(Yicai Global) June 29 -- Discontented with their confinement to the traditional health check-up market, China's two titans of private health examinations, iKang Healthcare Group Inc. [NASDAQ:KANG] and Meinian Onehealth Healthcare Holdings Co. [SHE:002044], have begun to stage active incursions into the high-end and post-exam markets.
A new round of business competition between the two giants is thus imminent.
Meinian has twice announced that it will up its involvement in the high-end health check business, while iKang Healthcare is set to encroach into the high-end and post-examination health exam arena, said its founder Zhang Ligang.
In traditional health examination services, a health check center will not further intervene if abnormalities emerge, although from abnormal indicators to real illness, much room remains for provision of additional health management and services, Zhang told Yicai Global.
Ikang Healthcare is also trying to develop offline businesses such as dentistry and high-end clinics to extend its client-service portfolio, Zhang added.
These health check institutions are conducting a "snatch and grab" operation against hospitals, Hou Xuchao, founding partner of Shanghai-based China Insights Consultancy, told Yicai Global, adding that, since outpatient income accounts for 30 percent of total hospital income, and examination income makes up 20 percent of outpatient income, hospitals will not just sit idly by and look on as private health-check interlopers siphon off their revenue stream.
Meinian is moreover also expanding into high-end services. The company will add steam to its move into the high-end market, it announced on June 15 and again on June 25.
Meinian is looking at health check-related extended services, including health Big Data, genetic testing and telemedicine, among other fields, Caitong Securities Co. analyst Shen Rui noted.
Growth has become difficult as domestic demand for high-end health checks rises even as the group-buying traditional physical examination market has basically become saturated. In addition to the high-end market, chronic disease management and health management in the aftermarket will also open new opportunities for growth, Shi Lichen, founder of Beijing-based Dingchen Pharmaceutical Management Consulting Center, advised.