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
Dermoid cyst and pregnancy
An ultrasound revealed a mass in my left ovary during the first pregnancy. I was told that it is a dermoid cyst. Five years have passed since then. I gave birth to a second child. An ultrasound was performed annually. There were differences in size, but not significant. Since I’m going to have the 3rd child, another
ultrasound was done today. The doctor said that the cyst had increased. I am concerned about it. Don't know where to start. What tests are needed? Thank you.
...more Surgical treatment is strictly indicated in your case given the long history of the mass in the ovary and its rapid growth in recent times. In our clinic, we perform such an intervention laparoscopically through 3 small punctures. Patients go home next morning after the surgery and may return to work after 3 days.
This surgery must be as delicate to preserve healthy ovarian tissue (considering your reproductive plans) as radical at the same time to remove the mass together with the capsule. At the preoperative stage an expert level ultrasound with Doppler is required, as well as blood tests for Ca-125 and НЕ-4 tumor markers. The decision concerning the necessity of FEGDS and colonoscopy is taken based on the results of these tests.
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Total knee replacement
My mom suffers from gonarthrosis for the past three years. Despite treatment by injections the pain is still present. MRI revealed a meniscal tear in the posterior horn, the presence of small bony osteophytes on the patella, a small amount of fluid in the joint cavity (signs of exudative synovitis were detected)
joint space is asymmetrically narrowed in the medial segment. The pain is ongoing but the knee remains flexible. Tell me, please, whether the surgery is contraindicated for meniscal tear in case of arthrosis? Is it possible to do an arthroscopic surgery on the meniscus in our case or it should be «major» surgery? And what would you advice concerning knee replacement for the patient in the age of 57? What is the life time of the artificial joint?
...more It is necessary to make an X-ray of the knee in direct projection in standing position. If it turns out that there is no medial cartilage in the medial area, then the knee replacement is the only solution. The age of 57 is normal for the prosthetics. Modern artificial knee joint (when properly placed of course) will
serve for a lifetime. You can make an appointment via phone +7 (495) 933-66-44.
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Kardanov Andrey
07 September 2016
Pain
I am 19 years old, professionally engaged in weightlifting. I did an arthroscopy of both knee joint a year ago, now feel pain in them and it prevents me from training at full capacity. I visited a traumatologist, and «osteoarthritis of 1 degree» was diagnosed. Could you advise me some medicines or anything else to
relief the pain? Thank you very much for the answer!
...more
First of all you should undergo an MRI and find out what was done at arthroscopy; if it’s really an arthrosis of 1 degree, hyaluronic acid injections are possible and physiotherapy is not required. Anyway, you are always welcome to consultation for thorough examination.
Question to Dr. Yakobashvili
Tell me, please, at which age child's hearing should be checked-up if we were informed at the hospital before discharge that one ear does not hear. At the moment the child’s age is 1.5 months. Thank you.
These tests done in the hospital are often false negative. Hearing can be tested now, it is necessary to make an appointment to the audiologist.
Cought
A child of 11 years old, suffers from cough for more than six months. The cough is dry, sometimes attack-like, mainly begins during the day, and often occurs before sleep. There is no cough at night. CBC is normal, glucose is 4.16, total IgE 111.80, Toxocara, Ascaride are negative, Cytomegalovirus, Mycoplasma are
negative, PPD test is negative as well. A chest x-ray is normal. We have already consulted with a therapist, otolaryngologist, pulmonologist, neurologist, gastroenterologist... the cough is still present. What should we do?
...more First of all, there are no results of whooping cough testing among the results provided above. The disease cannot be ruled out, even if your child was vaccinated. The blood test for antibodies against the whooping cough germ is required (blood test for class M and G antibodies against Bordetella pertussis). Second,
even a slight increase in class E antibodies is a reason to visit an allergist and to perform an evaluation of respiratory function with bronchodilator. This method will detect a latent bronchial spasm in your child. Even if the results of the test will be normal, allergologist mast rule out the allergic nature of the cough even if it's not obstructive syndrome. Third, this cough can be due to gastroesophageal reflux. It is difficult to draw any conclusions having no data of gastroenterologist’s consultation. 24-hour acidity monitoring of the stomach and esophagus is carried out to confirm or exclude the presence of reflux. Fourth, you didn’t mention whether x-ray of nasopharynx and paranasal sinuses was done. Perhaps, after all, the pathology is associated with ENT organs.
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