Private clinics in Czech Republic investing to alleviate effects of crisis

2009-12-23

Czech private healthcare providers are investing in development in order to overcome the difficulties caused by the crisis, according to a report in Czech Business Weekly magazine. They have been hit by the crisis in two ways: on the one hand by a reduction in demand from customers from Western Europe, whose numbers have dropped significantly, and on the other – by reductions in the amount of funding from Czech insurance firms. The funding has been reined in because of the increases in unemployment caused by the crisis. For example, Asklepion, an aesthetic medicine clinic and institute, began to record lower revenues as early as the beginning of 2009 at its two branches, in Karlove Vary and Marianske Lazne. The reduction reached 10% year on year in August, but business has started to improve slowly since then.
Whereas the reduction in the number of foreign customers is being counterbalanced by that of Czech clients, companies expect next year to be even worse in terms of funding from the health insurance funds. The firms expect no increase in reimbursement from the funds and also a reduction in net cash income for direct medical services to customers.
The private health firms are, therefore, taking steps to expand the range of their services and to improve quality. Medicover, for example, is planning technological innovations and the installation of superior equipment, and Lekarsky Dum Praha 7 intends to launch packages which would include accommodation for foreign customers, recreational programmes and other incentives.