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Contrasting healthcare markets in the GCC

Too reliant on revenues from the petroleum industry, the GCC countries are pushing for economic diversification – and competing for foreign investment. As a result, the healthcare industry is seeing major government incentives and huge PPP projects. We look at how Saudi Arabia, the UAE and smaller Gulf states are drawing investors.

So what really happened at Bupa?

After four years, in which he transformed Bupa with a £1.8bn M&A drive, the company announced that CEO Stuart Fletcher is to leave after failing to meet expectations. His departure follows 2015 results which saw a fall of pre-tax profits of 39% to £347m. Where does that leave his plans to build an international brand with strengths in services as well as insurance? What really went wrong? With 2015 sales of £9.8bn, Bupa still has heft. Outside the USA, it remains one of the two largest international private medical insurers, the largest international dentistry player, one of the largest care home groups and, probably, the largest player in outpatient care – certainly the only one with scale in four continents.

Apollo’s expansion plans stumble on regulations

Apollo Hospitals is proposing a Rs 750 crore ($112m) rights issue to fund its five-year plan to expand its hospital network. But after a first failed attempt in October 2015, India's Foreign Investment Promotion Board (FIPB) is turning down Apollo's proposal again.

Gulf States to boost PPPs, eHealth, preventive care and long-term care

In its comprehensive annual report on the healthcare industry in the Gulf Cooperation Council (GCC) states, private equity house Alpen Capital explores current trends. Projecting the GCC total private and public healthcare market to grow 12.1% to $71.3bn in 2020, it highlights population growth, the introduction of health insurance and rising healthcare costs as key drivers –resulting in the development of PPPs, eHealth, preventive care and long-term care.

Capio France partners with supplementary insurer in hospital project

Pan-European healthcare provider Capio's French division is working with Mutualité Française Rhône, which brings together 260 supplementary insurers, to create the largest private hospital in Lyon, France. As Capio boosts its surgical activities, Mutualité Française it to take over rehabilitation services. We speak to Philippe Durand, director general of Capio France.

French hospital insurer follows providers abroad

Groupe Sham, France’s largest medical liability insurer, expanded to Spain in 2014 and to Italy last year and is targeting new markets around the Mediterranean. With already 9% market share in the medical liability sector in Europe, the group wants to take advantage of the internationalisation of healthcare provision.

Bupa smiles despite write offs

What looks at first sight like dismal results from Bupa, the international insurer and healthcare operator, with a fall in pre-tax profits of 39% to £374m on sales of £9.8bn is actually much brighter than they first appear. Exclude most write offs and currency fluctuations, and pre-tax profits fell 2%, exclude all write offs and they rose 7% on sales up 6% in constant currencies. That is despite a 5% drop in sales at Bupa Global, the international insurance arm as Bupa dropped unprofitable business. We talk to CEO Stuart Fletcher about how apps and ehealth are helping sales, new insurance offers and acquisitions.

GHG boosts profits, opens outpatient centres

Georgia Healthcare Group (GHG), which dominates the Georgian healthcare market, saw net profits for 2015 soar 78% year-on-year to GEL 23.6m (€8.5m). Sales also grew by 22.5%, to GEL 242.7m (€87m), reflecting a buoyant and increasingly state driven market. GHG’s CEO, Nikoloz Gamkrelidze, revelled in reaching 30% EBITDA margins ahead of time and now wants a third of the market by sales.

Interview: Dr André Schmidt, CEO, Median

Merging Median and RHM has created Germany’s largest rehabilitation network with sales of €700m in 2015. André talks about his vision of creating optimised clinicial pathways which span acute care through to inpatient rehab and on to outpatient care and ehealth wearables. Andre is speaking at the Healthcare Business International 2016 conference on April 26-27 in London – click here to see the agenda.

Report: East Africa – rising slowly, steadily, surely

The private sector plays a key role in healthcare delivery across Africa. While the East African economies of Kenya, Uganda and Tanzania are experiencing relatively high growth, public sector healthcare facilities are sub-standard. The private sector already accounts for nearly half of total expenditure and is coming up with innovative and affordable ways to provide services. Here we look at the main groups and track trends.

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