Terveystalo prepares for prolonged exceptional situation by launching new co-operation negotiations
The exceptional situation that has begun due to the corona epidemic is still causing uncertainty. Terveystalo is preparing to continue its mitigation measures if demand does not recover during the summer.
In its Q1 interim report, Terveystalo stated that the market environment is still uncertain due to exceptional measures related to the containment of the COVID-19 epidemic, which decreases demand for Terveystalo's services in the short term. In April 2020, the revenue from corporate and private customer groups declined by approximately 30 percent year-on-year.
In May-June, restrictions to curb the corona epidemic have been gradually eased and lifted nationwide, but the progress of the epidemic and the pace of recovery in health care demand as a result of these measures remain difficult to predict.
“Despite the fact that this is a temporary change in demand caused by an exceptional situation, and the current environment is no longer as difficult as it was in April, we need to prepare for the possibility that demand does not recover to normal during the summer. Should that be the case, we need to continue adjusting our operations during the second half of the year,” commented CEO Ville Iho.
In order to prepare for the possible prolongation of the exceptional situation, Terveystalo will start companywide co-operation negotiations concerning temporary layoffs of up to 90 days in cases where the work is temporarily reduced or terminated.
Negotiations will start on 22 June 2020 and concern the whole group due to exceptional nature of the situation.
Terveystalo will also continue to make cost adjustments by, among other things, reducing external service purchases and re-prioritizing investments.
“It has been a long spring in the midst of uncertainty. I am sorry that this uncertainty continues and the fact that we have to prepare for fall by starting new co-operation negotiations", Ville Iho continues.
“Record high customer satisfaction during spring, our earlier success in switching to remote service channels and launching new services in the middle of the epidemic is a testament to our ability to find new opportunities even in the midst of difficult situations. We firmly believe that we will emerge from this temporary situation stronger than before,” Iho commented.
Terveystalo in brief
Terveystalo is a listed company on the Helsinki Stock Exchange. Terveystalo is the largest health care service company in Finland with net sales and network. The company offers versatile primary and secondary health care services for corporate and private customers and the public sector. The nationwide network covers 300 locations across Finland. The clinic network is complemented by 24/7 digital services.
In 2019, Terveystalo had approximately 1.2 million individual customers and approximately 3.7 million visits to a physician. Terveystalo employs some 13,000 health care professionals. www.terveystalo.com