The rise in the sales of private medical service providers is also because of massive investments operated in the past few years by these companies.
The largest player on the private medicine market continues to be Medicover, which, through both divisions (clinics and its Synevo laboratories), registered total net sales worth RON 108 mln (€30 mln). However, as the two companies report separate financial results, and their combination would mean consolidating results, the two companies were taken into consideration separately. With a 21 percent profit rate, Synevo, the largest analysis laboratory chain in the country, proves to be one of the most profitable companies on the market. Synevo’s business soared 32 percent last year, also due to the national health assessment program, which injected additional funds onto the medical testing market.
The leader of the medical service market, MedLife, ended 2008 with a loss of RON 770,000 (some €181,990), and business worth RON 78 mln (approximately €18.43 mln), against a backdrop of aggressive expansion and the decision to sacrifice profit margins for market share. One year before, MedLife reported RON 0.45 mln (about €0.10 mln, calculated at an exchange rate of RON 4.23/€1) in profit and RON 42 mln (some €9.92 mln) in business.
Among medical clinic networks, Gral Medical posted the highest net profit rate, of 14.8 percent, down from 16.6 percent registered in the previous year, according to data published on the Ministry of Finance’s Web site.
Players on the national private health market valuate this at some €430 mln, and estimate a 20 percent growth rate in lei and stagnation in euro. One of the current trends is the increase in the businesses of large players, due to consolidation at the industry level, while small players are pushed off the market, due to declining margins.
