Georgia Healthcare Group PLC (“GHG” or the “Group”) announces that its hospitals business has signed a cooperation agreement (the “transaction”) with one of the country’s leading maternity houses, JSC “David Davarashvili Clinic” (the “Maternity Clinic”). Under the cooperation agreement the well-known Maternity Clinic, providing maternity and gynaecology services, will lease a 2,400 sq.m space at GHG’s referral hospital, Iashvili Tertiary Referral Hospital (“Iashvili Hospital” or the “Hospital”). Iashvili Hospital is the cornerstone of GHG’s neonatal and paediatric services and offers the most comprehensive portfolio of such services in Georgia. The Hospital has very strong reputation in the country among both physicians and patients.
As part of the contract terms, David Davarashvili Clinic will renovate and equip the leased space, which currently represents a long-term unused asset for the Hospital. The collaboration of the two leading healthcare facilities will form the country’s strongest location for all types of neonatal and maternal services, further increasing Iashvili Hospital’s patient footprint and occupancy rates.
“I am very pleased that GHG’s Hospitals business has already made progress towards its recently declared strategy, to optimise its unused assets and increase the utilisation of its healthcare facilities. The transaction is a good example of how forming partnership with synergetic businesses can drive additional referrals at our hospitals and will help us to strengthen our positions in maternity business where we have low market share. More importantly, leasing the previously unused asset will further improve the Hospital’s return on invested capital (ROIC), a key Group strategic priority.” - commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.
Name of authorised official of issuer responsible for making notification:
Ketevan Kalandarishvili, Head of Investor Relations