Terveystalo's addressable markets

Terveystalo's addressable market in Finland

In Finland, the size of the healthcare market is estimated at around EUR 18.1 billion, of which approximately 75 percent is publicly funded and provided. Privately provided healthcare accounts for 25 percent, corresponding to EUR 4.5 billion, which includes publicly funded and privately provided and privately provided and funded healthcare. The privately provided market relevant to Terveystalo includes primary healthcare, dental care, specialty care, occupational healthcare and child welfare services. Terveystalo’ s share of this entire market is about 25–30 percent. The privately provided market is expected to grow by around 3–4 percent between 2023 and 2029. The privately funded occupational health market is estimated to grow by approximately 3–4 percent, the consumer customer market by about 1–2 percent, and the insurance market at the fastest pace, around 5–6 percent.

The rapid ageing of the population, the care debt and the challenges of public healthcare will increase the need for privately provided care in the coming years.

Finland has a unique occupational health system that covers 1.9 million Finns. Occupational health is associated with a statutory pension system. The system encourages employers to invest in occupational health to bring down pension costs. This has effects on public health as well as the total cost of health care. Terveystalo provides occupational health services in Finland to over 26,000 companies and to a total of approximately 744,000 people through its corporate customers.

Terveystalo's addressable market in Sweden

In Sweden, the total cost of health care is estimated at around EUR 25 billion. About 82 percent is publicly funded and provided.  Privately provided healthcare accounts for around 17 percent or EUR 4.3 billion, which includes publicly funded and privately provided and privately provided and funded healthcare. In Sweden, the privately provided and funded market consists largely of oral health services that are not offered by the public sector for people over 23 years, as well as employer-funded occupational healthcare. The private healthcare market in Sweden is quite fragmented; the combined market share of the ten largest players is around 40 percent.

Market growth has historically been faster than in the Finnish market. The ageing of the population, lifestyle diseases, lengthened care queues in the public sector, growing awareness of health and well-being, and the increase in voluntary health insurance are driving the growth of the private healthcare market also in Sweden.

Terveystalo’s subsidiary Feelgood, which operates in Sweden, offers services in occupational health including risk assessments, ergonomics and physiotherapy, organisation and leadership consultation and prevention of harmful use. In addition, the company provides private healthcare and well-being services to its occupational care customers´ employees and their families through the digital service Feelgood Plus.

The Swedish occupational health market is stable and has a size of around EUR 0.4 billion. Feelgood is Sweden's third largest provider of occupational health services with a market share of around 19 percent. The Swedish occupational health system includes fewer services required by law than the Finnish system. Occupational health and private health services are also in different systems. However, employers are interested in offering more extensive occupational healthcare in order to reduce sick leave and extend working careers. Terveystalo’ s subsidiary Feelgood serves approximately 8,000 corporate customers in Sweden, with a total of approximately one million occupational health end-customers.

Sources: Terveystalo market model and internal data, National Institute for Health and Welfare, KELA, Statistics Finland, Swedish Association of Local Authorities and Regions.