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Healthcare: Analysis: In 2019 private health networks will develop by absorption of independent medical practices
The private medical service market will continue to grow in 2019, while the development of private clinic networks will boost by the absorption of independent medical practices, KeysFin mentions in an analysis of tendencies of private medical services.
KeysFin analysts consider that in 2019 there will be an increase of the fight for human resources between players in the private medical market, while employees of the public health system will be more and more interested in the private domain in Romania.
Businesses of private medical companies grew by 500% compared to 2007, the source mentions. Private medical services reached 11 billion lei in 2018, from 9.7 billion lei in 2017, while business in this sector grew by 21.3% compared to 2016 and by 472% compared to 2007.
The net profit of private clinic networks grew by 29% against 2016 and by 420% against 2007m to 1.5 billion lei in 2017.
“In 2018, the private medical service market reached a maturity level, with a number of companies maintained at 15,000, on the drop by 1.5% against 2016. Compared to 2007, the evolution is impressive - there are about 90% more companies than 12 years ago”, the KeysFin analysis shows.
Now there are over 65,000 employees in the private medical sector, on the rise by 2.1% compared to 2016 and by 122% against 2007. Average labour force costs grew by 22% against 2016 and to 39,000 lei per employee, while labour productivity advanced slower, by 19%, to over 147,000 lei per employee in 2017.
At regional level, most clinics are in Bucharest (business figure of 4.5 billion lei), Brasov (488 million lei), Timis (468 million lei), Cluj (404 million lei) and Constanta (334 million lei). Together, Bucharest and the four counties generated over 64% of the overall business figure in 2017.
In the following years, the need for medical services will significantly grow, in the context of accelerated economic development, by extending services, improving the living standard and people’s life expectancy, KeysFin specialists consider.
According to data of the Institute for Health Monitoring and Evaluation, while in 2015 health expenses in Romania were 1,128 dollars/person, by 2040 it will grow to 3,085 dollars. Although Romania will allocate less money than Bulgaria (3,435 dollars) or Hungary (3,723 dollars), will exceed Serbia, Ukraine and Moldova.
The KeysFin document is based on annual financial data, reported by companies dealing with activities referring to human health, to the Finance Ministry. All figures are in lei and data were extracted in January 2019. Estimates are based on the annual average rate calculated over 5 years.