MedLife prefers greenfield expansion

MedLife opened a clinic in Cluj-Napoca this year and finalized work on a multi-functional clinic in Timisoara. “We begin hiring in Timisoara next week. We need 38 people,” said Marcu. He added that MedLife does not have personnel problems like other operators in the private system. The company targets a 10 percent market share in Timisoara.

Last month, MedLife opened a clinic in Bucharest, in Unirii Square, and plans to open clinics in the Pantelimon and Drumul Taberei areas of the capital. The company has invested €6 million in the three clinics in Timisoara, Cluj-Napoca and Bucharest, while clinics in Iasi, Brasov and Constanta will be finalized in 2009. Total investments are worth €25 mln, of which €14 mln are own funds and profits and €11 mln come from the World Bank’s International Finance Corporation (IFC), a shareholder of MedLife since 2006.

The private medical service market increases by 30 percent annually, and Marcu believes that the moment is essential to expand, indicating that delays will show in market share losses.

To gain market share, MedLife has chosen to decrease its profit margin from 20 percent in 2007 to 12-14 percent in 2008. The company will launch a retail card for individuals, which will offer discounts in medical services.

MedLife targets over €20 mln in turnover in 2008.