Medical tourism hospital coming to Ásbrú Enterprise Park
Kadeco, in collaboration with Iceland Healthcare, has signed an agreement to conduct extensive renovations to the hospital at Asbru in Reykjanesbaer. The hospital will offer specialised treatment for foreign patients and some 2-300 new jobs are expected to be created in connection with the venture. Construction and renovations to the hospital will get underway in the second quarter of 2010. The hospital will contain three operating theatres and some 35 hospital beds, and will be able to serve up to 4,000 patients per year. Initially patients are expected to number some 2,000 per year, and the first clients are likely to arrive in the second quarter of 2011.
Good facilities and know-how in Reykjanesbaer
Plans are underway to utilise the former military hospital at Asbru. It will be completely renovated under Kadeco’s direction. Housing facilities on the former military base will be utilised to accommodate patients and their families. The location for the hospital was chosen largely on the basis of the vast know-how and experience in the area when it comes to services for foreign visitors, something which will be highly advantageous in this regard.
Valuable source of income for Icelandic society
It is common for patients who seek medical treatment outside their home countries to travel with their families or friends and even to remain in the same location for a few days following treatment. This can generate substantial revenues in foreign currencies, with direct revenues from the operations potentially reaching ISK 3.5 billion per year. This figure does not take into account revenues from tourist-related operations and other linked services. It is believed that up to 300 jobs will be created with the reconstruction and operations of the hospital and related services in the area. The recruitment of personnel for the hospital’s reconstruction will begin in the coming weeks.
Foreigners increasingly seeking medical treatment outside their home countries
In recent years, a number of European countries have amended legislation allowing their citizens to seek medical treatment outside their homelands. This allows individuals to decide for themselves where to seek treatment, which is variously paid for by insurance companies, public bodies, or the patients themselves. A number of private hospitals have been operated with considerable success in Scandinavia and have had a positive effect on the public health care systems in those countries.
Iceland Health intends to specialise in joint replacement surgeries, fat removal procedures and related therapies. Experienced administrators will be recruited to the project and highly-regarded international collaborators sought. They include Otto Nordhus, Leif Ryd and Bjarne Semb. Initially the company will focus on marketing in Norway and Sweden, and soon afterwards in the United Kingdom. Future plans include service offering in the United States.
Financing, ownership and collaborators
The renovation venture is managed by Kadeco. The real estate company Seltun, of which Kadeco is majority owner, will own the hospital, lease it out to Icelandic Healthcare, and oversee the financing of that aspect of the venture. Iceland Healthcare is owned by Salt Health, which holds an 85% share in the company, Otto Nordhus holds an 8% share, and various other parties with a combined total of 5%. Robert Wessman and Otto Nordhus hold majority ownership in Salt Health. The above-mentioned parties own the operating company but are not directly involved in financing or investment of the reconstructed hospital.
The venture has enjoyed good collaboration with the company Heilsufelag Reykjaness, which is operated by the municipalities of Gardur, Vogar, Sandgerdi and Reykjanesbaer, as well as Keilir, the Blue Lagoon and Kadeko. The role of Heilsufelag Reykjaness is to work with interested parties to develop health-related operations on the Reykjanes peninsula.
Kjartan Thor Eiriksson, Managing Director of Kadeco:
“The project is definitely one of the most exciting innovative ventures in Iceland at the present time. It will constitute an important aspect of the build-up and development at Asbru. The cluster of health-related services at Ásbrú will be strengthened through the operations of the hospital, and this will attract even more diverse companies involved in medicine, treatment, health-promotion, research, education and the production of various health-related products, to name a few.”
Arni Sigfusson, Mayor of Reykjanesbaer:
“It is important for us to receive an injection into the economy at this difficult time and also a pleasure to note that the timing of the venture is firmly on track. Hundreds of new jobs will be created, there are vast tourism-related possibilities, and new and related educational opportunities will arise at Keilir, the Atlantic Centre for Excellence, which is situated near the hospital.”
Robert Wessman, Chairman of the Board of Iceland Health:
“We envision vast opportunities in the operations of a private hospital and related tourism in Iceland. Our target group will be foreign citizens. Demand for the types of treatment we will be offering is growing rapidly, both because younger people are increasingly seeking such treatments, and also because authorities consider there to be a certain efficiency in patients seeking such treatments outside their home countries. We have experienced much goodwill towards this venture and have strong collaborators involved in the financing side. The local authorities in Reykjanesbær have also made an invaluable contribution to the project.”
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For further information, please contact:
Kjartan Thor Eiriksson – Managing Director of Kadeco, tel. (+354) 892-9070
Arni Sigfusson – Mayor of Reykjanesbær, tel. (+354) 893-3056
Halldor Kristmannsson – Iceland Healthcare, tel. (+354) 840-3425