Herceg Novi, (MINA-BUSINESS) – The “Simo Milosevic” Institute finished the first half of the year with a positive result, as opposed to the same period last year when it recorded a loss of €1.5 million.

 

According to Novski Portal, the higher turnover and financial balance of around €900,000 are the result not only of the increased number of patients and overnight stays but also of higher prices for treatment of insured patients, the sale of the Children’s Ward, and lower expenses.

 

Executive Director Zoran Kovacevic stated that, compared to last year’s corresponding period, the number of patients increased by 28 percent in the first half of the year, while the number of overnight stays rose by 31 percent to 70,500.

“The domestic market grew by 33 percent to 62,180 stays, while the foreign market increased by 18 percent to 8,320. The largest share of overnight stays comes from insured patients, totalling 51,140, which is 32 percent higher than in the corresponding period,” Kovačević told Novski Portal.

He added that an analysis of the foreign market showed growth in guests from the region, partly due to effective marketing campaigns. The number of guests from Bosnia and Herzegovina increased by 18 percent, from Serbia by 8 percent, and from Croatia by 33 percent, while the number of tourists from the Netherlands and Russia declined.

 

The Institute has reason to be satisfied with its financial results, as revenue from service sales rose from €3.5 million to €5.67 million in the first half of the year, of which hospital treatment accounted for approximately €5 million.

 

“Total revenues exceed €9.5 million, including funds received from the sale of the Children’s Ward as part of the Institute’s participation in the Restructuring Plan. This significantly impacts the overall business result, especially since our expenses decreased from €5.3 million to €4.86 million. During this period, we regularly paid staff salaries,” Kovacevic said, adding that the employees received full net salaries in the last three months, in line with the collective agreement in public healthcare.

The Institute is currently undergoing a recapitalization process. In July, the Development Bank, Employment Bureau, Health Insurance Fund, and HTP Vila Oliva, which together hold 85.66 percent of the company’s shares, issued a call to purchase shares from minority shareholders.

 

Through the share buyback and future recapitalization, the Government, its funds, and HTP Vila Oliva will increase their shares proportionally, maintaining current ownership percentages. This means the state will not hold a two-third stake and cannot exclude the private partner from decision-making and management of the Institute.