Health-care fund established by Sitra starts operations

Terveysrahasto Oy invests in structural change in the health-care sector

Media release 1 September 2006

Terveysrahasto Oy, a health-care fund established by Sitra, is the first Finnish fund investing in health-care services that operates as a limited company. The fund employs the opportunities created by the new Finnish Companies Act in venture-capital operations. Investments will be made in public-private-partnership health-care services.

“Establishing the fund is an important achievement for Sitra’s Health Care Programme and it is the biggest of Sitra’s investments hitherto. Through this fund, we will be able to develop and reform incorporated health-care services and increase transparency in health-care service production. When we know were the money spent on health-care services really goes and what kind of quality is achieved with it, we can also improve the effectiveness of service production,” says Hannu Hanhijärvi, Executive Director of Sitra’s Health Care Programme.

“We provide an alternative ownership model for the new service companies in Finnish health care. At the same time, we contribute to the structural change that health care is undergoing, and promote the introduction of the customer-supplier model,” says Hanhijärvi.

Health-care fund commitments exceed €20 million

Terveysrahasto Oy operations will be launched on 1 September 2006. Vesa Lehtomäki is CEO of Korona Invest Oy, the management company of Terveysrahasto Oy.

“To begin with, the investors have made commitments for a total of €22 million, of which Sitra’s contribution is €10 million. Other investors are funds, foundations and insurance companies. The health-care fund is a prime example of a public-private partnership. In addition to a return appropriate to the risk, our aim is also to develop the Finnish health-care system and create savings,” says Lehtomäki.

The health-care fund will make venture capital investments in health-care enterprises. Investments can be made in either existing or start-up companies that apply the best practices in health care. The objective is to target 15 companies within the next four years.

The scope of the fund includes specialised health-care services, medical services benefiting from centralisation, health-care support services, and services facilitated by new technologies.

Further information

Sitra
Hannu Hanhijärvi
Executive Director, Health Care Programme
Tel. (09) 6189 9261, 050 537 8797
firstname.lastname@sitra.fi

Terveysrahasto Oy
Vesa Lehtomäki
CEO, Korona Invest Oy, the management company of Terveysrahasto Oy
Tel. 050 337 6969
firstname.lastname@koronainvest.fi