 |
Financial data from the major private hospital and diagnostic service operators in Albania for the year 2022, analyzed by BIRN (Balkan Investigative Reporting Network), shows that the private healthcare market experienced a decline of 28% after the pandemic, with large operators reporting losses.
Albanians spent at least 11.7 billion lekë during the past year to pay for services provided by private hospital and diagnostic operators, a figure 30% lower than the expenses of 16.4 billion lekë in 2021, the year when the new coronavirus pandemic reached its peak. Almost all operators analyzed by BIRN reported a decrease in revenue, but the decline was most significant for companies specialized in diagnostic services, likely due to the reduced demand for diagnostic tests for the new coronavirus.
The largest player in the market, American Hospital, which is also the sole shareholder of International Hospital, controlled 72% of the market among the ten analyzed companies during the past year. American Hospital alone held 47%, while International Hospital (Hygeia) had a 24% share of the market.
Among the ten companies analyzed, including Spitali Kontinental, American Hospital, Genius Lab, Intermedica Center sh.p.k, Biocheck Diagnostic Center, Noval Diagnostic sh.p.k, Pegasus Med sh.p.k, International Hospital, Salus, and Spitali Europian, they collectively closed the past year with losses of 2.33 million lekë. These companies had earned a total of 1.64 billion lekë (about 16 million euros at the current exchange rate) due to the increased demand for services caused by COVID-19.
 |
American Hospital, the largest company in the market, has, in fact, suffered continuous losses and remains the company with the highest losses in the market. The year 2022 ended with a loss of 336 million lekë. Since its establishment in 2006, the company has accumulated cumulative losses of 1.78 billion lekë, which have diminished its shareholder capital from the initial 2.9 billion to 1.13 billion lekë at the end of 2022.
The company's revenue during the past year was 5.5 billion lekë, experiencing a 23% decrease compared to the previous year.
The continuous losses do not seem to have deterred investors and banks from providing support for the project. During the past year, the company obtained a new loan, increasing its assets to 8.8 billion lekë, while the capital-to-assets ratio fell to only 13%, meaning the company has 13 lekë of shareholder capital for every 100 lekë of assets and 87 lekë of debt.
On the other hand, International Hospital, the second-largest company in the market, which is under the ownership of American Hospital, closed the past year with a more stable balance. Its revenue of 2.8 billion lekë was 10% lower than in 2021, but the company managed to reduce all expenses to end the year with limited losses. The company was founded in 2007 with a capital of 4 billion lekë, and its accumulated losses so far have reached 3.9 billion lekë. The company holds assets worth 5 billion lekë.
Among other major operators in hospital services, Salus had revenues of 618 million lekë, while Spitali Europian had 439 million lekë.
Intermedica appears to be the most successful company in the laboratory services sector in the country. During 2022, it recorded revenues of 930 million lekë and profits of 127 million lekë.
Genius Lab is another major player in the laboratory services, with revenues of 794 million lekë and profits of 194 million lekë.
According to state budget data, taxpayers spent about 64 billion lekë on public healthcare services during 2022, while the analyzed private sector with revenues of 11.7 billion lekë suggests that the market is worth at least 75.7 billion lekë. Other healthcare expenses, such as expenses for small laboratories not included in this report, under-the-table payments in the public sector, or out-of-pocket payments for drugs, are impossible to quantify.