Hygia Hospital was established as the pioneer private hospital in Greece in 1975. The company is listed on the Athens Stock Exchange and the Group now comprises two leading hospitals, “Mitera” and “Lito”. Hygeia hospital is the only hospital in Greece (and of the few in Europe) accredited by the prestigious JCI, enjoys a collaboration agreement with Harvard Medical School and was awarded the first prize in the European Business Awards 2012/3 while regularly showing up in the top places of the Best Place to Work awards. The hospital’s building in Maroussi, Athens is a known landmark building.
Hygia Hospital Group —The Challenge
· Needed to provide updated financial information for 31/12/2010 regarding the commercial value of its entire fixed assets registry for IFRS purposes and also to its creditor banks.
· The project was unique in Greece given the special nature of the machinery and equipment, the planning complexities of the property and the very short time to completion of the project as required by the client
· Total number of accounting entries for Hygeia hospital alone exceeded 16.000
The Valeur Solution
• Identify property planning complexities in view of ongoing legislative changes : exhaustively analyze development possibilities on a “vacant land” development scenario. Determine remaining life of the building taking into account the large number of recent renovations.
• Identify major categories in machinery and equipment : substantiate positive commercial value for some groups of machinery/equipment on the basis of local and international comparable sales data
• Offer an acceptable market rent in exchange for immediate closure
· The valuation was completed in time (3 months)
· Total valuation of the Fixed Assets registry for the Group exceeded € 180mln
In the case of Hygeia hospital we were able to document to standards acceptable by the company’s auditors: a) positive commercial value of the order of € 1,5mln in some cases of machinery and equipment where book value was zero , b) increased value for the land (despite the generalized crisis of the property market in Greece)