At present, there are many participants in examination industry market in China, including public hospitals, private professional medical centers, private hospitals, health centers and sanatoriums, etc. According to the market shares of various medical institutions, public hospitals account for about 70%, while private professional medical centers account for about 20%. Other medical institutions do not take examination services as their main business due to the different work divisions, finally forming a market structure with public hospitals as their main body and private professional medical centers as their complement. Presently, there are 7,000 to 8,000 professional examination institutions in total in the market. And among these professional institutions several are in relatively large scale, such as Meinian Onehealth, iKang Healthcare Group, Rich Healthcare. The market concentration rate in physical examination industry in China is quite low, with CR5 less than 6% by sales revenue. The main reason lies in that public hospitals can bring confidence to the consumers with their years of brand, medical treatment personnel, and level of expertise. However, currently, there are a limited number of examination visits that examination sectors can accept in public hospitals, and the service level declines, for which the professional examination institutions get opportunities.
At present, domestic professional examination institutions are mainly distributed in first-tier cities such as Beijing, Shanghai, and Guangzhou as well as some second-tier cities. These institutions specialize in health examination services with strong market senses, advantages of professionalization in physical examination, marketization in operating and flexibility in operating mechanism, and objective conditions to grow up rapidly.
With the growth in living standards, health awareness and demand for health examination in China, there will be a further increase in the supply for professional health examination market. With the exclusive advantage that public hospitals do not possess, professional examination institutions are likely to enjoy more market shares of health examination. It is estimated that the proportion of professional examination institutions in health examination market will rise year on year.