Private healthcare services become concentrated

Centralization of companies that offer healthcare services continued in 2007. Several acquisitions were carried out in
2007, the main one being Suomen Terveystalo’s acquisition
of Medivire Työterveyspalvelut.

As a result of consolidation, in 2-3 years the markets will probably be dominated by a few nationwide service providers and a few strong local players. The growth in unit size creates preconditions for technology investments and improves service quality, cost-efficiency and competitiveness. Establishment of larger companies also improves the private sector’s competitive preconditions and chances to complement public sector services as a partner.

In occupational healthcare, private operators are larger service providers than health centers. In the occupational health care markets the most competitive service providers for large corporations are nationally operating service providers that can offer one extensive service network and centralized reporting services to companies who operate across the country.

Municipal outsourcing services increase

In 2004, municipalities’ and federations of municipalities’ purchases in healthcare services amounted to EUR 210 million, which was only 3 percent of the municipalities’ running costs. From 2002 to 2005, the service purchases increased by EUR 50 million (KTM publications 25/2006). Overall, the growth in municipal outsourcing services amounted to more than 30 percent in the past two years.