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Annual Report 2019 Report Annual ANNUAL REPORT 2019 REPORT ANNUAL PIHLAJALINNA VUOSIKERTOMUS 2019 PIHLAJALINNA BUSINESS AND RESPONSIBILITY PARTNERSHIP REPORT BY THE AUDITED FINANCIAL INFORMATION FOR 2019 STRATEGY BOARD OF DIRECTORS STATEMENTS SHAREHOLDERS Pihlajalinna in brief ....................... 2 Partnership .................................. 23 From the Chairman of Impact maps ..................................... 26 the Board of Directors ..................4 Board of Directors ......................30 REVENUE / M€ From CEO ....................................... 5 Management Team.......................31 Operational environment ............. 6 Financial year 2019 Timeline 2019 Business and strategy .................. 8 Report by the Board 518.6 Digital and remote services ..................10 of Directors........................................ 33 (2018: 487.8) 22 Jan Customer groups ...............................12 Financial statements ...................... 55 +6.3 % Pihlajalinna acquires the Fit1 fitness Responsibility .............................. 14 Auditor’s report ...............................101 centre chain 6 Feb Quality and safety of care ............. 15 Information for shareholders ... 105 Economic responsibility ................. 16 Pihlajalinna increases its ownership in Kolmostien Terveys Responsibility for personnel ......... 18 2 May Data protection and ADJUSTED OPERATING information security .........................21 Pihlajalinna health application launched for Annual report 2019 PROFIT / M€ use by municipal customers 6 May 20.8/4 % Pirkanmaa hospital district and Pihlajalinna agree on a partnership (2018: 14.4 M€ 3.0 %) 8 May target over 7 % Heart Hospital and Pihlajalinna sign a letter of intent on cooperation 17 May Pihlajalinna organises a Capital Markets Day NET DEBIT / EBITDA 17 May Pihlajalinna acquires the City of Raisio’s 3.5 occupational healthcare provider Aurinkoristeys PIHLAJALINNA 31 Dec 2019 1 Jun Pihlajalinna in brief BUSINESS (31 Dec 2018: 3.9) Pihlajalinna acquires Kouvolan Työterveys Pihlajalinna is one of Finland’s leading • Headquarter in Kehräsaari, Tampere LOCATIONS 2019 target below 3 providers of social, healthcare and well- • Extensive range of services offered Private clinic, Surgical operation, 3 Jun being services. The Group’s customers to both private and public sector Dental clinic, Pihlajalinna signs a cooperation include private individuals, businesses, customers Occupational healthcare agreement with Pohjola Insurance insurance companies and public sector • Strong geographical presence Social and healthcare outsourcing 17 Jun entities, such as municipalities and joint in Pirkanmaa, South Ostrobothnia, Residential service municipal authorities. Central Finland, Pohjois-Savo Fitness centre ADJUSTED Pihlajalinna commences preparations for Responsible doctor EBITDA / M€ an efficiency improvement programme and and the Helsinki Metropolitan Area and remote service launches cooperation negotiations PIHLAJALINNA • Aims to be the most valued 17 Jun • Market leader in the complete healthcare and social services 55.1 outsourcing of social and company in Finland (2018: 45.9) Pihlajalinna opens a private clinic in Vaasa healthcare services in Finland • Listed on the main list of 1 Aug • The Group pays all of its taxes Nasdaq Helsinki in 2015 Pihlajalinna opens a private clinic in Rovaniemi to Finland 15 Aug Cooperation negotiations are completed, Pihlajalinna model EARNINGS efficiency improvement measures are initiated, Pihlajalinna appoints a new Management Team The Pihlajalinna operating model and its PER SHARE / € social effects culminate in our way of 22 Oct working in cooperation with munic- EFFECTIVE CARE PUBLIC SECTOR 0.15 The new Marjapihlaja care home ipalities. When a joint venture of ECONOMY (2018: 0.16) opens in Laihia Pihlajalinna and a municipality is • Tax revenue locally • Savings for municipalities responsible for producing the High quality, Prevention • A share of the joint venture 1 Nov less municipality’s social and health- profits to municipalities complications Pihlajalinna opens a private clinic in care services on a long-term the Sello shopping centre in Espoo agreement, the company has CUSTOMERS • Equal access a strong incentive to promote to care NUMBER OF 5 Nov health and to adopt effective • Wellbeing PERSONNEL Mehiläinen announces a recommended operating models. Approxi- Rapid access cash tender offer for all shares in Pihlajalinna mately 44 per cent of Pihlajalin- Strong primary to care care, no LOCAL 5815 na’s revenue comes from complete 31 Dec unnecessary COMMUNITY 31 Dec 2019 referrals outsourcing agreements for munici- • The joint venture (31 Dec 2018: 5,850) Pihlajalinna increases its ownership creates jobs pal social and healthcare services. The Experienced in Kuusiolinna Terveys and • Maintaining vitality healthcare personnel Mäntänvuoren Terveys average agreement period is 10+5 years. • Maintaining local services 2 3 PIHLAJALINNA BUSINESS AND RESPONSIBILITY PARTNERSHIP REPORT BY THE AUDITED FINANCIAL INFORMATION FOR 2019 STRATEGY BOARD OF DIRECTORS STATEMENTS SHAREHOLDERS Pihlajalinna is a force of renewal ”in Finnish Pihlajalinna has healthcare. expanded its ”network of clinics in recent years. From the Chairman of the Board of Directors From the CEO he planning of the structural time, private sector units are required to tageous to customers, personnel, share- reform of healthcare and social have premises that are of substantially holders and all Finns. The realisation of the services continues, and Finland’s higher quality than the public sector. merger will create a company in Finland he year 2019 had several phases. rapid access to care. We consider this a ment with Pohjola Insurance Ltd in May. current government aims to The discussion in 2019 was charac- that has sufficiently broad shoulders to The healthcare and social wel- good objective, and achieving it will only Based on a highly successful pilot project, Tsubmit a proposal to the parliament by the terised to an exceptional degree by the serve the demanding client organisations fare reform ran aground, but the be possible if the services and operating Pohjola Insurance approved Pihlajalinna end of 2020. If implemented, the reform juxtaposition of the private and public sec- of municipalities, hospital districts and new government again included models of all social and healthcare ser- as a national service provider under its will require amendments to approximately tors and new public structures instead of a the future counties as well as export Finn- Tit in its government programme. Pihlaja- vice providers are utilised. multi-supplier model. We aim to further a hundred laws and decrees. If the planned focus on ensuring that customers receive ish social and healthcare expertise to the linna has expanded its network of clinics Pihlajalinna aims at being a partner strengthen the cooperation with insur- reform is put into action, it is scheduled to the best possible care and that the legally international market. Together, we have the in recent years also with an eye on the to the public sector. Accordingly, we ance companies and improve Pihlajal- take effect in 2023. Uncertainty continues stipulated number of various healthcare opportunity to provide treatment and care healthcare, social welfare and regional signed cooperation agreements with the inna’s market position as a nationwide to be created by the potential problems professionals is available in the first place. of even higher quality for the needs of an government reform. With the efficiency Hospital District of Pirkanmaa and the partner of insurance companies. associated with the planned reform with One good example of this is the planned ageing Finland. improvement programme we started in Heart Hospital, for example. The cooper- Our national network of clinics puts respect to the Constitution of Finland and increase of personnel in primary care by The tender offer by Mehiläinen comes August, we reassessed the network of ation took concrete shape in a new ser- us in a strong position in large tender- assigning a special position to the Helsinki one thousand physicians. Completing med- at a time when Pihlajalinna has managed clinics and also reviewed the resources vice for evaluating cardiovascular symp- ing processes for occupational health- Metropolitan Area. We still hope that the ical school takes a minimum of six years to overcome the challenges of the past allocation of our operations from the per- toms, the pilot phase of which began in care services. We are also able to provide reform will go through. Our society needs and, roughly speaking, one physician in couple of years and looks confidently to spective of profitability. We closed a few February 2020. highly comprehensive services to private it. In many municipalities, the prolonged ten will end up working permanently in a the future. When I started Pihlajalinna in small clinics, but also opened new clinics Pihlajalinna increased its ownership in customers and insurance company cus- state of uncertainty has clearly put a stop public sector health centre. This means that 2001, my aim was to create a company that during the year as planned in provincial municipal joint ventures in 2019. Pihlaja- tomers. In locations where we do not to development and essential investments. achieving the goal would take at least six will challenge the highly traditional social centres, such as Rovaniemi and Vaasa. linna now owns 90 per cent of Kuusiolinna yet have a physical presence, we can At the
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