12 Mar 2013 07:14
MD Medical Group Investments Plc
Start of construction of a new hospital at Ufa
12 March 2013 - MD Medical Group Investments Plc (LSE: MDMG), Russia's leading provider of private women's and children's healthcare, yesterday held a ground breaking ceremony for a new, state-of-the-art, purpose-built hospital in the Bashkortostan capital of Ufa being constructed by the Company.
MD Medical Chairman, Dr Mark Kurtser and President of Bashkortostan Republic, Mr Rustem Khamitov, marked the start of construction at the 32,000 square metre hospital following receipt of construction permits on 11 February.
The hospital will house a 3,000 unit delivery suite alongside an extensive fertility treatment centre and new women's and children's healthcare services with 95 in-patient beds and capacity for 235,000 outpatient admissions per annum. At optimum capacity, the hospital will employ 585 mostly medical staff who will be fully trained in the high standards of care and clinical excellence commensurate with a Mother and Child hospital.
Total investment in the project is expected to be RUB 3.5 billion and will be financed from MD Medical's own funds. The project is due to complete in late 2014.
The region of Bashkortostan represents an attractive opportunity for MD Medical. With a population of 4.4 million, of which 1.1 million reside in the capital city of Ufa, it is among Russia's top 10 regions in terms of gross regional product. The region enjoys a higher than average birth rate of 13.7 resulting in approximately 57,000 deliveries per annum. It is currently underserved by maternity services with only 690 beds and no private maternity hospital in the region.
Commenting on the development, Dr Mark Kurtser said:
"The start of construction of our third hospital, in Ufa, represents a significant milestone for MD Medical as we roll-out our successful hospital and clinic network across Russia's largest and fastest growing regions. Our experience with our existing Mother and Child clinic in Ufa has been extremely positive and, together with the active co-operation of the region's local authorities, gives us confidence in the need and scale of demand for a women's and children's hospital to serve the local community."
As previously indicated, MD Medical group will continue to expand its business operations into the Russian regions. For example, in addition to the hospital at Ufa, the Company is considering the region of Nizhniy Novgorod, with a population of 3.3 million and approximately 36,000 deliveries per annum. The local authorities in Nizhny Novgorod have already agreed to grant the Company the necessary license for the land where construction would take place. Detailed plans for Nizhniy Novgorod will be disclosed by the Company in full accordance with market practice only after internal approval of the project parameters.
ENDS
For more information about MD Medical Group, please visit the Company's web site at www.mcclinics.com, or contact:
M:Communications |
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Tom Blackwell / Anna Yarmarkova - Moscow | Tel: +7 495 363 2842 |
Sarah Macleod / Hollie Vile - London | Tel: +44 20 7920 2300 |
mdmg@mcomgroup.com |
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About MD Medical Group
MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages ten modern healthcare facilities, including two hospitals and eight outpatient clinics in Moscow, St. Petersburg, Ufa and Perm. In addition, two franchised outpatient clinics operate in Kyiv and one franchised outpatient clinic in Irkutsk.
The Company's main medical facilities are the Perinatal Medical Center (PMC), a 250-bed medical centre, which opened its doors in 2006, and Lapino hospital, a 182-bed medical centre, which opened at the end of 2012. In 2012, there were 3,253 deliveries in PMC and Lapino. The number of outpatient treatments for 2012 in PMC and the Company's outpatient clinics totalled 422,622.
As of June 30, 2012, the Company employed 1,461 medical specialists and staff. The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.
Forward-Looking Statements:
This press release contains forward looking statements, which are based on the Company's current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and it should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company's ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.
No statement in this press release is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. Each forward looking statement relates only as of the date of the particular statement.