Hospinvest, the leading proponent of hospital privatisation in Hungary, plans to concentrate on its portfolio of five hospitals, totalling 2,500 beds, and has told Healthcare Europa that it does not think conditions are right for further expansion.

The company says that there is still no clear regulation for private sector activity, that financing is insufficient, and that local governments are very uncertain as to how to proceed with privatisation plans.

It says that plans by another operator to privatise a hospital at Szigetvár have led to the same emotive response faced by Hospinvest in Eger, where some of the medical staff and townsfolk even launched a hunger strike.

All five hospitals are run by Hospinvest, under the functional privatisation model, in which the company has a long lease, typically of between 25 and 50 years. The hospitals are run for state patients, with 95% of payments coming from the state insurer.

Meanwhile, Chief Executive Jenő Gászpor has stepped down, although he still stays on the board. He is replaced as CEO by György Vas, with Péter Lengyel elected financial director.

The company is denying reports of wholesale change, and says that Gábor Kollányi remains president of HospInvest, and Dr. Gábor Deák remains vice-president.

The European Bank for Reconstruction and Development owns 29 percent of HospInvest.