Reshetnikova I., Burlakova O., Kasian S.
Oles Honchar Dnipropetrovsk National University, Ukraine
INVESTING IN MEDICINE IS THE GUARANTEE OF HEALTH AND PROSPERITY
Throughout its existence, mankind has struggled with the disease. Terrible diseases, which destroyed millions of lives, were defeated. However we still see a large number of incurable diseases. All because of lack of funding into the medical sphere.
Today, despite the reform of the Ukrainian economy and its transition to a market basis, the health sector remains outside the process, so the medical business in Ukraine is not the most favorable object for investment. And although many doctors dreaming of such a business – whether on a large hospital or a small private practice, but attempts to realize their dreams are not always crowned with success. The pharmaceutical market is in a better position, but even here the pace of development does not pale in comparison with the developed countries. The majority believes that the main problem lies in the imperfection of the legal and tax systems. However, professionals in the field of economics and finance, especially the investors themselves, which depends on the success of the company, believe that the medical business is very often not ready for the development, focusing on the actual medical work and not paying due attention to economic, financial and marketing aspects. As a result, a privately held company in healthcare, as a rule, only vaguely resembles the business model and may not be attractive to investors. There is no doubt in this respect, Ukraine has great potential, but the issue is that health care professionals should be aware of the marketing activities to attract investors and prospective development of the business.
Major global challenges of investing in any business can be reduced to two points. First of all, it is the lack of state development strategy. In this regard, any company intending to invest in Ukrainian businesses, faces with the impossibility of calculation and evaluation at least approximate its prospects in the context of the state as a whole. The second global problem is the lack in our country the rule of law, which entails a whole series of serious obstacles to the development of civilized business. The lack of legal protection of property rights, inefficient process of corporate governance, inadequate legal protection of the legitimate interests of private business, etc. – all these lead to the fact that companies are faced with certain collisions in the law can not protect their interests, even in court. A serious problem is the unpredictability of the taxation system, as laws to regulate this process, unfortunately, do not work too often and rapidly changing. Also, today in Ukraine there is no any effective system for protecting intellectual property rights, which is especially important for the health sector and pharmaceutical market in particular.
Senior Economist, "SigmaBlazer" Oleg Ustenko, considering the medical business in the context of the overall market development, presented an overview of the investment climate in Ukraine and the possibilities to improve it.
The fact that the current investment in the Ukrainian business is relatively small. It has its positive side – this means that our country has some great potential and vast opportunities for the development in this direction. It should be noted that in recent years, direct investment in the Ukrainian business often come from the European Union, in connection with nothing in the development of the market should focus on European standards and the interests of potential European investors, which is a priority for the European Business Association.
Managing partner of the company "PricewaterhouseCoopers" Jorge Intriago presented a list of the major wishes of investors, paying attention to one of the common misconceptions, according to which the investor is active only in the most stable market, and its reform worsens the investment climate. Mr. Intriago emphasized that the potential investor is important not so much the stability of the market, as the predictability of the direction of its development. In other words, the investor needs to know what to expect from the business which it invests, to understand which direction it reforms.
Thus, in the near future in the pharmaceutical market of Ukraine it’s expected more aggressive consolidation, which resulted in the leading companies will become even more attractive and open targets for various types of investment.
Director General of the private obstetric clinics "Isis" Valery Kidon shared their own experiences of private clinics in Ukraine, thus affecting the most current business issue of national health care the development of private medicine.
One of the first private-sector domestic medicine appeared dental institutions today make up about 75% of all private offices and clinics. About 15% of private hospitals this is the diagnostic studies and laboratories. Clinic of therapeutic and preventive profile of the order of 5-10% of private health care companies, and, as a rule, are small rooms rented in major public hospitals. Full-fledged private clinics in Ukraine not more than 50, including large institutions, there are only about 10. Consequently, competition in private medicine in our country is very uneven: great – in dentistry, high – in the diagnostic field, is extremely low – for health care institutions, especially large private clinics. The final until you have to compete not with each other and with government agencies, as public hospital examination and treatment of various patient cost at least 15-20% cheaper.
At present, all private clinics in Ukraine can pass three stages of the development: initial investment, as a rule, limited to lease or office floor in a state institution, in case of success the business is gaining momentum, a private medical business, which proved its right to exist, and the prospects for further development, is large investors and it is developing quite productive. Of course, to implement the last phase to be competent managers, professional financiers, marketers, etc., which could provide potential investors with a clear business model and strategy development. Despite the fact that it is associated with certain costs, another way to success in today's market there, including for medical company. Today, a private medical business in Ukraine has great potential, because, in essence, a private medical practice does not exist. Therefore, the organization, start-up businesses in this area open up vast horizons of opportunity. In addition to the increase in material well-being of the population is constantly growing category of people who prefer the privacy to state medicine. It should be noted also that the public health service, at least in the next few years will not be able to provide a decent standard of medical services for everyone in need of medical care. All of these conditions, despite the many challenges, primarily related to the settlement of private clinics at the legislative level, doing private business in the health sector in Ukraine is quite attractive and promising. Moreover this niche in our country is practically free.