Current Market Situation

Commercial medicine of St. Petersburg is on a rise. According to the economists’ data of year 2014, the annual turnover of commercial medicine in St. Petersburg is estimated at about 37 billion rubles (around € 534 million): the legal market of more than 28 billion rubles (around € 400 million), including VHI - 8 billion (€ 115 million), and the informal marker of more than 8 billion. (Doctorpiter 2014.) http://doctorpiter.ru/articles/8371/

In accordance with the register of medical organizations operating in the field of Mandatory Health Insurance in Saint Petersburg, the amount of healthcare providers working in MHI in year 2015 is established at 351 organizations. http://www.spboms.ru/kiop/main?page_id=235 As mentioned before, organization with any form of ownership is entitled to provide healthcare services in MHI.

Today the demand for healthcare services is stable and effective, even though it is still low, compared to economically developed European countries. St. Petersburg’s prices for medicine today are among the most expensive in the whole country. That provides consistent development for a small medical organizations, in which supply exceeds demand, thus creating favorable conditions for competition and increase of services quality. (Nikitina 2012.) http://www.narcom.ru/ideas/common/33.html

However, St. Petersburg population solvency is not sufficient enough for the formation of large multi-functional private clinics, assuming an initial investment of around € 10 million. High expenditures, a lack of customers’ solvency resulting in the lack of profit, which is an essential condition for business development, imply that these projects will not pay off in a foreseeable future. Nevertheless, the necessity and high probability of such enterprises emergence is possible in 5-7 years, in case of continuous growth of social welfare. (Nikitina 2012.)

Today is the period of medium-sized healthcare providers’ active formation, conditioned by the initial financial barrier of around € 1 million. Competitiveness in this segment is not too high yet, however in 2-3 years the similar trends (as for small medical organizations) are expected, meaning that the quality requirements and initial investment will grow. Today, small businesses have an average annual turnover of up to € 1 million, where net profit margin ranges from 15 to 30% depending on the type of service provided and the market segment the company focuses on. Medium-sized enterprises have an average turnover of € 1,3 - 3,5 million., with net profit margin of 5-15%. For large private foreign clinics expect a turnover of up to € 10 million can be expected, with the net profit margin range of 5-7%. (Nikitina 2012.)

Nevertheless, there exist an experts’ forecasts, that the amount of medical organizations in St. Petersburg will gradually decrease, due to the gradual consolidation of the market and enlargement of clinics. In other words, large and powerful clinics will tend to acquire small ones, which may be caused by customers’ aspiration to obtain a wide range of healthcare services in one organization. (Russian Agency of Medical and Social Information 2012.)

Date: 2015-12-17; view: 792