The global healthcare scene is rapidly transforming, as multinational corporations and international funds reshape the private sector landscape.
From Europe to Asia and America, foreign investment brings technological upgrades, innovative treatments and new services, while also creating pressures to improve infrastructure and revise standards of care.
In this dynamic environment, national health systems are called upon to find a balance between quality, accessibility and financial sustainability, seizing the opportunity to transform the inflow of capital into real benefit for citizens and society.
A roundtable discussion within the framework of the 8th Cyprus Healthcare Conference, presented by Ygia Polyclinic, highlighted the new conditions surrounding foreign investments and the restructuring of the private healthcare sector in Cyprus.
The focus was on the acquisitions of large private hospitals by multinational companies, the challenges for the economy and the gradation of the quality of services to patients, as well as the extent to which Cyprus can become an international medical reference center.
Andreas Georgallis, Partner, Head of ECM Cyprus/Deputy Chairman, Ygia Polyclinic Private Hospital, explained from a macroeconomic perspective that the aging of the population is one of the key criteria for investors to proceed with investments, as needs are increasing at a higher rate.
He noted that every investor also examines other factors, such as fiscal and political stability and the existence of a favourable tax environment, factors that Cyprus covers.
"The game changer for us was the implementation of the General Healthcare System (Gesy)," he pointed out, emphasising that the stable income it offers makes investment planning possible, while the certainty that the largest customer will pay on time is extremely important.
At the same time, he pointed out that Cyprus' well-trained medical and nursing staff play a crucial role, as does the rapid development of Limassol with the arrival of foreign nationals, who, as beneficiaries of healthcare, have increased demand.
"We do not see acquisitions in isolation, but as something complementary: Each new investment comes to complete the structure," he added, also referring to Eden Medical Centre, which offers palliative care as part of this strategy.
On his part, Iacovos P. Ghalanos, Managing Director, COO and Head of Healthcare at KPMG Limited, noted that acquisitions started in the US a few decades ago, moved to Europe and Greece and, after the pandemic, also reached Cyprus.
"We have seen a significant number of acquisitions that essentially reduce competition," he said, explaining that the concentration of large private hospitals in a few hands leaves the State Health Services Organisation (OKYpY)as the only competitor.
This, he added, creates obligations: "The OKYpY must operate in a competitive environment, while the regulator must monitor and correct distortions. Unfortunately, we are still in a transitional stage."
Regarding quality, he noted that there are conflicting views: Some studies show that acquisitions reduce quality, while others conclude the opposite. Nevertheless, he stressed that investments in new technologies, methods and processes have a significant positive impact.
Polis Georghiades, CEO of El Greco Medical Centre, spoke about the change that Gesy brought about for the Cypriot patient, who in the past was deprived of a right to choose that the rest of Europe enjoyed.
Regarding quality, he said that it is directly linked to public education. "In a survey conducted in the past on what is considered quality, many answered that it is having an appointment on time. In Europe, this is self-evident," he stressed, explaining that there are service mechanisms that ensure reliability even in the event of a delay.
Referring to foreign companies investing in Cyprus, he noted that quality is considered more of a given: "Practices that were new to Cyprus have been implemented by international organisations for years."
Thus, the entry of foreign investment strengthened the Cypriot healthcare system, incorporating quality indicators, both in the reimbursement model and through the accreditation process introduced in 2015.
The discussion was moderated by Michalis Papaiacovou, Portfolio Manager at ECM Partners and Member of the Board of Directors of Ygia Polyclinic.
(Source: InBusinessNews)
