Private hospitals rely on wage raises

Private hospitals have attracted investments worth more than 20 million euros over the last two years, however this sum could exceed 50 million euros by 2009, when projects carried out by new investors are completed. With two more hospitals in Bucharest, and at least five new hospitals in the rest of the country, revenues generated are expected to top 20 million euros a year. One of the main issues faced by investors is workforce retention, given the attraction of high wages in the West. “I think currently, the biggest problem is doctors leaving to work abroad,” believes Fredrik Ragmark, CEO at Medicover. In order to keep staff, hospitals are implementing wage increases, especially for doctors, which reach as much as 3,000 euros (including night shift and on-call duties). For example, at Euroclinic the gross average wage of a nurse, excluding perks, stands at around 2,000 RON (600 euros), while a doctor earns 3,200 RON (950 euros). The minimum number of employees who work at large hospital is 100 (full-time staff), and the minimum investment to build a hospital stands at 10 million euros.