Acquisition spree for Rhoen
publication date: Oct 30, 2009
Expect a flood of acquisitions by the big German private hospital
groups. Rhoen Klinikum alone has six in its sights and expects to close
on two before the year end.
One of the two includes a major deal with revenue of over €100m Rhoen told analysts. Volker Braun from Commerzbank says: “I am also tracking the local press across Germany and a lot of politicians are now coming forwards proposing that they sell off loss-making hospitals.”
Rhoen’s 9 month results saw strong organic growth at 7.6%. Sales rose 8.6% to €1.72bn with after-tax profit up 8.9% at €97.1m. It now forecasts sales of €2.3bn for the year and net profits of €130m. The company has 48 hospitals on 37 sites across Germany, but, unlike its big rival, privately-held Asklepios, it has no plans to move abroad given that private hospitals still have only 6-7% of the German market.
All the big hospital groups are now setting up MVZs or medical care centres. These outpatient practices are a good way to gain extra hospital patients. But here Rhoen seems to be lagging somewhat. It is now indicating that it will only have recruited 107 physicians to MVZs. A year it was expected 200.
One of the two includes a major deal with revenue of over €100m Rhoen told analysts. Volker Braun from Commerzbank says: “I am also tracking the local press across Germany and a lot of politicians are now coming forwards proposing that they sell off loss-making hospitals.”
Rhoen’s 9 month results saw strong organic growth at 7.6%. Sales rose 8.6% to €1.72bn with after-tax profit up 8.9% at €97.1m. It now forecasts sales of €2.3bn for the year and net profits of €130m. The company has 48 hospitals on 37 sites across Germany, but, unlike its big rival, privately-held Asklepios, it has no plans to move abroad given that private hospitals still have only 6-7% of the German market.
All the big hospital groups are now setting up MVZs or medical care centres. These outpatient practices are a good way to gain extra hospital patients. But here Rhoen seems to be lagging somewhat. It is now indicating that it will only have recruited 107 physicians to MVZs. A year it was expected 200.