its current name in 2015. As one of the leading providers of private dental services in the UK, IDH has benefited from the rapid growth of the UK’s private dental sector amid the country’s economic expansion.

Annette Spindler, Chief Operating Officer of Mydentist, stated: “The new brand is more than just a name; it reflects how we integrate the brand into our daily lives and demonstrate our values and personality through our employees.”

As of March 31, 2016, the IDH Patient Services division accounted for approximately 7% of the market share in revenue and 5% in the number of clinics, while providing around 15% of all commissioned dental services in England and Wales.

IDH dental clinics, operating under the Mydentist brand, offer a wide range of primary dental care services, including dental examinations, fillings, and extractions, as well as more specialized dental services such as cosmetic dentistry and orthodontics.

Rooted in the UK dental market, Mydentist has benefited from favorable systemic trends, such as high stability in patient volume and pricing, the UK government’s long-standing commitment to enhancing dental services, favorable demographic growth trends, and rising consumer demand in the dental sector.

The types of products sold are primarily in the nursing care category.

Through the distribution network of its clinic services division, Mydentist has also become a leading supplier of dental and other medical consumer products, materials, and services, including the installation and maintenance of professional dental equipment.

The company sells dental supplies and services to at least 8,000 dental clinics, including those under its Patient Services division. IDH holds a 25% market share in the UK by revenue.

In 2017, Mydentist won the Gold Award at the Health and Safety Awards for three consecutive years. Presented by the Royal Society for the Prevention of Accidents (RoSPA), this award recognizes organizations that have maintained high standards in accident prevention over multiple consecutive years.

As the UK’s largest dental supplier, Mydentist has launched Plaque Attack, a free app-based game for children that delivers dental hygiene education to both kids and parents through engaging, interactive content.

As part of its Children’s Club initiative, Plaque Attack aims to educate children on maintaining good oral health and to inform them about which foods are beneficial for teeth and which are harmful.

Plaque Attack Game Software

Plaque Attack is available for free download to both Apple and Android users. Designed for children aged 5 and above and their families, the game tasks players with identifying “good” and “bad” foods in a race against the clock, helping to prevent tooth decay, cavities, and dental plaque.

This game features an interactive color chart designed to keep children engaged, while also providing parents with dental care tips and oral health knowledge.

This knowledge encompasses essential information on pediatric dental care, covering all stages from pregnancy and the neonatal period to toddlerhood and adolescence. The Plaque Attack game can be utilized in dental waiting rooms, allowing parents and children to not only enjoy their wait but also benefit from the experience.

A study conducted by Mydentist among 2,000 UK households reveals significant public confusion regarding the impact of food on dental health, with particularly poor awareness of sugar content in foods.

20% of parents believe that fruit smoothies are beneficial for children’s teeth, while another 19% of parents consider sippy cup beverages—despite often containing high levels of added sugars and additives—to be a safe choice.

The same study also revealed that 41% of children fail to brush their teeth both morning and night on a daily basis, and 19% of parents are unaware of the benefits of fluoride. This game was developed precisely in response to these findings.

Mydentist continuously supports the career development of all clinicians, fostering their growth through its core learning and development channel: the Mydentist Academy.

In the heart of Manchester, Mydentist operates advanced training facilities, which include an on-site operating theater, three training suites, and a dental head model room.

Clinics are generally not very large in scale.

This training facility is connected to a fully operational clinic located in the same building. Physicians can enhance their practical skills and professional standards here, while staying abreast of the most advanced knowledge in their field.

1. Professional Training Courses

Mydentist also provides a comprehensive training toolkit for everyone, enabling doctors to acquire team development knowledge through the management learning system.

These training materials are categorized by role and task, including onboarding, mandatory online training modules, learning aids, and role-specific training courses.

Mydentist’s courses also align with the UK’s Continuing Professional Development (CPD) cycle, and training hours completed within this system can be counted toward CPD requirements.

2. Clinical Support

All dentists receive comprehensive clinical support from Regional Clinical Support Managers and Regional Clinical Directors. Mydentist not only provides dentists with peer review, clinical groups, clinical newsletters, and communication opportunities, but also hosts annual clinical conferences for clinicians, clinics, and operational teams, enabling the team to hear annual reports from colleagues and suppliers.

In 2017, Mydentist held the third Mydentist Clinical Conference, with a total of 700 representatives from clinical and non-clinical teams in attendance.

At Mydentist, dentists can enjoy opportunities for advancement, full support, and complete professional autonomy. Mydentist believes in the power of dentists, which is why it invests significant time and money each year in developing dentists and their skills.

Mydentist has also established a dedicated organization to handle and manage the day-to-day administrative tasks of clinics, thereby allowing dentists ample time and space to develop their skills and careers.

Another major initiative by Mydentist is the “Shine as a New Me” program, which aims to enhance customer experience by training dentists in soft skills, such as building rapport with patients.

The Regional Development Manager will be responsible for organizing workshops to collaborate with colleagues in exploring and learning how to deliver warmer, more comfortable, and reassuring services.

Mark Jones, Manager of Mydentist Academy, said, “We also aim to ensure that we consistently help our customers in the best possible way by launching the ‘Shine New Me’ program.”

Patients visiting the dentist are often experiencing pain and may also feel anxious. How the dentist explains the condition to the patient can significantly impact the overall healthcare experience.

He stated, “However, we hope patients come to us for positive reasons, such as a desire to protect their teeth. We aim to help customers view dental care in a completely new light and find enjoyment in visiting the dentist.”

Mydentist has also launched several other internal training programs for regional development managers and clinic managers. Mydentist pledges to donate £50 to Bridge2aid, a non-profit dental training organization, for every referred employee hired.

Mydentist sponsored training for dental professionals in Africa and dispatched some of its own dentists to the region, a new initiative that consolidates its three-year partnership with Bridge2aid.

In terms of patient services, Mydentist has developed an online appointment system that allows patients to locate and book appointments at the nearest clinic based on their current location. The platform provides not only the specific location and operational status of each clinic but also enables patients to access information about the clinic’s dentists in advance.

The cost for patients receiving care at National Health Service (NHS) clinics depends on their specific medical condition; however, they are only required to pay a one-time consultation fee, regardless of whether follow-up visits with the doctor are needed. Currently, there are three common charging methods:

1. Combination 1: Fee £20.6

Project: Dental examination, diagnosis, health advice, radiographic imaging, dental scaling and polishing, fluoride varnish application, pit and fissure sealants, and future treatment plan

2. Package 2: Fee £56.3

Project: All services in Package One, plus dental fillings, root canal therapy, and tooth extraction

3. Combination Three: Fee £244.3

Item: All services in Packages One and Two, plus dental crowns, dentures, and dental bridges

According to Mydentist’s 2017 data, the company operated a total of 654 clinics as of December 31, 2017, compared with 677 clinics as of December 31, 2016.

Excluding the 12 clinics that have already closed this year, an additional 26 clinics have been classified as “held for sale,” and the company currently has no plans for further acquisitions.

The closure of multiple Mydentist clinics has caused significant difficulties for local residents in accessing dental care. In Gwynedd, nearly 4,500 patients have lost their only National Health Service (NHS) dentist, which was the sole private healthcare provider in the area.

Peter Ward, Chief Executive of the British Dental Association (BDA), stated that a significant share of UK dental practices remains in the hands of corporate clinics. Steve Williams, Clinical Director at Mydentist, commented,The clinic struggled to recruit new doctors for two years, which was why he decided to close the Wales clinic.。

Now, as Peter Ward points out, dentistry is not the only sector attracting capital; ophthalmology is also highly favored by investors due to its greater scalability. However, in the ophthalmology sector, clinical operations have a far smaller impact on enterprises than marketing activities.

In the field of dentistry, the largest portion of patient payments goes to clinically trained professionals rather than to flashy marketing campaigns.

So, to put it bluntly, if Mydentist cannot find dentists, the clinic will not be able to operate. A large number of members of the British Dental Association have expressed a preference for staying in practices owned by practicing dentists rather than chain clinics owned by corporations or investment firms.

For patients, the desire is to maintain a long-term relationship with their own dentist, ensuring continuity of care, rather than establishing a connection with a particular chain brand. If dental enterprises or chain brands fail to achieve this objective, they will struggle to attain sustainable long-term results.

References:

https://www.linkedin.com/pulse/mydentist-core-values-ashley-vinden/

https://www.wisealpha.com/loan/detail/17/idh2

http://www.dentistry.co.uk/2017/11/07/mydentists-day-out/

https://www.nature.com/articles/sj.bdj.2015.821.pdf?origin=ppub

https://www.syncinteractive.co.uk/mobile-game-portfolio-plaque-attack-educational-mobile-game-development/

http://www.dentistry.co.uk/2015/08/25/mydentist-launches-new-training-initiative/

http://www.healthinvestor.co.uk/ShowArticle.aspx?ID=4263

https://www.mydentist.co.uk/docs/default-source/Investors/fy18-q3-results-investor-presentation-vfinal.pdf

http://www.dentistry.co.uk/2017/04/25/mydentist-wins-health-and-safety-award/

http://www.dentistry.co.uk/2017/03/06/another-mydentist-practice-closes/