Announcements

Georgia Healthcare Group launches two ambulatory clusters

Georgia Healthcare Group PLC (the "Group" or “GHG”) announces that it has recently launched two new ambulatory clusters in Tbilisi, the capital city and in Kutaisi, the capital of West-Georgia. The Tbilisi ambulatory cluster located in the Varketili neighborhood, covers a population of c.300,000 and the Kutaisi ambulatory cluster covers a population of c.200,000. GHG has additionally enhanced its existing ambulatory cluster in Tbilisi, Gldagni neighborhood of c.250,000 population, by adding an Express Ambulatory Clinic. Ambulatory clinics cater to all age groups and provide a wide range of outpatient services, including General Practitioner and specialist physician consultations, imaging and functional diagnostics, as well as clinical, biochemical and serological laboratory tests.

 

The launch of these ambulatory clinics is consistent with the Group’s announced strategy to grow its healthcare services business through rolling-out a network of new ambulatory clinics across Tbilisi and in other major cities in Georgia. GHG replicates its hospital consolidation experience in the outpatient segment by expanding organically into ambulatory clinics where GHG’s current market share is close to zero. Following the launch of these ambulatory clinics, GHG now operates a total of 4 ambulatory clusters, of which 3 are located in Tbilisi and one in Kutaisi. Total revenue from ambulatory clinics was GEL 3.7mln with a 31.0% EBITDA margin for the nine months ending 30 September 2015, representing c.2% of GHG’s revenues.

 

“I am glad that we are continuing to build momentum towards our goal of launching c.30 ambulatory clinics over the next 2-3 years. We plan to capitalise on the high growth potential of ambulatory services driven by recent healthcare reform and Georgia’s new prescription policy that significantly increases the number of outpatient visits. Outpatient spending represents c.40% of national spending on healthcare services, but is less than 5% of GHG revenues. We are targeting to increase this to 15% of 2018 revenues,” commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.