Kristiinankaupunki selected Pihlajalinna as its partner in social and healthcare services

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Pihlajalinna Plc                           Press release                   19.12.2019 at 11.45 am

Kristiinankaupunki selected Pihlajalinna as its partner in social and healthcare services

Kristiinankaupunki selected Pihlajalinna as the service provider of the city’s partially outsourced social and healthcare services. The production of services is planned to begin 1 January 2021.

The tendered acquisition concerns some of the city’s social and healthcare services. The services to be outsourced include healthcare appointments, dental healthcare services, rehabilitation, child health clinics, physiotherapy, services for individuals and families, the psychosocial unit, and laboratory and X-ray services. The planned outsourcing utilises the joint venture model, taking into account any likely amendments to legislation resulting from the health care and social welfare reform.

The population of Kristiinankaupunki is approximately 6,600 people. The duration of the contract is at least 15 years but not more than 20 years. According to the tendering, the annual value of the contract is approximately 6 million euros. Therefore, the value is approximately 90 million euros for 15 years without index increases. With the option period taken into account, the total value is approximately 120 million euros without index increases. The estimated value of the contract is based on the current cost level of production of services.

Approximately 28 per cent of city-organised social and health care services will be outsourced. Therefore, the value of the contract does not exceed the limit of 30 per cent set in the restrictive law on outsourcing. The service contract for partial outsourcing and the partnership agreement of cooperation are signed on Wednesday, 18 December 2019. The final contract documents will be defined early in 2020.

By partially outsourcing its social and health care services, the city of Kristiinankaupunki aims to, for example, secure and develop social and health care services close to its residents, invigorate the city, preserve jobs and maintain cost-effectiveness.

Further information:
Joni Aaltonen, CEO, +358 40 524 7270

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Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The company serves private individuals, businesses, insurance companies and public sector entities, such as municipalities and joint municipal authorities. Pihlajalinna provides general practitioner services, specialised care, emergency and on-call services, a wide range of surgical services, occupational healthcare, dental care and wellbeing services. In addition, the company offers innovative social and healthcare service provision models to public sector entities.