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Georgia Healthcare Group signs on Ministry of Internal Affairs as client
Georgia Healthcare Group announced on Friday that its medical insurance business has acquired a significant new client, the Georgian Ministry of Internal Affairs, by winning a recent tender process.
The London-listed firm said the Ministry of Internal Affairs is the country's largest insurance client by number of insured, at around 65,000.
As a result, the number of GHG's insured individuals would now total approximately 155,000.
With the plan to incentivise the use of GHG healthcare facilities and pharma business products, the board said it expected "significant synergies" to come from the new contract in 2018, further improving retention rates within GHG.
"Our medical insurance business has implemented significant initiatives since June 2017, to adapt to changes in the Government's universal healthcare programme by improving contract pricing with existing clients and terminating certain loss-making contracts," said CEO Nikoloz Gamkrelidze.
"I am therefore very pleased to see the successful acquisition of a new large client."
Gamkrelidze said the company expected that the resultant increased client base, with adjusted pricing, would drive further improvements in the business' profitability, and would also further increase retention rates within the group.
"Our medical insurance business plays an important role in our business model, as it is a significant feeder for both our pharma and healthcare services businesses, particularly for our [outpatient] polyclinics."