Comparative Financial Analysis of Main Private Companies in the Health Sector in Greece, 2015-2020
Purpose: The purpose of this paper is to examine the financial situation of Hygeia Hospital, Athens Medical Center, Henry Dunant Hospital Center, Metropolitan Hospital, Euroclinic of Athens, Mediterraneo, Metropolitan General and Mitera Maternity Hospital for the years 2015-2020. Design/methodology/approach: The Greek health system is one of the most privatized systems in the EU. The public NHS health system is characterized by its hospital-centric character, the lack of primary health care, its limited and irrational funding and the reduced satisfaction of citizens. On the other hand, the private sector of health service provision has grown in recent years and especially in the secondary care sector there are trends of centralization. A percentage of 66% of the total turnover is carried out by eight large private clinics, seven of them are located in Attica, while 50% of the total market share belongs to 2 Groups. Alongside, is to examine the importance of the private sector and especially the specific companies, which are the largest in the health sector, in covering the population with health services. Findings: The analysis presented above, seems to indicate that, in the aftermath of the financial crisis, the sample companies, on average, operate at low levels of liquidity and depend crucially on future sales. In addition, most firms depend heavily on loan capital to finance their assets, e.g., loan capital is almost four times greater compared to equity capital for companies in the sector, while for the sample companies, extreme discrepancies are recorded, both, between companies and between financial years. Practical implications: The analysis presented above, seems to indicate that, in the aftermath of the financial crisis, the sample companies, on average, operate at low levels of liquidity and depend crucially on future sales. Originality value: The article briefly evaluates the financial position of the major private health providers in Greece, due to their importance in the health sector in the country. An important issue that must be examined in the future is the impact of the Covid-19 pandemic on the financial operation of the health sector in Greece.