2020 financial forecast about Romanian dentistry market in the context of COVID - 19 pandemic

The operating conditions of the dental offices and clinic between March - May 2020:

?       Military Ordinance No. 2, March 21: "The dental offices’ activity is temporarily suspended, as an exception, only emergency dental interventions are allowed."

?       On March 22, the Romanian College of Dentists suspends the activity of Romanian dental clinics - Decision of the National Executive Committee No. 13, by which it decides: The dental emergencies will be provided by the emergency dentistry offices within the EU (Emergency Units), from the structure of the regional and county emergency hospitals. Therefore, the activity of private dental clinics in Romania is closed.

?       Starting with April 20, the Public Health started the authorization procedure for private dental clinics. Thus, emergency dental work could be performed, under special protective conditions, with a two-hour break between patients, for nebulization, with related protective equipment, as well as rigorous cleaning and disinfection measures.

·      In the Romanian private dentistry market, safety measures against infections were at high standards anyway, dentists being trained and prepared to work even when patients are diagnosed with HIV, Hepatitis etc.

The current conditions have made difficult the activity of dental clinics, especially between March and May. Thus, for two months, no clinic in Romania could operate legally. On May 15, dental activity resumed, with long breaks between patients, but also with special protection and disinfection measures.

Between May 15 and July 1, the occupancy rate in the DENT ESTET clinics was extremely high, looking over the same period of 2019. The patients returned with great confidence to continue and complete their treatments started before the pandemic.

We tested weekly patients and medical staff, we were prepared to fight against Coronavirus, so we did not record any cases of direct transmission to patients.

How do you think the dental market will evolve in 2020 from the business perspective? Will we see declines in the profile market businesses?

From the financial point of view, the dentistry field will suffer during this year for two reasons: 2 months of total inactivity, as well as costs that have increased by at least 200% for protective equipment and disinfection materials.

We consider that those clinics that work strategically, following a business plan and have foreseen measures aimed at economic risks or other types of risks, will be able to recover by December 31 the revenues achieved at the level of the previous year.

What is the situation at DENT ESTET for the first half of the year compared to the same period in 2019?

Including DENT ESTET, in the first 6 months of the year, in this special context it felt at a certain level the effects, compared to 2019. However, due to our experience of over than 20 years, as well as the partnership with MedLife, the Romanian market leader in private medical services, we were able to anticipate certain consequences of the pandemic, being financially prepared.

DENT ESTET has secured financing for both new developments and acquisitions. Also, in addition to the fact that this year, the last year level of income will be achieved organically, maybe even an organic increase compared to 2019, to which new investments will be added, with the help of extensions, we will transform 2020, in an exceptional year!

This article is a part of my interview for ZF Corporate. You can read more here: https://bit.ly/33K4SjS.