IFC Finances Romania’s First Private Hospital Chain to Increase Delivery of
Health Services to Country’s Interior
In Bucharest
Ana Maria Mihaescu
Tel. +40-21-201-0365
E-Mail: Amihaescu@ifc.org
In Washington, D.C.
Ludi Joseph
Tel. +1-202-473-7700
E-Mail: ljoseph@ifc.org
Bucharest, Romania/Washington D.C.,
October 16, 2006—The International Finance Corporation, the private
sector arm of the World Bank Group, will finance MedLife S.A., the first
private hospital chain in Romania. IFC’s financing—which will stimulate
the growth of the country’s private health care sector and support delivery
of better health care services to the country’s interior—comprises a
EUR 5 million loan and an equity investment of $5 million equivalent in
Romanian currency.
Headquartered in Bucharest, MedLife is a successful private health care
provider owned by a family of physicians and bankers. The company offers
a wide range of services through its 11 clinics in Bucharest and Ploiesti.
It also operates three medical laboratories in Bucharest as well
as Hyperclinica, one of the largest private medical facilities in Romania.
MedLife is building a 100-bed hospital adjacent to Hyperclinica that is
expected to open in December 2006. IFC’s support will allow the company
to expand its high-quality health care services to areas outside Bucharest.
It will partially finance the development of new hospital and clinic combinations
with 40 to 50 beds (similar to those in Bucharest), which will open in
Constanta, Timisoara, Brasov, Iasi, and Cluj over the next two to three
years.
Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia, said,
“Providing support for the development of infrastructure, including social
infrastructure, is one of IFC’s key priorities. Health care facilities
are typically capital-intensive and have a long gestation period. By providing
long-term loans, IFC is playing an important role in the development of
this sector. Successful execution of the MedLife project will encourage
other investors—both Romanian and foreign—to participate in modernizing
the country’s health care industry.”
Guy Ellena, IFC Director for Health and Education, noted, “One of the
main reasons that IFC works in the social sectors, such as health care,
is to help relieve the burden on the country’s public health system and
stimulate private health insurance. We are very happy, therefore, to partner
with MedLife to deliver these services. MedLife combines the vision and
characteristics we associate with success. We also hope that IFC’s considerable
global experience in hospitals around the world will be of value to MedLife
and its sponsors.”
Mihail Marcu, General Manager of MedLife, added, “MedLife’s Memorial
Hospital, which will soon open, is the first step in our strategy
to expand into regions beyond Bucharest, especially areas where there has
long been a great need for high-quality private health care. We see IFC
as an important partner in helping us achieve our strategic vision. This
partnership recognizes our efforts to establish benchmarks of medical excellence
and outstanding quality of service. IFC’s financing will help us bridge
the gap in the delivery of medical services and realize our vision of emerging
as one of Romania’s leading health care providers.”
Memorial Hospital is expected to become a source of best practices for
Romania’s medical community through professional management and training.
In 2005, IFC’s Advisory Services Department advised MedLife on the design
and business strategy for the new hospital.
IFC in Romania
IFC’s strategy for Romania focuses on supporting local companies’ efforts
to become more competitive in the domestic market and expand into other
countries in the region, especially by improving corporate governance,
environmental standards, and best practices. IFC has advised the
government on restructuring the health sector, including through public-private
partnerships. As of June 2006, IFC’s committed portfolio in Romania
was $500 million, and the outstanding portfolio was $489 million. IFC’s
portfolio is spread over financial markets (78 percent), projects with
DistrigazSud (13 percent) and Petrotel Lukoil (7 percent), and general
manufacturing (1 percent).
About IFC
The International Finance Corporation, the private sector arm of the World
Bank Group, is the largest multilateral provider of financing for private
enterprise in developing countries. IFC finances private sector investments,
mobilizes capital in international financial markets, facilitates trade,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to businesses and governments. From its
founding in 1956 through FY06, IFC has committed more than $56 billion
of its own funds for private sector investments in the developing world
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. With the support of funding from donors, it
has also provided more than $1 billion in technical assistance and advisory
services. For more information, visit www.ifc.org.
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