2018 was Terveystalo’s fifth consecutive year of robust growth

2018 was Terveystalo’s fifth consecutive year of robust growth. It was another record year for us as Terveystalo grew in all key areas.

Terveystalon toimitusjohtaja Yrjö Närhinen

2018 was Terveystalo’s fifth consecutive year of robust growth. It was another record year for us as Terveystalo grew in all key areas. Our revenue grew by 8 per cent to 745 million euros and our adjusted EBITA margin improved by 1.2 percentage points to 11.8 per cent. After many transformational projects, including the Diacor integration and our successful introduction to Helsinki Stock Exchange, our employees were again able to direct their focus on developing our core business, enhancing our service delivery, and gaining efficiencies of scale. We have built a strong platform for growth. We saw broad scale growth in all customer groups and improved our financial performance in every quarter, while at the same time delivering superior customer experience to a record number of customers.

Broad scale development accross operations was one of our major successes in 2018. We managed to tap into pockets of growth while further improving our operational efficiency and quality. We are proud of our network, which runs efficiently round the clock—across Finland. I am also particularly delighted by the improvement in our customer satisfaction: Our Net Promoter Score, or NPS, increased to 71 in appointments and to 91 in clinic hospitals and customer satisfaction in remote services was record strong. Correct and effective treatment is the foundation of all our activities. We continuously develop and measure our clinical quality and effectiveness and have further expanded its reporting. In the Quality and Responsibility Book, published at the end of February, we report on the results of this work and explain in more detail how we manage quality and corporate responsibility in Terveystalo and the strategic importance of quality in our business.

Efficiency gains in our physical network have enabled us to invest heavily in digital services. Our cost-efficient solutions, such as remote appointments and other digital services, ensure that our customers have access to the service they want, regardless of time and place. Our capital expenditure in intangible assets will continue to grow as we further invest in our digital platform.

On top of strong performance in our core business, well-being and preventive services grew at a record pace. These services meet the changing needs of our customers and complement our comprehensive care chain. Oma Suunnitelma, our digital personal health management plan is a good example of a service that reflects our holistic approach. More than 170,000 individual health plans have been made since its launch in the end of 2017. In addition, we recruited a significant number of professionals and made multiple acquisitions in well-being services in order to support growing demand. We expanded our service range to massage therapy with Rela Group acquisition and introduced new types of partnerships. Our minority investment in Etsimo Healthcare, a company that develops a platform combining artificial intelligence, machine learning and health data, is an example of this.

Our public healthcare services grew in double digits. In addition to strong organic growth, the transformative acquisition of Attendo’s Finnish health care operations which was completed in the end of the year was a major step in our evolution as Finland's leading private player in providing public healthcare services. We take our social role seriously and aim to be a long-term, reliable partner for society.

In 2018, we introduced a new mission: Fighting for a healthier life. This mission involves many important perspectives. The major health challenges facing our society, including lifestyle diseases such as diabetes and musculoskeletal disorders, as well as mental health issues, involve high costs for Finland. For our part, we aim to support holistic, preventive practices that help people stay as healthy as possible. Our objective is to harness our health care expertise to enable each individual to live a healthy life, while also serving as the highest quality health care partner in times of illness. This way, we continue to develop the Finnish health care system towards an individualized approach instead of one that is geared towards the system. We want to actively engage in social debate and continue to focus on quality in health care at the national and local levels.

At Terveystalo, we want to be a partner in health for all Finns and be present in individuals’ everyday lives, independent of time and place. Our task is to repeatedly win our place in our customers’ hearts and minds by working systematically and responsibly, with greater wisdom and transparency.

Naturally, our success is the end result of the dedicated work of our employees. Close to 10,000 health care professionals now work at Terveystalo, about half of whom are private practitioners. We were chosen as the most desired employer by both doctors and health care students for the sixth year in a row, and 93% of our employees were satisfied with Terveystalo as an employer. We are on the right track.

Terveystalon toimitusjohtaja Yrjö Närhinen

Yrjö Närhinen
Chief Executive Officer

Annual Review 2017