Health in Brasilia is the one that guarantees the lowest profit – 05/27/2023 – Panel SA

Investment banks with relevant positions in healthcare companies did the math and found that the return for companies that set up shop in Brasília is one of the worst in the market.

The federal capital has already been seen as one of the main squares in the area, having attracted, for example, Sírio Libanês and DF Star.

The Kora Group, for example, invested R$ 1.5 billion in the purchase of the Anchieta hospital. Today, the business is worth just over R$700 million, less than half of what he invested, according to a report by one of the banks consulted.

Grupo Santa (the largest hospital network in the Midwest), in turn, has been looking for investors for over a year. Bradesco Saúde has been negotiating the purchase of the group’s hospitals for months, but the hammer has not yet been hammered.

Brasilia attracted investments in health with self-management plans (high standard) to serve public sector bodies, but self-management has glosses (non-payment of some item of the patient’s hospital bill, either for technical or administrative reasons) and high default rates, and not have been making up for losses due to inflation.

All this has discouraged investments by operators and health service providers in the federal capital.

Sírio and Rede D´Or, for example, have been working with margins much lower than those of other markets and the conversion of Ebitda (earnings before interest, taxes, depreciation and amortization) into cash in the federal capital is the lowest Brazil.

When contacted, the Kora Group declined to comment and the Santa Group did not respond until this article was published.

With Diego Felix

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