The pandemic has increased revenues of private health sector by almost 20%

2021-05-29

Business didn’t miss a chance to make more money

While struggling against coronavirus, revenues of private clinics and laboratories increased by 18.6% and amounted to almost 89 billion rubles, Kommersant reports, citing data from the Vademecum analytical center. The expenses of Russians for treatment have increased by more than 25%, and the cost of service in commercial hospitals reaches 400-700 thousand rubles.

The leader in terms of revenues was Medsi25 billion rubles, and in terms of the dynamics of growth in turnover, Medinvestgroup took the lead – plus 49% (up to 12.3 billion rubles).

Top 5 Russian clinics by revenue / Source: Vademecum Analytical Center

The source of revenue growth is the availability of testing and treatment facilities for COVID-19 at health care chain hospitals, as well as the doctors’ being able to attend to their patients. Treatment of patients with coronavirus in 2020 has become one of the most expensive chargeable services.

Delivery of planned health care services for other medical conditions, including medical treatment at the expense of the Federal Statutory Health insurance fund, also brought additional revenues to the private medical companies. The repurposing of state medical institutions for the patients with COVID-19 treatment naturally led to switching patients to private clinics.

Private medical laboratories have also increased their income:

Hemotest in 2020 increased its revenue threefold – up to 17.6 billion rubles.
Citilab increased its turnover by 95%, to 5.9 billion rubles.
Invitro – by 20%, up to 25 billion rubles.

As the research shows, it’s not just the manufacturers of personal protective equipment and drugs that have used a chance to line their pockets at the expense of ordinary people. After all, the “streamlined” public health care system pushed patients into the “welcoming embrace” of the owners of private clinics and laboratories.

It is quite obvious that private hospital treatment worth hundreds of thousands of rubles is not supposed to be given to regular turners, builders, drivers, teachers, and couriers. They cannot just afford medical service at that price.

It doesn’t really matter for business owners how to make money. If the opportunity comes, they will be doing their best to drain the purses of those in need of medical care. After all, the pandemic won’t last forever. So they should try not to miss out on a great chance. That is the law of the market economy.

If one day the working people take power into their own hands, if they abolish privately owned means of production, then there will be no profit mongers who get rich out of someone else’s misfortune. Then there is no need to scrape and borrow to give medical care to severely ill individuals. But for that to happen, there will be the need for the consolidated efforts of the ordinary people’s overwhelming majority.