HBI Spotlight

 

Is Orpea’s bold plan enough to save the business?

Plagued with well documented allegations and investigations, and saddled with €9bn+ debt, on Tuesday Orpea presented its plan for recovery to the creditors who last month gave it just four months to clean up its finances. Has it done enough? We speak to a range of market experts to find out if it can weather the storm. 
November 18, 2022

€8bn to save German hospitals, but no relief for labs

The German government has pledged an €8bn support package to help hospitals and care homes tackle inflation and rising energy costs, and promised to end Germany's flat-rate DRG tariff system, but other parts of the the country's under pressure health care sector - particularly smaller lab groups - are struggling to stay afloat.
November 11, 2022

Inflation hits margins for Medicover and Terveystalo

Poor results have seen big share price drops at two of the sexier listed health care service groups. Medicover, the pan-emerging markets outpatient operator, saw shares fall 11% on Q3 figures showing a net loss of €18.4m and Terveystalo, the Finnish and Swedish outpatient group, fell 23% to €6.23 after revealing a net loss of €19.6m. Since the start of the year both have seen their share prices halve or worse. Inflation, labour shortages, Ukraine and a big shift in how health care is delivered post-Covid are behind the poor results.
November 4, 2022

Orpea forced to take drastic steps to fix finances

Orpea has four months to clean up its finances and reach a new agreement with its creditors on debt restructuring. The conciliation period which it has agreed with the courts has bought it time to consider its options in the face of rising costs and interest rates, and a cooling real estate market. The main proposal under discussion is a debt/equity swap which would result in a drastic dilution of existing shares, but it is hard to see how the numbers could add up. HBI hears from analysts about the tough decisions facing the group.
October 28, 2022

Opportunities abound as Saudi Arabia plans $13bn private healthcare expansion

Saudi Arabia’s health ministry is making $13bn (SR48bn) plans for 100 healthcare projects that will involve the private sector. The public-private partnership proposals include constructing two new medical cities, a project to provide 900 beds for medical rehabilitation, and long-term care services, and it looks like foreign investors are actively being courted.
October 21, 2022

M&A health care deals slow on debt fears

After a heady 2021, activity in European health care M&A is slowing down. Big ticket auctions have been withdrawn and processes are often run more cautiously as dual track, rather than general auctions. But underlying demand for health care assets is strong, with PE sitting on trillions of recently raised dry powder. Listed groups look cheap. HBI catches up with bankers from across Europe for their take.
October 14, 2022

Germany to reduce inpatients by a quarter, as hospitals face insolvency

German health minister Karl Lauterbach is to implement the country's first major health care reform in 20 years. From 2023, hospitals will aim to reduce spiralling costs and remedy the workforce crisis by shifting as much as 25% of their inpatient activity to outpatient and, eventually, closing some clinics and hospitals. HBI chats to German sources to find out more about what this means for for-profit operators.
October 7, 2022

Orpea CEO blames “unethical” former managers following €269m H1 loss

Laurent Guillot, CEO of French multinational elderly care group Orpea, has partially blamed the company's net loss of €269m in the first half of 2022 on "unethical behaviour" by the company’s former managers. But the company's finances appear to be in better shape than the headline figure suggests.
September 30, 2022

Is the PE tap being turned off?

Economic uncertainty could well mean a slowdown in M&A from private equity houses. Could we be facing a repeat of the dark days of 2009, and a halving of deal flow, or is there light on the horizon? HBI has been chatting with consultants and advisers over the last couple of weeks to see if there is a consensus.
September 23, 2022

EDG for sale, while Dentex sells

As exclusively predicted by HBI at the start of August, pan-European and dentist-led European Dental Group (EDG) is up for sale.
September 16, 2022
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