Fresenius Helios is a well-recognized partner in the German acute care market privatization. In 2008, we deliberately continued our growth strategy, acquired one hospital and announced the acquisition of five additional clincis. The integration of the HELIOS Kliniken in Krefeld was successfully continued. In the past year, Fresenius Helios achieved sales of € 2.1 billion and increased earnings significantly.
HELIOS operates 62 clinics with more than 18,000 beds, including five maximum care clinics in Berlin-Buch, Erfurt, Krefeld, Schwerin, and Wuppertal where about 600,000 inpatients were treated, today. In addition to the 43 acute care hospitals, the HELIOS Group includes 19 postacute care clinics. The company had over 30,000 employees at the end of 2008.
BUSINESS DEVELOPMENT
In 2008, Fresenius Helios increased its sales by 15% to € 2,123 million (2007: € 1,841 million). Very good organic growth of 5% was achieved (2007: 3 %), driven by a gratifying rise in the number of inpatient and outpatient admissions. Acquisitions, especially the acquisition of HELIOS Klinikum Krefeld, contributed 11% to sales growth. Divestitures reduced sales by 1%. Fresenius Vamed acquired four clinics in the Czech Republic from Fresenius Helios, with effect as of October 22, 2008. Together, the clinics generated total sales of approximately € 24 million.
As the table shows, earnings were much improved, with a rising level of profitability: EBITDA increased 14% to € 251 million (2007: € 220 million). The EBITDA margin was 11.8% (2007: 12.0%). Fresenius Helios achieved an EBIT growth of 13% to € 175 million (2007: € 155 million), corresponding to an EBIT margin of 8.2% (2007: 8.4%). We achieved this very good result despite a number of negative factors. Earnings were affected particularly by a loss at the HELIOS Klinikum in Krefeld in its first year of consolidation. An additional factor was the 0.5% budget cut for the stabilization of public health costs. This will not apply in 2009. Net income rose by 25% to € 80 million (2007: € 64 million).
At HELIOS’ established clinics, sales rose by 5% to € 1,921 million. EBIT improved by 18% to € 181 million. The EBIT margin was 9.4% (2007: 8.4%). The acquired clinics (consolidation < 1 year) achieved sales of € 202 million and an EBIT of € -6 million.
| in million € | 2008 | 2007 | Change |
| Sales | 2,123 | 1,841 | 15% |
| EBITDA | 251 | 220 | 14% |
| EBITDA margin (%) | 11.8 | 12.0 | |
| EBIT | 175 | 155 | 13% |
| EBIT margin (%) | 8.2 | 8.4 | |
| Net income | 80 | 64 | 25% |
The hospital operations business exhibits stable cash flows, thanks to the reimbursement by health insurers. In 2008, days sales outstanding were 38 days (2007: 43 days). The loss on revenue was at 0.3% (2007: 0.3%).
GROWTH IN HOSPITAL ADMISSIONS AND TREATMENTS
The introduction of Diagnosis Related Groups (DRGs), with standardized base rates in each federal state, means hospitals in Germany face increasing competition for patients. The HELIOS clinics have successfully adjusted to the changed reimbursement and competitive conditions. Due to the broadening of services being offered and our high quality standards, we were again able to increase the number of inpatients treated in Germany. These rose in 2008 to a total of 543,383, an excellent growth of 15% (2007: 476,477). The number of outpatients treated rose substantially by 26% to 1,418,325 (2007: 1,127,613).
| 2008 | 2007 | Change | |
|
Inpatient and semi-inpatient admissions |
548,383 | 476,477 | 15% |
| Acute care clinics | 513,990 | 442,383 | 16% |
| Postacute care clinics | 34,393 | 34,094 | 1% |
| Outpatient admissions | 1,418,325 | 1,127,613 | 26% |
