Terveystalo's addressable markets
Terveystalo operates in Finland in occupational health, primary health care, specialty care and well-being services. In 2021, Terveystalo expanded into occupational health in Sweden with the acquisition of Feelgood, one of Sweden's leading occupational health companies.
Terveystalo's addressable market in Finland
In Finland, the total cost of health care is estimated at around EUR 15 billion. About 75 percent is publicly funded and provided. Privately provided health care accounts for just over a quarter, which includes publicly funded and privately provided (6 percent) and privately provided and funded (20 percent) health care. The privately provided market relevant to Terveystalo, approximately EUR 4.3 billion, includes primary health care, dental care, specialty care, occupational health care and child welfare services. Terveystalo's share of this entire market is about 25–30 percent.
Finland has a unique occupational health system that covers 1.9 million Finns. Occupational health is associated with a statutory pension system. The system encourages employers to invest in occupational health to bring down pension costs. This has effects on public health as well as the total cost of health care. According to studies, companies that systematically invest in work ability management benefit manifold. One invested euro returns six euros as a result of lower sickness absence and pension costs. Terveystalo provides occupational health services in Finland to over 27,000 companies and to a total of approximately 670,000 people through its corporate customers.
Between 2016 and 2020, Terveystalo's target market has grown by approximately 1.7 percent per year (CAGR). The COVID-19 pandemic had a negative impact on market growth in 2019–2021, but healthcare market growth returned to positive in 2022. The rapid ageing of the population, the accumulated care debt during the pandemic, and the high incidence of lifestyle illnesses will increase the need for healthcare in the coming years.
Terveystalo's addressable market in Sweden
In Sweden, the total cost of health care is estimated at around EUR 30 billion. About 73 percent is publicly funded and provided. Privately provided health care accounts for around EUR 7 billion, which includes publicly funded and privately provided (19 percent of total healthcare market) and privately provided and funded (5 percent) health care. In Sweden, the privately produced and financed market consists largely of oral health services that are not offered by the public sector for people over 23 years, as well as employer-financed occupational health care. The private healthcare market in Sweden is quite fragmented; the combined market share of the ten largest players is around 36 percent. Market growth has historically been faster than the Finnish market.
The ageing of the population, lifestyle diseases, lengthened care queues in the public sector, growing awareness of health and well-being, and the increase in voluntary health insurance are driving the growth of the private healthcare market also in Sweden.
Terveystalo’s subsidiary Feelgood, which operates in Sweden, offers services in occupational health and, including; risk assessments, ergonomics and physiotherapy, organization and leadership, and harmful use. In addition, the company provides private health care and well-being services to its occupational care customers´ employees and their families through the digital service Feelgood Plus.
The Swedish occupational health market is stable and has a size of around 0.4 billion euros. Feelgood is Sweden's third largest provider of occupational health services with a market share of around 19 percent. The Swedish occupational health system includes fewer services required by law than the Finnish system. Occupational health and private health services are also in different systems. However, employers are interested in offering more extensive occupational healthcare in order to reduce sick leave and extend working careers. Terveystalo's subsidiary Feelgood serves approximately 8,300 corporate customers in Sweden, with a total of approximately 1.2 million occupational health end-customers.