Terveystalo as an investment

Terveystalo, a company founded in 2001, has grown through 160 acquisitions into Finland’s largest private healthcare service company. In recent years, Terveystalo has made some significant investments, particularly in digitalisation and customer experience, as well as clinical and operational quality.

Terveystalo is Finland’s leading private healthcare service provider in a growing and structurally attractive market. An extensive network and integrated care chain enable comprehensive service for customers locally and all across Finland. Terveystalo’s customer-oriented business model and corporate culture produce first class services for all customer groups. Terveystalo’s strengths provide it with a number of avenues for growth. Growth can be achieved by 1) capturing market share in a growing market; 2) increasing revenue per customer with adjacent and complementary services; and 3) continued M&A in a fragmented market. By focusing on its core business, healthcare, Terveystalo can attract and retain competent personnel in addition to offering high-quality services for different customer groups.

Of the Finnish healthcare market, approximately 77 percent are publicly produced and publicly financed, 19 percent privately produced and financed, and only 4 percent privately produced and publicly financed according to NHG estimate. Even without the social and healthcare reform, a 5 percent annual increase in private production is expected in the coming years. In the past, Terveystalo has grown approximately one to three percentage points faster than the market, and this is also our long-term objective for revenue growth. In 2018, 89 percent of our EUR 745 million revenue came from the private sector; corporate customers accounted for 54 percent, private customers for 35 percent, and public sector customers for 11 percent. The acquisition of Attendo Health Services increases the proportion of public sector customers, strengthening Terveystalo’s position in all market scenarios.

 

5 REASONS TO INVEST IN TERVEYSTALO

MEGATRENDS ACCELERATE STRUCTURAL MARKET GROWTH

  • The ageing of the population and high prevalence of lifestyle diseases increase both demand for healthcare and healthcare costs.
  • People are increasingly willing to invest in health and well being and use of services.

COMPETITIVE ADVANTAGE FROM SCALE

  • Terveystalo’s broad and diverse customer base enables cross-selling and efficient use of resources.
  • Economies of scale enable continuous improvement of profitability: Terveystalo has an extensive existing network and scalable centralised operations.

CUSTOMIZED SERVICES FOR DIFFERENT CUSTOMER GROUPS ENABLE GROWTH IN EVOLVING MARKETS

  • The objective is to be the preferred provider of healthcare services for all customer groups and to continuously develop the services and network to respond to our customers’ individual needs.

OPPORTUNITY TO ACCELERATE GROWTH THROUGH ACQUISITIONS

  • Since 2001, Terveystalo has carried out over 160 acquisitions.
  • Because of the economies of scale and our strong experience, Terveystalo creates value through acquisitions.

THE COMPANY CULTURE ATTRACTS HEALTHCARE PROFESSIONALS

  • Terveystalo has been chosen as the most attractive employer among doctors and healthcare students for six years in a row.