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HOSPITALS BUSINESS
To address the oversupply of beds and enhance the quality of the healthcare industry in Georgia, the Government introduced a new facility regulation, effective from September 2023. This regulation established upgraded standards for healthcare facilities and imposed minimum requirements for space allotted per hospital bed. To adapt to the new standards, our hospital’s business initiated several renovation projects in all its facilities. This resulted in certain sections of our healthcare facilities being temporarily closed and unable to accept patients.
From an operational performance perspective, the business is focusing on improving the capacity utilization of hospitals, increasing patient and employee satisfaction across the chain, and driving efficiency through digitalization of clinical processes.
From a clinical perspective, the business continues to grow a new generation of doctors and nurses, while building robust clinical quality management processes. The medium-term goals remain knowledge and expertise advancement through education and professional development of our physicians and nurses. Quality assurance through the introduction and improvement of various activities and processes at hospitals remains a top priority for us so that the business delivers better care to its patients. Going forward, the business strategy and key focus will be on increasing revenues from elective care and outpatient services, which are not subject to the state funding. These services have higher margins and considerably faster cash collection periods.
Considering that Large and Specialty Hospitals are in Tbilisi and major regional cities, they are strategically placed for and have positive prospects of increasing the flow of out-of-pocket as well as privately insured patients. Elective care and outpatient services tend to have a considerably higher share of such patients.
CLINICS AND DIAGNOSTICS BUSINESS
The clinics business has been growing rapidly driven by the increase in patient awareness of the importance of primary healthcare. High-growth potential is driven by market consolidation through chain expansion, adding new services and increasing the customer base. The business added two new blood collection points in 2023 and invested in marketing and brand image to capitalize on significantly increased brand awareness during the COVID-19 pandemic. The business strategy is centered on acquiring patients to enhance the utilization of existing facilities. Moving forward, the clinics business will continue to expand its base of registered customers, extend the availability of medical and personal care services, and develop remote channels such as a call center, while refining the existing app to offer greater customer convenience and improved user experience.
The diagnostics business will focus on increasing its utilization (currently at c.60%) through expansion of its retail chain, attracting more B2B contracts and adding new services and technologies such as next generation sequencing, while from a clinical perspective, the business will continue to provide the highest standards of clinical processes, and in the long term become a platform for education through an accredited training center, residency program and scientific research and studies center.