Biggest private healthcare provider in Romania cuts costs, moves temporarily online

The management of the MedLife medical network, the leader of the private medical services market in Romania, has taken several measures to limit the impact of the crisis caused by the coronavirus (Covid-19) pandemic on its business.

The group will send non-critical personnel into technical unemployment and reduce by 50% the salaries of the management team for a period of 45 days. For the personnel in technical unemployment, MedLife will top up the benefits paid by the Government up to 75% of the gross wages.

At the same time, MedLife will negotiate with all landlords of the premises where the group’s clinics operate, with the purpose of delaying or reducing the rents paid for the next period.

Another measure is to reduce the work schedule for key administrative staff from five to four business days, starting March 26. MedLife has also reached an advanced stage of discussions with the banks to increase the liquidity available at group level to a comfortable level for the next 3-6 months.

“Moreover, there are also discussions about what investments can be made at this time for the post coronavirus period, such as the development of treatment centers for the recovery of lung functions, testing and monitoring of patients with medical conditions incompatible with the SARS-CoV-2 virus (such as cardiovascular diseases, high blood pressure, diabetes, oncological patients). We believe that in the near future, medium and long term, the need for medical services will increase substantially,” the company said in a note to investors.

In the meantime, MedLife has launched online medical consulting services by videoconference. Subscribers will benefit from this new service free of charge. The new program offers patients online medical assistance for numerous specialties, including general medicine, internal medicine, pneumology, ENT, cardiology, dermatovenerology, endocrinology, gastroenterology, gynecology, neurology, neurosurgery, pediatrics.

The consultation session has a similar duration to a consultation, an average of 20 minutes, and involves a discussion with the specialist doctor.

(Photo source: the company)