ANNUAL REPORT 2019 Osion Nimi Year in Brief ANNUAL REPORT 2019
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ANNUAL REPORT 20 19 ANNUAL REPORT 2019 Osion nimi Year in brief ANNUAL REPORT 2019 Part of Finnish society for 110 years On 6 November, Mehiläinen celebrated its 110th anniversary. A forerunner in its field, Mehiläinen still represents the same spirit of entrepreneurship and customer-driven approach that characterised the founding physicians’ values 110 years ago. he story of Mehiläinen began in 1909, when four physicians with entre- preneurial spirits founded the first TFinnish-language private hospital in Huvilakatu, VALUES City of Helsinki. The name for the hospital was found in the national epic Kalevala: Mehiläinen, Skills and knowledge a mythical creature, retrieved healing nectar Caring and responsibility and blew life into Lemminkäinen, who lay dying Partnership and on the shore of the Tuonela river, the river of the underworld. entrepreneurship The story of Mehiläinen is part of the story Growth and development of independent Finland. For instance, during the civil war, the future Finnish president P. E. Svinhufvud sought refuge at Mehiläinen, hiding under a hospital bed and pretending to be a patient. In 1932, Mehiläinen moved to its current premises in Töölö, Helsinki. During World War II, the Red Cross had a military hospital at the same premises. Soon after the war, the Sickness Insurance Act entered into force, and Mehiläinen started CUSTOMER to offer physicians’ appointments. Occupational PROMISE healthcare services were started in the 1970s, Ease of interaction and services provided for the public sector were Holistic service offering expanded. Mehiläinen made its first company Table of contents acquisitions in early 1980s, and nationwide Personalised service expansion began in the early 2000s. After Year in brief 2 this, acquisitions were frequently made around CEO´s summary 4 Finland, and the company developed strongly. In 2005, Mehiläinen’s operating system re- Private healthcare services 8 ceived the ISO 9001:2000 quality certification. Public healthcare services 14 At that time, foundation was laid for future digital development by introducing a uniform Social care services 18 electronic patient information system in all units. Digitalisation 22 During the past ten years, Mehiläinen has Corporate responsibility 24 grown strongly and now plays an important role in the Finnish social care and healthcare Quality and effectiveness 26 system. The acquisition of the Mediverkko group Mehiläinen as an employer 28 in 2015 was an important milestone and driver of change. Over the last decade, Mehiläinen’s Key figures and tax footprint 30 network has expanded and now consists of Mehiläinen management 32 over 500 units located all across Finland. 1 ANNUAL REPORT 2019 Year in brief Year in brief ANNUAL REPORT 2019 FEBRUARY Residential care home Kultarusko becomes a part of Mehiläinen’s elderly care services. During the year, 38 MEHILÄINEN’S new residential care homes join YEAR the Mehiläinen care services. JANUARY Hammas Mehiläinen opens a new clinic in Lahti. Four new Hammas Mehiläinen clinics are opened during the year. MARCH Mehiläinen launches a bilingual customer service centre in City of Porvoo. JUNE Mehiläinen hospitals are the first in Finland to APRIL measure the quality and effectiveness of surgical We announce that operations. Mehiläinen will acquire the occupational healthcare services of Pohjola Terveys. JULY MAY 2019 in brief Residents of City of Varkaus Lapinjärvi municipality and and Municipality of Joroinen Mehiläinen establish a care are provided with access to service joint venture. Digital Clinic. Mehiläinen is a well-known and appreciated private provider of social care and healthcare services in Finland. Healthcare AUGUST Characterised by growth and development, the 110th services We announce that Mehiläinen’s anniversary year included many important milestones. revenue exceeded EUR 1 billion 67% during the first half of the year. SEPTEMBER Mehiläinen and optical retail chain Total sales Synsam begin to collaborate. KEY FIGURES distribution Urheilu Mehiläinen and Olympic gold medalist Iivo Niskanen continue their successful co-operation. Co-operation also continues with the Finnish Alpine Ski Team and Freestyle Ski Team. Revenue Total number of customers Number of (EUR million) at Mehiläinen around units over Social care services 1,064.1 1.3 mill. 500 33% Revenue Physician visits produced Number of beds in Number of personnel and OCTOBER NOVEMBER DECEMBER growth by Mehiläinen over care services over private practitioners over A leading private Mehiläinen makes a public An open quality hospital chain in offer to purchase all shares monitoring system, Greece adopts in Pihlajalinna. LaatuKenno, is published on Mehiläinen’s website. 16.2% 2.9 mill. 6,800 21,800 Digital Clinic. Mehiläinen celebrates its 110th anniversary on 6 November. 2 3 ANNUAL REPORT 2019 CEO’s summary CEO’s summary ANNUAL REPORT 2019 ” We invest in high quality, knowledge- based management and new service innovations in our operations. ing and treatment paths to our We accomplished our goal occupational healthcare customers of providing our customers with that are aimed to improve their health quick access to high-quality public and prevent the onset of diseases. healthcare services. According to the In addition, we invested in quality assurance statistics of the City of Espoo, most customers and development through digitalisation in our care of the city’s Oma Lääkärisi health centres, managed services and child welfare services by introducing by Mehiläinen, have had access to a physician’s ap- periodical self-monitoring surveys, for example. In pointment within a week. addition, our units carried out several self-monitoring We opened a variety of new social service units visits and audits in the last year. and performed related mergers and acquisitions in the last year. Mehiläinen’s services for people with special needs now include the housing services for people Internationalisation driven by digital services Janne-Olli Järvenpää undergoing psychological rehabilitation provided by The future of healthcare is digital, and it is our intention Provesta and its 25 residential care homes in various to be a pioneer both in Finland and the international locations around Finland. We also founded the first market. Our goal is to establish the foundation of Finn- joint enterprise in the care sector in co-operation with ish export in the healthcare industry. We took the first the Municipality of Lapinjärvi. CEO’S SUMMARY step by selling a licence to the Digital Clinic platform There are already over 500 units of Mehiläinen in and the online booking system developed by us to the various locations around Finland. Our most important leading private hospital chain in Greece. resource for providing high-quality services are our An anniversary full of progress The popularity of Mehiläinen’s digital services grew skilled experts. We will continue to develop our exper- rapidly in the last year. There are more than 785,000 tise in the following year through supervisor coaching, registered individuals in the OmaMehiläinen service, personnel orientation and training and providing a and the services of the Digital Clinic have been con- variety of career paths. ear 2019 was a remarkable year in the his- 16.2% last year. Our underlying EBITDA, excluding the tacted more than 170,000 times. We introduced the One of the most significant events of last year was tory of Mehiläinen in many respects. On 6 effect of the IFRS 16 standard, grew by 15.8% to EUR Digital Clinic to public healthcare service customers in submitting an offer to buy the social and healthcare November, Mehiläinen celebrated its 110th 125 million. Our relative profitability remained at the the Länsi-Pohja area, Municipality of Siikalatva, City of service provider Pihlajalinna. If the transaction goes Yanniversary as an integral part of Finnish society. We same level as in the previous year. Mehiläinen’s revenue Varkaus and Municipality of Joroinen. through, the expertise and service network of Pihla- commemorated this milestone together with our cus- is expected to continue increasing in 2020 through jalinna will become part of Mehiläinen, providing our tomers, partners and the personnel. During the year, organic growth and mergers and acquisitions. customers with an even more extensive range of ser- A successful year in all business activities our Net Promoter Score (NPS) index, an indicator of vices. Concluding the transaction requires an approval customer experience, reached a record high of 89, and Thanks to our satisfied customers, all the business from the appropriate authorities and a positive signal Effective care and high standards shows that our customers are even more satisfied with areas of Mehiläinen grew at a double-digit rate in the from the shareholders. their experiences at Mehiläinen than before. We invest in high quality, knowledge-based manage- last year. We launched a new Children’s Mehiläinen ment and new service innovations in our operations. concept in our Medical Clinics business area. We Thank you very much! We want to offer our patients health benefits and safe also concluded a new partnership with the Moomins. Strong financial performance treatment and care. Hammas Mehiläinen was integrated more closely to I wish to express my warm gratitude for all our cus- Over the past ten years, Mehiläinen has become the We carried out a variety of significant measures in the medical clinics. The number of private customers tomers, partners and the professionals of Mehiläinen market leader of the industry. As a first in the history order to achieve these goals in the last year. Mehiläinen’s of our Working Life Services grew steadily beyond for a spectacular year 2019. of Finnish private social and healthcare sector, our hospitals were the first in Finland to monitor the quality 460,000 customers. The growth was brought on by revenue in 2019 surpassed the one billion euro mark and effectiveness of orthopaedic surgeries and the incorporating Pohjola Terveys occupational healthcare with a result of EUR 1.06 billion. Our revenue grew by outcomes of treatment.