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Siemens Healthineers signs $100 million lab partnership deal in Turkey

by Thomas Dworetzky , Contributing Reporter
Siemens Healthineers has landed a five-year contract with a pair of new Turkish hospitals expected to be worth more than $108 million, based on the anticipated test volumes.

Over the period, it is expected that over 90 million patients will be served.

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"This project combines our expertise in equipping laboratories with our service portfolio. It is a milestone for us and, at the same time, also a proof point for how we enable our customers to meet their current challenges and to excel in their respective environments," Bernd Montag, chief executive officer, Siemens Healthineers said in a statement. "We have developed a customized solution for our partner DiA and the Turkish Ministry of Health that will comprehensively support their clinical business."

The hospitals were built and are run as a public-private partnership between DiA Holding and Turkish Ministry of Health. The facilities are located in Bilkent, Ankara, and in Mersin.

"It was important for us to have a partner that not only came with enough experience in the hospital environment, but also was strong on technical innovation," said Hakan Adanalı, director of Clinical Support Services at DiA.

The Healthineers will run all medical labs in multiple disciplines, including biochemistry, microbiology, hematology, immunology, emergency, genetics, pathology and point-of-care testing.

The company will also design the labs, provide equipment, consumables and service and maintenance. It will also handle technical staffing.

The plan is part of the ongoing government restructuring of the health care system started in 2003, according to Siemens.

According to the Turkish government, Bilkent health campus is the biggest health care project ever built from scratch in the country. It has almost 3,800 beds, a hotel, congress center and commercial area.

Beginning in mid-2018, more than 10,000 medical staff will be responsible for nearly 25,000 patients there on a daily basis.

The new hospital in Mersin will hold about 1,300 beds, and went operational at the end of January 2017.

The Healthineers might go public in late 2017, if the markets hold up – and it looks like German industrial giant Siemens may already be shopping for bankers to help with an IPO.

"Goldman Sachs will very likely emerge as one of the global coordinators of the Healthineers IPO," according to an unnamed Reuters source.

The idea of bringing Healthineers to market has been at the forefront of Siemens planning for some time.

"Health care is one of the most attractive businesses, if not the most attractive we have in the company," Joe Kaeser, president and CEO of Siemens AG, said when announcing the spinoff of Healthineers in November, 2016, adding that "the public listing is now the next step in further strengthening Siemens Healthineers in Siemens for the future."

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