The economic impact of foreign investment in Cyprus’ private healthcare sector took centre stage at the 8th Cyprus Healthcare Conference this week, which was organised by Ygia Polyclinic Private Hospital.

According to InbusinessNews, a roundtable discussion at the event examined how acquisitions by multinational groups are reshaping the industry, bringing new technology, services and practices to the island.

Participants also debated whether Cyprus could position itself as a regional medical reference point.

Another point of discussion revolved around foreign capital, which has been flowing steadily into the sector, with major hospitals changing hands and new facilities being developed.

This trend, the report said, is transforming the healthcare landscape but is also raising questions about competition, quality of care and the long-term role of the state.

Andreas Georgallis, partner of ECM Cyprus and deputy chairman of Ygia Polyclinic Private Hospital, said ageing demographics are a key driver for investors, alongside political stability and a favourable tax regime. “The game changer for us was the implementation of the national health scheme Gesy,” he noted, adding that its predictable income stream gives investors certainty.

He also pointed to Cyprus’ skilled medical staff and the growing demand from foreign residents, particularly in Limassol.

“We do not see the acquisitions in isolation, but complementary, each new investment comes to complete the edifice,” he said, citing the addition of Eden in palliative care.

From a market perspective, Iakovos Galanos, managing director and COO at KPMG, explained that consolidation began in the US, then moved to Europe and Greece before reaching Cyprus after the pandemic.

“We have seen a significant number of acquisitions that essentially reduce competition,” he said.

With most large private hospitals concentrated in a few hands, Galanos argued that the state health services organisation (Okypy) is left as the only competitor and must operate on equal terms.  

“The regulator must monitor and correct distortions,” he added, stressing that Cyprus remains in a transitional stage. 

On quality of care, Galanos said findings are mixed, with some studies linking acquisitions to a decline and others showing improvements.

He emphasised that new technology, methods and processes represent “a significant positive impact.”

Polis Georghades, CEO of El Greco Medical Centre, turned to the effect on patients, saying the Gesy finally gave Cypriots the right to choose their provider, a right long established in Europe. Quality, he argued, is also linked to public awareness.  

“In a survey conducted in the past on what is considered quality, many answered that it is having an appointment on time. In Europe, this is self-evident,” he said, noting that service mechanisms abroad ensure reliability even in case of delays. 

He added that foreign organisations brought practices already standard internationally. 

 “Practices that were new to Cyprus, international organizations have been implementing for years,” Georghiades said, pointing out that foreign investment has helped embed quality indicators into both reimbursement models and accreditation since 2015.