Jiamei Dental: Private Health Care in China

Posted: 1 Feb 2012

See all articles by William C. Kirby

William C. Kirby

Harvard Business School

G. A. Donovan

Asia Pacific Research Center

Date Written: December 8, 2011

Abstract

With the recent announcement from the Chinese government that the country's healthcare system was going to undergo reform, Jiamei Dental Chairman Liu Jia wondered what that meant for his 15 year-old dental clinic business. Founded in 1993, Jiamei Dental Medical Management Group ("Jiamei") rode the wave of China's rapid economic development and had become China's largest private dental chain with 84 clinics in Beijing and seven other major cities. But China was changing fast, and Liu acknowledged that Jiamei's ongoing expansion depended on many factors beyond its control, notwithstanding government reform, Jiamei was also faced with pressures from its private equity general partners. The year 2009 was shaping up to be a pivotal one for Jiamei. It had planned to open dozens more clinics during the year. At the same time, Liu was facing stiff competition from regional and international private dental clinic competitors, high-end private hospitals, and now possibly the government. These factors offered new complexities into the expansion plans of this entrepreneurial firm.

Learning Objective: Growth strategy of an entrepreneurial business in the face of new government policies and worldwide economic hardship.

Suggested Citation

Kirby, William C. and Donovan, G. A., Jiamei Dental: Private Health Care in China (December 8, 2011). Harvard Business School General Management Unit Case No. 910-404, Available at SSRN: https://ssrn.com/abstract=1996668

William C. Kirby (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

G. A. Donovan

Asia Pacific Research Center

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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