Shares of RO medical services provider MedLife rally on new legislation
The shares of medical services provider MedLife soared 24% in the last month at the Bucharest Stock Exchange, propelled by the so-called “co-payment law” likely to strengthen its financial profile.
The emergency ordinance passed last week by the Government, by which private medical services providers can legally collect additional money from patients for medical intervention (on top of the fee paid from the public health insurance fund), will have a positive impact on the earnings of private hospitals, according to analysts consulted by Ziarul Financiar daily.
For two years, the law of personal contribution in private was put on ice, after being criticized, among others, for the lack of limitations for the prices of interventions.
MedLife is also one of the best performing shares listed on the main floor of the Bucharest Stock Exchange in the last month, with a 24% rally of the price amid transactions of about RON 31 mln (EUR 6 mln). For comparison, the blue-chips index BET rose by 5%.
(Photo courtesy of the company)