The Polish healthcare market is an interesting option for new businesses. Here are 5 reasons why it’s worth considering an investment in the healthcare market in Poland.
Favourable economic conditions
Without a doubt, Poland has proven itself to be an intriguing market for those interested in investing in the healthcare market. It is both in terms of starting a business, and in terms of expanding it. Here are the pros: long-term GDP growth, strong domestic demand, rising disposable income of Poles, falling rates of unemployment, and a society that prefers to spend money rather than save it. Furthermore, Poland is still below the average in terms of expenditure on medical services in the European Union. This gives a lot of potential for growth.
Unconsolidated medical market
The healthcare market in Poland is still strongly unconsolidated. Usually, renowned medical centres have only one location, and they don’t use their brand’s strength to expand their operations. Often, this results in patients having to travel considerable distances if they want to receive the best service possible. The exception to this rule is cardiology. This area in recent years has been consolidated by one local player with the support of a private equity fund. This shows that the healthcare market in Poland is ready for further consolidation in other areas, such as orthopaedics, ophthalmology and surgery.
The potential for cooperation between private investors and public hospitals
Most hospitals and clinics are still publicly owned. Therefore, their management is often neglected, which leads to problems with debt financing. As a result of this, hospitals are unable to attract the best professionals and have problems investing in new equipment designed to improve the standards and efficiency of treatment. Partnership between a public institution and private investor therefore is becoming more and more popular, since it allows to fund, for example, new equipment for diagnostic or laboratory imaging. The benefits are mutual. Hospitals benefit from modern equipment, and a private investor achieves the attractive ROI of a stable player, who is often supported by a contract with the NFZ (National Health Fund).
Scattered hospital services
Historically, most public hospitals have tried to provide as many services as possible. For the entire system, however, this is often an ineffective solution. In recent years, smaller institutions started providing basic healthcare services, while “plugging in” to larger institutions which, if necessary, provide a full range of specialised services. The more this trend develops, the better for larger institutions, which can focus on further investments in infrastructure and equipment. This creates the potential for cooperation with private investors in the role of, for example, hardware vendors or partners in the management of entire departments.
Increasing popularity of outpatient treatment
The average number of days spent in a hospital by patients and the average number of hospital beds per capita in Poland are one of the highest in Europe. Therefore, hospitals are slowly trying to balance out the disparity between in-hospital and out-of-hospital care. On the one hand, this enables the release of hospital treatment funds. On the other hand though, it forces a hospital to make considerable investments in the area of outpatient treatment, the demand for which is steadily growing.