Romanian medical group delays expansion in Moldova and Bulgaria due to regional instability

Romanian medical group Romgermed is rethinking its plans to expand in the Republic of Moldova and in Bulgaria, due to the regional instability, according to the company. “Nothing can be built on uncertainty and tension and the problems in Ukraine have a negative impact, affecting the ability of prediction and the trust in an economy running smoothly. This negative perception has strengthened in recent weeks among both the business community and in the banking sector and, unfortunately, no stabilization is seen,” said Ciprian Nicoara, general manager Romgermed Medical Group. “Romgermed’s decision is to wait for the clarification of the political situation and the stabilization of the economic evolution in the region,” he added. However, this decision to delay the expansion plans doesn’t affect the company’s economic situation, reads the statement. According to the group’s plans, if the current tensions ease out and the business environment will be safe, the expansion plans will be updated with the new information and a decision will be made. This year, Romgermed expects a growth in turnover of up to 15%, while next year, the group plans to expand its network of laboratories. In 2015, the company also wants to complete work at the new hospital. Romgermed currently runs a network of 20 laboratories nationwide, conducting over 4 million analyses in 2013. Earlier this year, the company opened RomgerVet – a laboratory for veterinary analysis – after an investment of EUR 750,000. Romgermed had a turnover of some EUR 21.5 million in 2013, and hopes for a 15% increase in 2014. Romgermed starts EUR 3 mln chain of veterinary labs in Bucharest Romgermed plans to open ambulatory of future 250-bed private hospital next year Irina Popescu, irina.popescu@romania-insider.com