Euroclinic expanding on ambulatory to ensure clients for its hospital

“In 2007, Eureko decided to focus on the company’s core business, insurance, which involved the sale of Euroclinic, and in 2008, we spent the entire year looking for a third party - as we needed to expand – a partner willing to invest in Romania, and who would use the brand to expand the medical services.  We were looking for an international operator.  Discussions revolved around the creation of a chain of private hospitals and clinics, necessary for the development of the Euroclinic brand,” said Catalin Popa, Chief Executive Officer of Euroclinic.  At the time, Popa indicated that investments could reach some €50 million.  However, negotiations failed, as international operators were reticent to invest at that time in the development of the local medical service market, leading the insurer to decide to continue to invest in the organic growth of the business and increased value of the existing brand, in the form of a network of three-five clinics, to be developed this year in Bucharest. As of 2010, the network is due to develop nationwide, with the goal being full services for insured persons.  Planned investments will cost €2.5 million.  The operator has scheduled three years of organic growth, although an offer will be taken into consideration.

Although most medical service suppliers started out with a network of clinics, developing hospital services subsequently, Euroclinic’s project was different.  Established in 2005, with 50 beds, the Euroclinic hospital did not manage to exceed a 50 percent occupancy rate, although it has already reached operational profitability.  The company is forecasting €10 million in turnover in 2009 and plans to hire an additional 80 employees.

The private medical service market is estimated to be worth €350 mln, with main players Medicover, MedLife, Unirea Medical Center (CMU), Sanador, Hiperdia, and Medsana.  Of these, only MedLife and CMU presently have operational hospitals.