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
Lump in my breast
I have noted the lump in my breast periodically appeared following breastfeeding my first child (as a result of plugged duct). I did an ultrasound, but it revealed nothing, as if everything was normal. I knead my breast periodically and feel pain at those moments. Now I am pregnant, due date is on 20th. What should I
do?? When to examine my breasts, is it possible to perform the examination during pregnancy and lactation?
...more The "lump" in the breast cannot occur after feeding, even if it was the plugged duct. You should not "knead" the breasts. If there is a problem or even if you think it is – the breast should be examined. Pregnancy and breastfeeding are not contraindications for this. Under normal conditions for pregnant women we
recommend a breast examination during 1 and 3 trimester (before childbirth). There are no contraindications for breast examination in your case. You are welcome at any convenient time for examination and advice on breastfeeding.
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Benign disease
I have a benign lump in one breast size of 12.0*9.9 mm. Puncture or a biopsy will be done next week. I was told by mammologist that surgery is needed. As far as I know, concerning the surgery, axillary lymph nodes are to be removed together with the tumor. I also know that in Europe lymph nodes are testes for
specific markers and only affected ones should be removed; if lymph nodes are no affected, they are not to be dissected and the surgery is minimally invasive. So what is your approach? Does it make sense to do it or you have the same methods and the same equipment?
...more If histological examination of the sample reveals fibroadenoma of basic type or tissue hyperplasia without atypia, or nodular type fibrocystic condition of the breast tissue, the question of surgical treatment should not arise. If biopsy reveals giant fibroadenoma sectoral resection is indicated, i.e. mass excision
within the healthy tissues and lymph nodes will be removed. In case of non- benign histological result, i.e. carcinoma is detected, subsequent immunohistochemical examination is required as well as a clinical oncologist and surgeon consultation; and the decision on complex treatment will be taken by case management team. With regard to the diagnosis and treatment methods in our center, each case is addressed individually. Sometimes we remove a benign area (for example, the area of hyperplasia with atypia) using the vacuum-needle technique through 3-4 mm incision. As for the surgical procedure protocols for benign breast tumors, benign simple fibroadenoma is not removed in America, Europe, Israel, etc. I would like to discuss your case with you in more details and perform some additional tests if needed, so I would be glad to see you at EMC’s Breast center.
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Melanoma
My mom had a mole (suspected for melanoma) removed in November 2015. Histology revealed lentigo melanoma in situ. We checked the slides back in the Netherlands, and the diagnosis was a superficial spreading melanoma of Clark 3 Т1а Beslow 0,8 stage; re-excision with capture of 1 cm of healthy skin is recommended. Is
it possible to make re-excision and subsequent histology in your hospital? If so, how soon?
...more We absolutely agree with the opinion of the European colleagues: re-excision with a wider offset is required; according to the Russian Protocol it is necessary to move 2 cm from the peripheral edge. This is for counter insurance, as lentigo-melanoma is a favorable type, and previous surgery is likely to put an end to
this story and the forecast is favorable. All the necessary manipulations for the study are possible in our Clinic; we have our own well-equipped laboratory with the possibility to ask the advice concerning the sample in Germany and Israel.
You should make an appointment with the surgeon-oncologist (Marina Bissessar) in the nearest time to conduct the diagnostic re-excision. Hope to help!
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A spot on the back and chest
I have a spot on the back and chest, what could it be?
A spot on the skin is one of the most common symptoms of various skin diseases. Infectious (viral, bacterial or fungal) as well as noninfectious skin including serious diseases and nevi (moles or birthmarks) can manifest as spots on the skin. You should go to the dermatologist for accurate diagnosis. The doctor will
examine you and, if necessary, a special instrument (Dermatoscope, wood lamp) will be used. A skin scraping can also be done in the lesion for microscopy, cytology or culture. A treatment will be prescribed after diagnosis.
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Batkaeva Nadezhda
07 September 2016
Uterine cancer
My mom was diagnosed with the uterine cancer. She is 68 years of age and has an obesity of 4th grade (the growth of 166 cm, weight 135 kg) and hypertension. Admission to the radiology department was recommended. What should we do? As far as I know the surgery is the only method for cancer of the uterus to be removed.
Is it really so that this surgery is only possible for young and relatively healthy persons?
...more It is not quite so. We can operate on any patient, but the issue is which complications can lead to patient’s death and which of them can just delay the recovery. From the anesthesiologist’s point of view, it is a major challenge to intubate patients with 4th degree obesity; the abdominal section is also possible,
but there is a 100% risk of suture line disruption and inflammation, let alone the postoperative pneumonia, venous thrombosis, etc. There is another option such as vaginal hysterectomy which is more acceptable and relatively safe in obese patients. It is not a «treatment standard», however, as it allows not obtaining pelvic washings, but still there is a possibility of complete cure. Anesthesia remains a problem - both general and spinal. Radiation therapy without surgery is another acceptable treatment option besides vaginal hysterectomy. A chance of complete cure is still exists, but the survival rate is on average lower than in surgical treatment
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Vladimir Nosov
07 September 2016
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