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
Nonbacterial Prostatitis
For over a year now I have suffered with nonbacterial prostatitis. I am 65 years old and my prostate is 50 cubic cm. I have treated this every way possible to no avail. As I understand it, there are only 2 possibilities: 1) Daily painkillers and sleeping pills which leave me in a drug-induced stupor. 2) Radical
prostatectomy, although I don't have cancer and my PSA is around 1. I don't live in Russia and it isn't possible to have a radical prostatectomy here. Can I have this operation in your center? Because of the severe inflammation, I can only sit and walk for limited amounts of time. I am near insane from the constant pain and sleeplessness.
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As with all civilized urologists in the civilized world, we COMPLETELY remove the prostate ONLY in cases of prostate cancer. At the same time, if you would like to be seen by us for assistance, at your convenience we can examine you and treat your problem.
Both knees
I would like to get MRT and diagnosis for my knees. Left has old trauma and right is hurting now permanently. An English or German speaking doctor would be an advantage. KR Florian
Dear Florian. Be sure you'll get all the answers for your questions. We have MRI and English-speaking staff including knee surgery specialists. Our assistants will contact for further instructions. Kind regards.
Laser surgery for removal of varicose veins
Does you clinic offer laser surgery for removal (or correction) of varicose veins on the legs? I would like to learn about both the aesthetic and medical side of the issue.
Our clinic performs the most common and advanced methods of varicose veins’ treatment. This includes classic phlebectomy, injection sclerotherapy, and foam sclerotherapy (the most common method of treatment in Europe). The method of treatment depends on certain medical conditions. If the disease manifests itself as
small spider veins, the laser correction could be performed by a surgeon-phlebologist or a dermatologist. But each case is always individual. You need to make an appointment for a consultation to discuss all the issues in more detail.
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Cancer of the thoracic spine
I have cancer of the thoracic spine. According to the MRI, I have wedge-shaped vertebrae, and small fractures in some places, with the absence of normal bone. Is it possible to undergo a vertebroplasty if the lumbar region is also affected? Will the lumbar vertebrae be able to support the thoracic vertebrae after
this procedure?
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It is necessary to analyze the MRI scans in this case. Metastatic vertebral bodies are treated with radiation and chemotherapy according to our principles. Vertebroplasty is possible, but it is difficult to say anything specific without seeing the scans.
Hernia-related pain
Hello, I had hernia-related pain about one month ago. With abrupt leg and foot movements, I experience pain in the cervical segment of the spine, radiating into my arm. MRI test result: degenerative-dystrophic changes of the cervical segment, spondylosis, osteophytosis of C5-C6 segment, posterior hernia of C4-C5
segment with a tendency to sequestration. Could the hernia growth be stopped? What do I do?
...more If the MRI data shows a disk protrusion (small hernia) which does not cause dural sac compression and you have no clinical manifestations of the disease, you need to undergo physical therapy and therapeutic physical training aimed at strengthening the muscles of the cervical segment of the spine. In order to make the
decision, you must make an appointment and show the MRI results to a neurologist or neurosurgeon, who will give you recommendations for further action. You can get all necessary assistance at our center.
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