HUMAN HEALTH FIRST
We created healthy working environment by taking strict precautions during the Covid-19 outbreak for our patients and as well as our healthcare professionals. Thanks to these precautions we continued to to fulfill our responsibilities and minimized adversity.
EFFICIENT AND STRONG PROGRESS
We continued to increase our Operational performance with effective cost discipline. We managed to strengthen our balance sheet by increasing our cash position with different measures and strategies against possible turbulence caused by Covid-19.
PROCESS ACCELERATOR DIGITAL SOLUTIONS
As a result of accelerated digitalization efforts we started to use Robotic Process Automation for our invoicing processes. With this technology we became the first healthcare institution to use this technology in Turkey. Additionally, various other automation procedures are realized in doctor, material, and other various cost management processes.
Boasting powerful brands and a broad portfolio of services aimed at diversified customer segments, MLP Care is Turkey’s largest multidisciplinary hospital group.
MLP Care in Brief
MLP Care, continues its journey that began with Medical Park alongside Liv Hospital brand and VM Medical Park concept strong and stably for the quarter of a century.
Originally founded in 1993 as Medical Park, MLP Sağlık Hizmetleri A.Ş. (MLP Care) continues to extend its reach with the Liv Hospital brand and the VM Medical Park concept for a quarter of
a century. As the largest healthcare group in the industry, MLP Care currently operates 30 hospitals in 15 cities across the country – from Bursa and Elazığ to Trabzon and Antalya. MLP Care leads the Turkish healthcare sector with its hospital facilities, affiliates and more than 13 thousand permanent employees.
Boasting powerful brands and a broad portfolio of services aimed at diversified customer segments, MLP Care is Turkey’s largest multidisciplinary hospital group. The Company’s highly centralized business model supports hospital field operations and central management. MLP Care has a nationwide network that spans the most populated cities in Turkey.
Maintaining strong and profitable growth, MLP Care’s business model is supported by a balanced payer profile. The Company’s executive management team consists of senior professionals who have extensive industry knowledge and experience gained at Turkey’s leading healthcare institutions and enterprises.
Premium
Premium Mass
Middle-Upper Mass
2 Brands and 1 Concept Targeting Different Segments
Balanced Revenue Sources
MLP Care has a unique approach that allows the Company to target diverse segments in the population. The Company provides services in Turkey under two brands and one concept, featuring three pricing strategies: These are the Medical Park and Liv Hospital brands, and the VM Medical Park concept, respectively.
Our Strengths
- Operates in the attractive Turkish healthcare market
- Leader in private hospital provision
- Strong brand recognition and unique business model addressing all price points
- Clinical excellence and world-class service offering
- Superior operational and financial performance
- Outstanding platform for further growth
- Visionary leadership supported by an exceptional management team
Vision, Mission and Values
Vision
We aim to become a reference institution abroad and the most preferred private healthcare service provider in Turkey.
We are going to reach our vision by;
- Keeping our patients as the top priority,
- Achieving measurable and high-quality clinical results,
- Investing in human, infrastructure and technology,
- Being the most attractive institution in which physicians and other medical personnel are willing to work.
Mission
We work to ensure that all people live healthy lives.
Values
- We value people – reliability is our core indispensable principle.
- We make a difference with our services.
- We are committed to scientific methods and continuous improvement.
- We are an agile, goal- and success-oriented team.
- We serve as a model institution with our ethical principles and professional ethics.
Certifications and Awards
- JCI (Joint Commission International) Accreditation Standards
- Ministry of Health Quality Standards
- SRC Center of Excellence Certification
- Runner-up Award in the Healthcare Services Category in the 2019 Service Export Champions Survey conducted by the Service Exporters Association (HİB)
- MLP Care’s Investor Relations practices ranked at the top of the list both in EMEA and in Turkey for all sectors according to a survey by Institutional Investor.
2020 Highlights
MLP Sağlık Hizmetleri (MLP Care), the leading hospital group of Turkey with the Medical Park and Liv Hospital brands, was recognized by Institutional Investor for its successful corporate governance, financial management and investor relations practices.
TL 33.3 Million
Proceeds from the sale transaction of Uşak Hospital was TL 33.3 million.
MLP Care continued its strong growth trend in 2020 despite the adverse effects of the pandemic, increasing revenue and EBITDA to TL 4.0 billion up by 8%, and to TL 1.0 billion up by 26%, respectively.
MLP Care expanded its hospital network with the additions of VM Medical Park Ankara Hospital in March 2020 and Liv Hospital Gaziantep in September 2020.
Despite the worldwide pandemic, MLP Care completed the year with operational success, exiting from Uşak Hospital in line with effective cost management and a growth strategy focused in metropolitan areas with mid- large scale hospitals. On February 8, 2021, the Company strengthened its balance sheet against possible macroeconomic headwinds by converting foreign currency syndicated loans for the years 2022-2024 into TL.
September 2020
Institutional Investor 2020 Awards
MLP Sağlık Hizmetleri (MLP Care), the leading hospital group of Turkey with the Medical Park and Liv Hospital brands, was recognized by Institutional Investor for its successful corporate governance, financial management and investor relations practices.
MLP Care was awarded the special designation of “Most Honored Company” and was the top- ranked among 30 companies in the region. The Company also led in the Healthcare & Pharmaceuticals category.
Sweeping the awards for Turkey, MLP Care was recognized as having the “Best Investor Relations Program” among small-scale companies, based on their market value. Furthermore, MLP Care Chairman and CEO Dr. Muharrem Usta, CFO Burcu Öztürk, and Strategy and Investor Relations Director Dr. Deniz Can Yücel were named “Best CEO,” “Best CFO” and “Best IR Professional,” respectively.
Hospital Portfolio Optimization in 2020
In line with its strategy of expanding in metropolitan areas through large-scale hospitals, MLP Care performed three notable transactions.
March 2020
Acquisition of VM Medical Park Ankara Hospital
The hospital was operational, and no additional capital expenditure was foreseen when the acquisition was executed. MLP Care intends to bring the hospital to its full potential by leveraging MLP Care’s brand strength, operational know-how, experienced physicians, and management staff.
The acquired hospital has a total closed area of 19 thousand square meters. It is located in Keçiören, ranked among Turkey’s three most highly populated districts, with a population of nearly one million people. MLP Care expects the hospital to become one of the top-performing hospitals within the group.
Following the Medisis Hospital acquisition,
MLP Care now owns three hospitals in Ankara, of which the other two are Medical Park Ankara Hospital and Liv Hospital Ankara. The performance of Medisis Hospital is expected to be similar to Medical Park Ankara.
August 2020
Exit from Uşak Hospital
As part of its strategy to focus growth in metropolitan areas with mid-large scale hospitals and optimize its portfolio, MLP Care exited from Uşak Hospital on August 7, 2020. In 2019, the share of the Uşak Hospital in consolidated revenues and EBITDA was 1.4% and 0.3% respectively. Proceeds from the sale transaction of Uşak Hospital was TL 33.3 million.
September 2020
Opening of Liv Hospital Gaziantep
MLP Care opened the new Liv Hospital in Gaziantep on September 28, 2020.
With a total closed area of approximately 40 thousand square meters, 258 beds and 70 policlinic rooms Liv Hospital Gaziantep has started accepting intensive care patients as of September 28, 2020 and began general patient admission on October 1, 2020.
Centrally located and a 20-minute drive from Gaziantep Airport, Liv Hospital Gaziantep is expected to play a major role in introducing the high-quality healthcare services of the Liv Hospital brand to guests from Middle Eastern and Arab countries, as well as from European and Balkan countries.
Key Indicators
MLP Care continued to provide high quality healthcare services in 2020, with strong financial and operational strength.
Main Income Statement Items |
|||
|
2019 |
2020 |
Change |
Revenue (TL million) |
3,704 |
4,015 |
8% |
Operating Income (TL million) |
654 |
870 |
33% |
Operating Income Margin |
17.7% |
21.7% |
401 bps |
Net Profit/(Loss) (TL million) |
56 |
123 |
119% |
Adjusted EBITDA* (TL million) |
834 |
1,049 |
26% |
Adjusted EBITDA* Margin |
22.5% |
26.1% |
362 bps |
Adjusted EBITDA** (TL million) |
814 |
958 |
18% |
Adjusted EBITDA Margin** |
22.0% |
23.9% |
188 bps |
Free Cash Flow (TL million) |
490 |
733 |
50% |
Main Balance Sheet Items |
|||
|
2019 |
2020 |
Change |
Cash and Cash Equivalents (TL million) |
306 |
375 |
23% |
Total Assets (TL million) |
3,914 |
4,572 |
17% |
Equity Attributable to the Owner of the Company (TL million) |
230 |
282 |
23% |
Net Financial Debt (TL million) |
2,066 |
2,117 |
2% |
Net Financial Debt/Adjusted EBITDA |
2.5 |
2.0 |
(19%) |
*Adj. EBITDA is based on Reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) adjusted for one-time (income) / expenses, net and non-cash GAAP provision expenses.
**Adjusted (excluding FX effect of other income/expenses from operating activities)
Message from
the Chairman and CEO
In line with our strategy to focus on mid-large scale hospitals, we added three hospitals to our Group: one in December 2019, in Maltepe, Istanbul; the other two in March and September 2020 in Ankara and Gaziantep, respectively.
Although hospitals around the world mainly provided services for pandemic-related issues this past year, we continue to provide highly complex and vital treatments in a safe environment.
Dr. Muharrem Usta
Chairman of the Board of Directors and CEO
Esteemed Shareholders, Business Partners, and Employees,
We are in a time when, once again, the importance of sustainable, widespread healthcare services at international standards
is highlighted for both countries and humanity
in general. The pandemic has changed our lives in many ways, and we are striving to adapt, changing our priorities, our social lives, our
ways of doing business and our daily routines. Conversely, what does not and will not change is our need for quality healthcare services.
This past year could be described as “extraordinary,” considering our responsibilities for our country and our people. We are the frontline fighters in a collective battle, under the leadership of the Ministry of Health. We have worked diligently and ceaselessly to defend our nation against this virus, and our greatest motivation was the happiness of treating patients and reuniting them with their loved ones.
Committing to human services requires putting the lives and needs of others before our own;
to be a doctor, a nurse or a healthcare worker is considered a sacred duty. In 2020, we witnessed the heroism and dedication of our healthcare professionals at all levels, many of whom remained separated from their families and loved ones to honor their oath. Under extremely difficult and stressful conditions, healthcare workers worked with patience, compassion and devotion. Many healthcare workers fell ill and yet continued fighting for humanity. I thank each and every one of them for their hard work and service.
Unfortunately, this year brought even greater tragedy: some healthcare workers were unable to regain their health. Within the Group, we have lost beloved doctors and a healthcare worker. This past year, I experienced the pain of losing three of my colleagues and a staff member – my friends – to this disease.
We will remember them always, with gratitude: Dr. Lecturer Engin Türkmen, Chief Physician and Internal Diseases Specialist from Medical Park Bahçelievler Hospital. Prof. Dr. Kerim Çağlı, Cardiovascular Surgery Specialist from Liv Hospital Ankara. Dr. Lecturer Hüseyin İlhan Demirel, Obstetrics and Gynecology Specialist from Medical Park Karadeniz Hospital. Nigar Nadir, Patient Care Support Personnel from VM Medical Park Bursa. May they rest in peace.
We lost many healthcare workers outside of our Group as well, and we feel the pain and loss in our hearts. We dedicate our 2020 Annual Report, a summary of our efforts for this past year, to all the healthcare professionals lost, along with our own, to demonstrate our gratitude to them. Once again, I commemorate all of those lost with mercy, and I wish fortitude and strength to their families and community.
We will continue to honor the efforts of our lost ones. Our strongest hope is to carry on contributing in a positive way, see through the end of all the negativity that the pandemic brought to our lives.
Before the pandemic, we had announced
a transition to digitalization and project implementation within the Group. The pandemic created an environment to accelerate and develop such projects and launch new ones. We started to realize projects across all departments, starting from Human Resources and Invoicing. Our digitalization initiatives have reached a
point that supports our efficiency goals. As we
– along with other businesses and organizations worldwide – navigate this period, cost control and efficiency efforts are even more critical. As a result of these efforts, we continued our profitable growth in line with our long term strategy, despite the challenges of 2020.
In line with our strategy to focus on mid-large scale hospitals, we added three hospitals to
our Group: one in December 2019, in Maltepe, Istanbul; the other two in March and September 2020 in Ankara and Gaziantep, respectively. These additional hospitals enabled us to serve and heal more people. In fact, we opened Liv Hospital Gaziantep to do just that – deliver necessary services to more people. In the second quarter of 2021, we plan to open the Group’s thirty-first hospital and the sixth branch of Liv Hospital, Liv Hospital Vadi Istanbul. I believe that Liv Hospital Vadi Istanbul will soon become one of the referenced hospitals for our nation.
As MLP Care, we announced last year that we were accepted to the Turquality program with our Medical Park and Liv Hospital brands. The Turquality program, in which we participate with our two brands, will contribute to the rapid recovery of health tourism negatively affected by Covid-19 in 2021.
Although hospitals around the world mainly provided services for pandemic-related issues this past year, many people from all over the world still expect to receive services for other serious health problems. In our Liv Hospital and Medical Park hospitals, we continue to provide highly complex and vital treatments in a safe environment.
I would like to thank our employees for their uninterrupted service and efforts during this demanding period. I wish a healthy future to our esteemed stakeholders, our country, and all humanity.
Respectfully yours,
Dr. Muharrem USTA
Chairman of the Board of Directors and CEO
MLP Care Activity Map
HOSPITALS OPENED IN 2020
VM Medical Park Ankara Hospital
Opening: March 2020
Location: Ankara
Liv Hospital Gaziantep
Opening: September 2020
Location: Gaziantep
TL 4.0 Billion
Revenue
TL 1.0 Billion
EBITDA*
*Adj. EBITDA is based on Reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) adjusted for one- time (income) / expenses, net and non-cash GAAP provision expenses.
15 Cities
30 Hospitals
~18
Thousand
employees