The growth was driven by the investments completed, as 2012 was a year of consolidation rather than anything else. The companies in the private healthcare business finalized some EUR230 million investments in 2011-2012, according to ZF calculations. Under the circumstances, the top five companies posted double-digit growth.
MedLife, a business of Marcu family, posted the highest revenue in this industry, close to EUR60 million. It had almost 2,500 employees at the end of 2012.
The significant growth of the major operators comes at a time when this industry is slowing down. Although one of the most dynamic sectors of the economy during the crisis years, it started to show signs of saturation in 2012. Under the circumstances, some were quick to say the industry is about to see small players that have not had time to consolidate their business go insolvent.
The explanation for the growth of the major companies is their expansion and them gaining ground on the smaller businesses, which have trouble collecting their money.
The start of 2013 was difficult for the private healthcare industry, as it revenue was flat, believes Robert Serban, shareholder of Gral Medical. The new health minister in January announced plans to stop reimbursing the cost of services provided by private hospitals, which would have eaten a significant portion of their revenue. Although the plan has not materialized yet, operators are rather cautious about expansion.
“The private medical service market will follow the same trend until the year of the year (be flat i.e.),” Robert Serban said.
He owns Gral Medical together with his wife Georgiana Serban.
Romanian entrepreneurs, such as the Marcu family, Doris Andronescu, Robert and Georgeta Serban, dominate the private healthcare business. Only one foreign strategic player, Medicover, made it into top five, while private equity fund Advent International owns the majority stake in Regina Maria.
The five largest private operators have more than 6,000 employees and will continue to hire in 2013, as well. The private medical service market is estimated at half a billion euros.
(English version by Loredana Fratila-Cristescu)