Romania's MedLife increases turnover by 20%, with corporate growth driving medical service revenues up

Romanian private healthcare operator MedLife upped its revenues by 20 percent this year, to some EUR 58.8 million, the expected level for this year. The increase was well above the general market increase of 2-3 percent this year. The expectations for 2013 are for double digit growth, with plans to invest in a new emergency hospital and a molecular genetics lab. The higher revenues were mainly due to the corporate segment increase for MedLife. Even though this market was down overall by 8 to 10 percent, MedLife managed a 40 percent increase in the last three years, according to a statement from the company. MedLife registered 5,000 patients a day in its units across Romania, up from 4,000 a day last year, and over 1,500 patients admitted to its hospitals a day, compared to 650 patients in 2011. The increase in number of patients however was not mirrored in the retail revenues compared to previous years, as the purchasing power and revenues per client declined. “It is probably the first time in recent years when the financial crisis has impacted the private medical segment. The purchasing power went down, the investment boom in new units or in new equipment slowed down, and the market itself slowed down, or went up a mere 2-3 percent,” said Mihai Marcu (in picture), president and founder of MedLife. The company could have achieved a turnover of EUR 60 million, but the funds cashed in from the National Insurance House (CAS) were below the estimations, Marcu explained. The corporate client segment was up 43 percent for MedLife compared to 2011. The company has around 1.6 million patients in 2012 so far at a group level, excepting its subscribers, and hopes it will reach 2 million patients at the end of the year. The six hospitals that work non-stop have made a large contribution and are expected to add to this number during the holidays. MedLife was founded in 1996 and is currently the largest private medical operator in Romania. It runs nine hyperclinics in the country, eight labs, six hospitals, three maternity hospitals, 28 general medical units, nine specialized units, six pharmacies under the PharmaLife brand, and collaborates with 135 partner clinics, editor@romania-insider.com (photo source: the company)