Foreign interests buying up private healthcare sector

A report on Saturday raised fears over the private health sector in Cyprus transforming into a monopoly held by foreign interests, after it emerged US company CVC Capital is allegedly venturing into acquiring more hospitals on the island.

The company has already bought Apollonio and Aretaion hospitals in Nicosia through Hellenic Healthcare Group, and according to a report in Politis, is moving to purchase the Prognosis diagnostic centre in Larnaca.

Business plans are not ending there however, as CVC Capital is also reportedly eyeing another two unnamed hospitals in the capital.

The health ministry was not immediately available for comment.

The US firm had been rumoured to have expressed an interest in purchasing the Ygia Polyclinic in Limassol, where the majority shares are owned by a Ukrainian investor.

As such, it appears Limassol and Nicosia are garnering the most interest with the majority of investments targeting the capital.

Meanwhile, Israeli hospital Hadassah is set to open its doors in Lakatamia in the future, with the same company aiming to open a diagnostic centre in Limassol.

At the same time, yet another hospital in Strovolos is slated to join Gesy in the near future, which is owned by British interests.

According to health ministry figures published in Politis, investments in the health sector have doubled in the past two years.

Between 2021 to the current period, there have been 28 applications for new hospitals and health-related infrastructure.

Two of these have been approved and efforts to construct two new hospitals are underway – though details were not immediately available.

There were 13 applications in 2022 from foreign investors seeking to invest in Cyprus’ health sector, and 15 applications in 2021.

In 2020, the applications amounted to seven, and there were four in 2019.

In October last year, the commission for the protection of competition said it has the authority to insert safeguards in acquisition deals in the private sector, or to outright deny a takeover if it deems a buyout might lead to excessive concentration.

The association of private hospitals (Pasin) agreed that a monopoly or oligopoly would adversely impact smaller healthcare facilities, but did not share concerns over the creation of a monopoly in healthcare because of the existence of public hospitals.