The Baring Vostok Investment Fund acquired a 27.8% stake in the United Medical Group Ltd. holding company, which is the parent company of the European Medical Center Group (GEMS). The deal amounted to $100 million. The amount and structure of the transaction are unprecedented in the Russian medical services market. The purpose of the deal is to finance GEMS projects with a planning horizon until 2015.
Baring Vostok Funds specialize in investments in Russia and other CIS countries. Baring Vostok's long-term investors include pension and university funds from the United States, Western Europe, and Asia. Since 1994, Baring Vostok Funds have invested more than $1.6 billion in 56 projects, including a number of successful companies in the financial services and oil and gas industries, telecommunications and media, and the consumer sector. Currently, the funds' attracted capital is $2.2 billion. Among the projects of the Baring Vostok funds are CTC Media, Golden Telecom, Yandex, Gallery Group, Ozon, Enforta, CFT, ER-Telecom, 1C, Barren Energy, Volgagaz, Zhaikmunai, Kaspi Bank, Vostochny Express Bank, Europlan, Novomet and many others. In 2011, Baring Vostok's investment in Yandex was recognized by the Investor Allstars Venture Capital Awards as the best venture capital investment. The investment advisor to the funds is Baring Vostok Capital Partners (Guernsey), which was recognized by readers of Private Equity Online and Private Equity International as the "Russian Direct Investment Company of the Year" in 2005, 2006, 2007, 2008, 2009 and 2010. Her advisor is Baring Vostok Capital Partners (Cyprus), which employs more than 30 investment professionals in its Moscow office.
GEMC was founded in 1986. In 2008, GEMS was acquired by the owners of Nidan Holding from the 36.6 Group of companies. The deal in 2008 amounted to $106.5 million. In 2008, GEMS included a multifunctional general clinic with a 14-bed hospital and a dental center. In the period from 2008 to the present, several major investment projects have been implemented within the framework of GEMS. In September 2009, a new multifunctional GEMS hospital was opened with a 30-bed hospital, a diagnostic department, including computer and magnetic resonance imaging, and an emergency and emergency department. In the same year, the European Clinic of Sports Traumatology and Orthopaedics (ECST) began operating under the supervision of Professor, MD Andrey Korolev. In 2010, a Women's Health Center was established under the leadership of renowned French obstetrician-gynecologist Jacques Peter, and in early 2011, an Aesthetic clinic was opened under the leadership of plastic surgeon Sergey Levin. Currently, the total number of GEMS beds is 72 beds. According to the results of 2011, the GEMS customer base includes 80 thousand patients. GEMS provides care to more than 40,000 patients annually. More than 5,000 people were treated in GEMC hospitals in 2011. Last year, 3.8 thousand surgical procedures, 50 thousand instrumental tests were performed at GEMC clinics, including: 7 thousand MRI examinations, 4.8 thousand MSCT examinations, 6 thousand endoscopic examinations and manipulations, 19 thousand X-ray and ultrasound examinations, as well as more than 350 thousand laboratory tests. GEMC medical team is a multinational team of doctors from Russia, France, the USA, Germany, Israel, and Japan. GEMC has 16 professors of medicine and more than 30 candidates and doctors of medical Sciences. Currently, the GEMC team consists of more than 900 people.
Since 2008, GEMC's revenue has increased 4 times and amounted to $80 million in 2011, which is 48% higher than in 2010. The EBITDA margin in 2011 was $25.6 million, or 32%. Revenue growth in the 1st quarter of 2012 was 46% compared to the same period in 2011.
The following projects are planned to be implemented as part of the GEMS development program until 2015:
- A multifunctional hospital in a building with a total area of 15.5 thousand square meters. This center will include six clinics in the following areas: oncology, urology, obstetrics and gynecology, mammology center, dental center, general clinical unit. The center will have an 80-bed hospital, an operating unit with 5 operating rooms, an intensive care unit with 12 beds, a diagnostic department including the latest generation of MRI from Siemens and MSCT from Phillips, a department of chemotherapy and hematology, and a radiotherapy department consisting of two Varian linear accelerators of the latest generation. The center's operating unit will be equipped with a multifunctional Da Vinci surgical system for performing robotic endoscopic interventions. The center is scheduled to open in the 2nd quarter of 2012;
- A children's center, including an outpatient clinic, an emergency and emergency department, and an 18-bed hospital. The opening is scheduled for the 3rd quarter of 2012;
- Multifunctional polyclinic in a building with a total area of 5,000 square meters in the Solntsevo district of Moscow. The center is scheduled to open in the 3rd quarter of 2013;
- Positron Emission Tomography Center (PET Center), including two PET/CT scans, a radiochemical laboratory, and a cyclotron for the production of radiopharmaceuticals. The center is scheduled to open in the 4th quarter of 2013;
- A multifunctional center for children's and women's health (perinatal center), including a prenatal center, a maternity hospital with 60 birth beds, a children's hospital, a pregnancy pathology center, and a postpartum rehabilitation center. The center is scheduled to open in the 4th quarter of 2014;
- A multifunctional rehabilitation center, including a 100-room hotel complex and a medical and wellness complex. The rehabilitation center will be located in the nearest Moscow region on an area of 5.5 hectares. The opening of the center is scheduled for the 2nd quarter of 2015.
The GEMC development model also provides for the opening, together with partners, of the Moscow International Institute for Advanced Training and Retraining of Medical Specialists with the involvement of professors and practitioners from the European Union (EU), the USA, Canada, Japan, and Israel. Long-term cooperation with major foreign medical specialists within GEMC's own clinics will allow the Group to organize these training programs at an expert level. The institute will have a simulation center that has no analogues in terms of equipment.
GEMC's specialized international relations department, GEMC Assistance, allows for fruitful cooperation with leading clinics and specialists in the developed countries of the world. The service also supports patients in treatment abroad, then supervising them within the GEMC clinics.
The dynamic development of the company and the growth of GEMC's capitalization are driven by European standards of medical management, active investment in new high-tech projects with the introduction of innovative medical equipment and the use of effective drugs, as well as the involvement of highly qualified doctors from developed countries and Russia. The favorable tax regime associated with the abolition of income tax in 2011 also contributes to the financial stability of the company.
GEMC's development strategy implies taking a leading position in the segment of providing private medical services in Russia. The company also plans to hold an IPO in the coming years. Thus, GEMC can become the first public private medical company in the CIS countries.
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Questions and answers
Рancreatic cancer
My wife of 64 years was diagnosed with pancreatic cancer in the autumn of 2014. Stage 4 was concluded. Surgery is impossible. There is a massive thrombosis. Three biopsies were carried out. A benign tumor was revealed. She lost a lot of weight. An episode of severe pain took place about one month ago. Currently, a
significant problem is the ascites, swollen legs; food is poorly digested, general discomfort. What can you recommend? Is it necessary to remove the fluid and what might be the consequences?
...more The picture you described is consisted with the concept of "metastatic ascites". Laparocentesis is appropriate as a therapeutic and diagnostic approach. Given the negative cytology, it is likely that the patient has a neoplastic disease of the colon, ovaries or stomach. Our experts will hold a consultation on the
same day and perform the procedure to verify the diagnosis and consider the possibilities of palliative treatment.
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Pavel Koposov
07 September 2016
Break iafter the last course of chemotherapy
Why a break is necessary after the last course of chemotherapy?
In cases where chemotherapy is not enough effective, some cells of the tumor does not die as a result of exposure and only slow down their biological processes temporarily, so they do not accumulate diagnostic radiopharmaceutical that can lead to a false negative result. After 2-3 weeks, tumor cells return to their
normal state and can be seen at the PET/CT scan. Thus, the break after the last course of chemotherapy should be done in order to obtain reliable results of the quality of treatment.
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Radiation therapy for prostate cancer
What to expect during radiation therapy for prostate cancer?
The procedure of external radiotherapy is similar to conventional x-ray examination. Radiation is invisible, has no smell and gives no sensations, side effects do not appear until 2nd or 3rd week of treatment.
Radiotherapy for prostate cancer is a local treatment; therefore, you may experience some side effects
only in those parts of the body that are exposed.
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Сhronic nonspecific spondylitis
Can we go to your center in the following case: the patient born in 1955. Diagnosis: chronic nonspecific spondylitis T7-T9. A state after interbody fusion T7-T9 with autologous bone. Brown-Sequard's syndrome. Right thoracotomy with interbody fusion using autotransplantation (resected rib) was done in 2010, no bone
block formed during the postoperative period. Transpedicular fixation T 5-6-10-11 was also done in November 2010. There was a primary healing on the wound as a result of treatment. He was able to sit and stand as well as stay in upright position up to 2-3 hours. At the moment, mobility is restored, able to walk and sit. But pain is still present. Can we expect further surgical treatment and rehabilitation at your center?
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In this case surgical care rendered fully, but it is hard to say more without images. If pain is still present, it is necessary to look for the cause of this, but it may be in the early postoperative period. You can contact us for a consultation to clarify the nature of the disease.
MRI or CT scan
Please tell me what kind of examination is better in case of head injury - an MRI or CT scan. I have hit my head in June this year, and now I feel a discomfort at the site of the injury sometimes (there in no acute pain)?
CT has advantages in the visualization of bone structures. MRI is better for soft structures imaging, including the brain substance. According to the description, the intracranial structures damage is unlikely. Why CT or MRI? An ultrasound of soft tissues in the area of injury is also applicable. The pain in the
scull can also be associated with vessel, for example, cranial arteritis, or lymphadenitis, or muscle/enthesis, and then you might need certain blood tests. And maybe these tests are not required. I would recommend you to see the doctor and let him assess the case; he will take a decision concerning following examination as a result of consultation.
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