The Dobrobut medical network will build a rehabilitation center supported by the U.S. International Development Finance Corporation (DFC).
According to the network’s press release, a letter of intent with Dobrobut was signed by DFC head Scott Nathan at a meeting of Ukrainian business representatives with U.S. Ambassador Bridgette Brink at the American Chamber of Commerce.
“Dobrobut has become the first private medical company in Ukraine to receive financial support from DFC,” the nurse said, without specifying the amount of investment or timing of the project.
As reported, Vadim Shekman, chief operating officer of the Dobrobut medical network, told Interfax-Ukraine in 2021 about plans to build a crpu rehabilitation center.
“Dobrobut” is one of the largest private medical networks in Ukraine. In company portfolio there are 17 medical centers in Kiev and Kiev region, first-aid service, dentistry and drugstores. Medical centers of network provide services for children and adults on more than 75 directions. Annually Dobrobut`s specialists carry out more than 7 thousand operations. The network has more than 2,800 employees.
Since the beginning of the war thanks to the cooperation with the international charitable organizations Direct Relief International, Children of War Foundation, International Medical Corps and University of Miami Global Institute, and thanks to the work of Dobrobut Foundation network clinics that continued their work even during the war, a significant part of medical services for months were free of charge.
Ukrainian private clinics in blackout conditions find opportunities to continue their work and provide medical services to citizens, results of a survey conducted by Interfax-Ukraine.
For example, the private ophthalmology center of family ophthalmology Zorkoclinic noted that since the beginning of full-scale hostilities the clinic has continued to work, providing people with ophthalmic care wherever possible.
“Blackouts really hurt us because it’s impossible to work effectively in a blackout. Most of the equipment has to be plugged in. Most, but not all, so we have completely revised the logistics of our customers and agreed on a certain procedure”, – said in Zorkoclinic.
It was explained that during blackouts the clinic treats patients who can be treated without electricity, in particular those with inflammatory eye diseases, eye injuries, as well as those who need to monitor the intraocular pressure and fundus examinations, because the equipment required for this purpose runs off-line on batteries. In addition, the clinic is developing an online consultation service.
At the same time, Zorkoclinic reported that they plan to connect their own generator at the end of November, as there is not enough battery power for full operation.
The main problem faced by the clinic’s physicians during the blackout was the lack of resources for the urgent purchase of everything necessary to establish an autonomous system of work, coordinating the connection of the generator to the common system and the lack of communication, as well as the provision of heating and water.
“The clinic rooms are electrically heated, so it is currently quite chilly in the rooms. We are considering installing large thermoses so that warm water is available all the time for both staff and clients. We buy water for drinking, as always, but the technical water should be kept at the ready”, – they explained to the agency.
They also noted problems with communication, to solve which helped the Internet provider, whose services are used by the clinic, providing a continuous connection to the Internet.
“While we understood a clear schedule of outages, we carefully planned the appointments with the schedule in mind. Now we very much agree with clients that we will call them as soon as the lights come on. This is very disciplined everyone, and clients are sympathetic to this, “- stressed in Zorkoclinic.
In turn, the Medical Group of Companies (MGC) Adonis said that, in particular, their clinic in Sofievskaya Borschagivka in Kiev is working in normal mode and receives patients according to the schedule, and a maternity hospital takes women in labor around the clock. At the same time, planned and emergency hospitalization and urgent care continue.
Adonis noted that the clinic has an autonomous power supply system, so there is light in each unit 24/7, which allows patients to continue inpatient care even during a power outage.
“At first, because of the blackout, we had to deal with a number of organizational issues urgently, such as delivering technical and potable water and finding fuel for the generators. But now the branch has a large inventory and is ready for any calls of the present. The clinic is stocked with everything we need. Therefore, our and the patients are in comfortable conditions, have unlimited access to drinking water, have the ability to charge their gadgets, “- commented in the clinic of the problems faced by doctors because of blackouts.
At the same time MGC Adonis branch on Podol also works 24/7, is provided with water, and a generator works in case of power outage. All kinds of services are provided there, such as consultations, diagnostics, laboratory tests, surgical interventions, in-patient department and ambulance service.
Adonis on Osokorki also works in the normal mode and accepts patients according to the schedule. The cryobank and the embryological laboratory in the IVF department of the clinic are additionally provided with stable backup power supply, but currently the ultrasound diagnostics does not work during power outages.
MGK Adonis noted that the clinics are provided with generators and the needs of the clinics are covered by 100%. In addition, there are separate power sources for both the outpatient and surgical units and the embryology laboratory. Surgical and inpatient medical care at Adonis is provided in the branches, which operate 24/7.
That said, Adonis pointed out that when dealing with power issues, they “found themselves in a strange situation where the local housing community was blocking the installation of additional power generators.”
“We found a compromise solution and are now in the process of setting up a generator that will supply our patients’ needs, including surgical patients, 100 percent. The clinic is equipped with everything we need. Our patients are comfortable, have unlimited access to drinking water, and can charge their gadgets. Heat is supplied centrally,” the company said.
In turn, the medical network “Dobrobut” reported that as of November 29, most of its 16 medical centers are equipped with generators, and some clinics are still working on installation of battery power.
Both of Dobrobut’s hospitals (on Semya Idzikovskikh St. and Lubomir Guzar St. in Kiev) have autonomous power sources, and their patients continue to receive all necessary medical care and assistance.
“We continue to provide all types of medical care. In particular, you can receive any type of medical care round the clock in our large hospital at 3 Idzikovskikh St., where even in the absence of power supply the hospital, admission department, intensive care unit, surgical operating rooms continue to work and outpatient care is provided. Instrumental diagnostic equipment, including MRI, CT, ultrasound, as well as laboratory equipment, i.e. it is possible to make tests,” – the company said.
At the same time, in other clinics of the network, even during the blackout period, outpatient reception continues, laboratory tests can be done, and in some units it is still possible to make ultrasound and other available instrumental diagnostic services.
At the same time, the clinic stressed that in unpredictable situations, when, for example, the generator does not start, physicians warn patients about the situation and other possibilities of the network clinics.
“Before the visit, you can call the call center “Dobrobut”, and in case there is no connection, but there is access to the Internet, we have created electronic boxes, which can be used to make an appointment or ask a question. If there is no connection at all, you can simply come to any of the Dobrobut medical centers.
That said, even during alarm and curfew times, Dobrobut continues to have emergency care available.
“All clinics have an ample supply of drinking water, Dobrobut coffee shops continue to operate, where you can buy hot tea and coffee, as well as snacks with warm food,” the nurse specified.
The company also reported on its plans to soon open a large hospital on the left bank of the Dnieper River in Kiev, where an in-patient department will operate and a powerful generator will be installed to cover all medical needs of the medical center. However, the company noted that under conditions of constant stabilization and emergency shutdowns, it is quite difficult to plan and carry out technical work on the installation of generators. Accordingly, installation work takes longer.
The Leleka Medical Center, when asked by Interfax-Ukraine, said that their center continues to operate from the generator, to which all critical units are connected, so there is water, heat and light.
“We are provided with everything: both heat and water due to engineering system solutions, which was thought out back during construction in 2015. We provide all medical services as usual. There are generators that allow us to continue working, conducting consultations, taking tests, diagnostics, surgical interventions, deliveries, resuscitation assistance. Medical equipment is working and food is being prepared,” the clinic reported.
The main problem associated with the blackout is the high cost of fuel for the generator. “It’s more expensive than electricity,” the medical center explained,
“There are cell phone and Internet outages during blackouts that we can’t affect. But it doesn’t affect patient safety, it just adds some service inconvenience,” the clinic clarified.
Blackouts, DOBROBUT, KIEV, Private clinics, Zorkoclinic, АДОНИС, Лелека
The Dobrobut medical network invested more than UAH 300 million in equipment in 2020, plans to increase the volume of investments in 2021, chief operating officer of the network Vadym Shekman has said.
“We want our doctors to work on high-quality equipment. In 2020 we invested more than UAH 300 million in equipment, in 2021, I think, there will be even more,” he said in an interview with Interfax-Ukraine.
He noted that the shareholders of the company decided not to distribute dividends.
“The company does not withdraw money, we invest all the money that Dobrobut earns and additional investments in development. Most likely, we will not slow down this pace in the next 3-4 years,” he said.
The Dobrobut medical network begins expansion in the regions, Ihor Mazepa, the founder and CEO of Concorde Capital, has said.
“The goal is to build a medical ATB. We are going beyond Kyiv and starting regional expansion,” he told Forbs.
Mazepa also said that capex for Dobrobut for the next five years will amount to $200-230 million.
He predicted that Dobrobut will earn $20 million of EBITDA in 2022 and the company’s value during this time “should grow to $200 million.”
“Dobrobut annually grows in sales by 40-45%. Our bet, which we placed on medicine five years ago, is beginning to be seriously paid off. I hope that after some time this business will cost more than $500 million,” he said.
In general, Mazepa estimates the Ukrainian medical market at $8 billion.
“The state still dominates in medicine. But the future belongs to private companies, and in five years they will come to the fore,” Mazepa said.
The Dobrobut medical network (Kyiv) has opened a dermatology and cosmetology center at the premises of one of the centers of the Doctor Sam medical network, which Dobrobut acquired at the end of May 2020.
Dobrobut told Interfax-Ukraine that the center of dermatology and cosmetology was opened on November 9. It will provide both consulting services for dermatologists and cosmetologists, and hardware diagnostics services.
Dobrobut did not announce the volume of investments in the opening of the center.
Earlier, the Dobrobut medical network announced plans to open a medical cosmetology center in the premises of one of the centers of the Doctor Sam network acquired by it in the Holosiyivsky district of Kyiv, which will develop the direction of cosmetology based on deep medical expertise.
Emerging Europe Growth Fund III, LP (EEGF III) of Horizon Capital has acquired a minority stake in a leading private medical chain in Kyiv city and region – Dobrobut, the company reported on Wednesday.
“Our plans require investment and expertise. Horizon Capital’s capital, knowledge and experience are pivotal in supporting our ambitious strategic plans,” Oleg Kalashnikov, CEO of Dobrobut, said.
According to him, in the nearest future Dobrobut will open another medical facility in Kyiv, 10,000 sq m, which will offer top-notch surgery, oncology and cardiology services.
Horizon Capital’s Founding Partner and CEO Lenna Koszarny said that Horizon Capital’s entry into this strategic sector, together with the backing of our global institutional investors, will play a significant role in the development of healthcare in Ukraine, as it brings capital, transparency, world-class equipment and best practices to this industry.
The participants in the transaction do not disclose its terms, however, Kalashnikov said that “it is not about selling part of the business, this deal is about increasing capital and supporting growth.”
“We have ambitious plans to further develop the company, including opening new clinics, expanding the scope of medical services offered and mastering new skills,” he said.
At the end of March, the Antimonopoly Committee of Ukraine reported that Cypriot Dealbeta Investments Limited, created by Emerging Europe Growth Fund III (EEGF III) managed by Horizon Capital, jointly with an individual-citizen of Ukraine, plan to acquire a controlling stake in Cypriot Satumco Limited, the owner of Dobrobut.
In January 2019, The Antimonopoly Committee of Ukraine began probing into the acquisition by Cypriot-based Satumco Limited, the owner of Kyiv’s largest private medical chain Dobrobut, of the Boris Clinic, one of the oldest private clinics in Kyiv.
The Dobrobut Medical Center was established in 2001 and previously included branches in Donetsk and Yalta, but now its assets are located in Kyiv and it grew to a large chain. In particular, it currently includes an emergency station, children’s clinics on the right and left banks of Kyiv, clinics for adults on the right and left banks, a hospital for adults and children, pediatric and adult surgery departments, a medical diagnostic center, the Dobrobut Oncology Center, as well as the center of clinical neurology, neurorehabilitation and rehabilitation medicine.
In January 2018, a group of investors from the Concorde Capital investment company and shareholder in the Luxoptica chain of optical stores Oleh Kalashnikov acquired 80% of the Dobrobut chain from UBG (both based in Kyiv). The owner of the UBG corporation was MP Ruslan Demchak (Bloc of Petro Poroshenko parliamentary faction), who retained a 20% stake in the chain.
Currently, according to the public register, Satumco Limited owns 99% in many companies of the chain (Dobrobut Emergency Aid LLC which revenue in 2017 was UAH 38.5 million, Dobrobut Polyclinic Center with UAH 347.8 million, Dobrobut Statsionar Center (in-patient facility) with UAH 48.9 million, Dobrobut Medical Center for Children with UAH 73.6 million, Dobrobut Dytynstvo (Childhood) Center with UAH 22.2 million) and its beneficiaries are owner and head of Concorde Capital Ihor Mazepa and Luxoptica shareholder Oleg Kalashnikov.
In January 2019, Horizon Capital announced that Horizon Capital created the largest equity fund in Ukraine over the past 10 years: EEGF III with $200 million.
Horizon Capital was established in 2006. It manages private equity funds Western NIS Enterprise Fund (WNISEF, established in 1994 with a seed capital of $150 million), Emerging Europe Growth Fund, L.P. (EEGF, established in 2006 with a seed capital of $132 million) and EEGF II (EEGF, established in 2008 with $370 million seed capital). The money of these funds is invested in projects in Ukraine, Moldova, and Belarus.
