Disintegrating hospitals in Greece
If you thought tariff drops in France and the privatisation debate in Sweden were bad, think again. Private healthcare in Greece is deteriorating. Clawbacks have increased from 40% to 50% this year, meaning public health insurer EOPYY only pays one out of two euros invoiced.
That has left groups like Euromedica, which conducts a lot of work for the state in primary care and has borrowed extensively between 2003 and 2010, in a tough place.
Euromedica, Greece’s second largest private hospital network after Hygeia, is estimated to have lost the equivalent of €165m due to clawbacks. It is currently in talks with its lenders to get a refinancing agreement.
In this bleak environment, it is no wonder Greece is deserted by foreign investors. Asklepios has written down its stake in hospital group Athens Medical (Iatriko) to zero.
One source though, a senior executive at a leading operator, tells us 2017 could be a decisive year: “We cannot survive for much longer. 17% of all private hospitals in Greece have already shut down and the state wants to avoid fuelling an emerging cash market.” Sooner or later the government will have to give the sector a break.
We will look at the issues at stake in greater details in this month’s feature.
We would welcome your thoughts on this story. Email your views to Ariane Jugieux or call 0207 183 3779.
