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HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

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BUSINESS JOURNAL BUDAPEST

VOL. 26. NUMBER 21

NOVEMBER 16 – NOVEMBER 29, 2018

SPECIAL REPORT

Healthcare

SPECIAL REPORT

Concentration Ahead of Consolidation on Healthcare Market

The private healthcare market in Hungary has become considerably stronger in the past couple of years. This steady growth, however, may be curbed if proposed cuts of tax-free fringe benefits (Cafeteria) including health take effect. 12

SPECIAL REPORT

Digital Record to Bring Transparency, Efficiency to Healthcare Launched a year ago with the aim of making healthcare more transparent, the National eHealth Infrastructure has been widening its circle of data providers to private healthcare facilities.  16

SOCIALITE

Clinical Growth, From Budapest to Rome

Getting a Culinary Taste for Budapest Carolyn and Gábor Bánfalvi founded Taste Hungary ten years ago after writing a couple culinary guide books to Budapest and Hungary in order to “help travelers plan their trip and show them around”.  21

NEWS

Surprise GDP Data Shifts Economy up a Notch Exceeding all expectations, the Hungarian economy expanded by 4.8% in Q3 compared to the same period of last year, the Central Statistical Office has reported. The data might result in upward revisions of growth projections for the full year.  3

LR EC I A

EPOR

With a new Hungarian investor on board, and plans to expand in the country, the region and to Italy, Dennis A. Diokno of FirstMed Clinics says this is an extremely interesting time to be in the private healthcare business in BUSINESS Hungary. 14

Helping Hungary Help Those Most in Need The local branch of UNICEF will challenge low levels of giving and a difficult environment for NGOs in order to raise funds on World Children’s Day (November 20), executive director Antónia Mészáros tell the BBJ.  6

2 | 1 News BBJ

THE EDITOR SAYS

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STATE HEALTHCARE IN NEED OF MORE THAN A BAND-AID Private healthcare is a relatively new idea in Hungary. Indeed, for fairly obvious reasons, it is a relatively new idea across much of Central and Eastern Europe; certainly all the former Warsaw Pact countries. But it an idea that’s time has come. Business is booming, as is made clear in our Healthcare Special Report. The reason for that is three-fold. Firstly, Hungarians have got used to the concept. Secondly, they have more money in their pockets, enough to consider paying for such services. Not all of them by any means, but growing numbers of them. If those are draws, third reason is a push, and arguably the biggest driver of all: the state of the national health service. The news on the state healthcare front is the polar opposite of what is going on with private medicine. Staff are underpaid, and have been for years. State institutions face competition both from the private sector and from abroad. And, sometimes, from completely unrelated areas: it is not unknown for nurses, in particular, to give up the profession altogether and go and find better paying positions in some other field of work. It was revealed this week that almost 30% of specialist nursing BBJ-PARTNERS

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spots are unfilled. This creates a vicious circle: already underpaid staff are now also overworked, and thus the likelihood of leaving the profession grows. On top of all that, the infrastructure is often far from ideal. If you have ever spent time in the accident and emergency area of a Hungarian hospital you will have been struck by how shabby most of them look. But why would it be a surprise the paintwork is peeling when there is neither toilet paper not soap in the restrooms? As the owner of one international private clinic said to me: “You see this all over. Emerging countries will spend a lot on infrastructure, on roads and rail and bridges, but healthcare is always among the last to see any investment.” The government is trying to do something. It has grand sounding plans for so-called super hospitals in Budapest. It has said it will increase wages, as it already has done for the police and the army. Most recently it has vowed to separate private and public healthcare, so they are no longer found in the same buildings. I am not sure what good this will serve, although it should put an end to the slightly disconcerting sight of going up the stairs of a public hospital and knowing you have reached the floor where the private patients are treated before you see any signage because the walls are freshly painted. There are, of course, exceptions. But they are few. Hungarian state healthcare’s greatest resource is its staff. And with private clinics warning that they, too, are just beginning to feel the effects of the labor crisis, keeping hold of such treasures may prove even more problematic. Robin Marshall Editor-in-chief

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News///macroscope

Surprise Growth Data Shifts Economy Into Higher Gear

Exceeding all expectations, the Hungarian economy expanded by 4.8% in the third quarter of the year compared to the same period of last year, the Central Statistical Office (KSH) has reported. The data might result in upward revisions of growth projections for the full year; however, forecasts for next year remain more modest. ZSÓFIA CZIFRA

The gross domestic product of Hungary was up by 4.8% according to raw data and by 5% according to seasonally and calendar adjusted and reconciled data in Q3 compared to the corresponding period of the past year. The raw figure was only slightly down from the 4.9% rise registered in the previous quarter. Most industries contributed to the growth, market-based services to the greatest extent, KSH said in its latest release. Compared to the previous quarter, the volume of gross domestic product grew by 1.2% – according to seasonally and calendar adjusted and reconciled data – in Q3. In Q1-Q3 period, economic performance – based on unadjusted data – was

4.7% higher

than a year earlier. It was only a week ago that the European Commission raised its projection for Hungary’s GDP growth in its biannual forecast to 4.3%, up from

Change of GDP in Hungary, 2006-2018 (Q1-3)

Numbers to Watch in the Coming Weeks The Central Statistical Office will publish statistics on how much money Hungarians earned between January and September on November 22. The next day will see retail trade statistics for September, and we will also find out how investments stimulated growth in the third quarter. Also, credit rating institution Moody’s will publish its second review for Hungary this year on November 23.

Annual rate of economic growth Takarékbank raised its growth projections to 4.8% for the full year from its previous 4.6%. In a note, Takarékbank analyst Gergely Suppan said that the expansion could remain

near

volume index, same period of the previous year = 100 (seasonally and calendar-adjusted and balanced data)

Source:

its 4% forecast in the spring. The EC also revised its projection for 2019, to 3.4% from the earlier 3.2%. With the fresh data coming to light, analysts are now revising their projections for both 2018 and 2019. By now, domestic and international organizations are almost unanimous in predicting growth of more than 4% in 2018, in line with the Hungarian government’s own expectations. The real surprise behind the freshly published figure is that economists have kept saying that the Hungarian economy would eventually slow down, as the engines of growth are likely to weaken. However, this seems to have been put off for the moment; some even say that the average annual growth rate could be more than 4.5%, which would be a 14-year high. Eastern European growth is defying euro zone weakness, claims Bloomberg in an article that sums up the latest growth data in the EU. Bloomberg also raises a question: What slowdown? According to Bloomberg, the results in Romania, Slovakia, Hungary and Poland beat economist forecasts for a slowdown indicated by weaker monthly data such as industrial production and retail sales.

Still Cautious

Some analysts, however, are still cautious. Tatha Ghose, an economist at Commerzbank noted “very strong numbers” across central Europe, which don’t appear consistent with the PMIs (except in the case of Hungary) and weak data from Germany and the euro area. “But I would say this was the last strong quarter for the region. Most

leading indicators are softening globally,” he added. Bloomberg analysts’ consensus was 4.4% growth rate for the third quarter of 2018 in Hungary. Reacting to the data, Minister of Finance Mihály Varga also noted that the adjusted Q3 growth rate was two-and-a-half times the European Union average and the second highest among all member states. He said that construction and the service sectors had contributed to the increase most, but rising consumer consumption, boosted by higher wages, together with a doubledigit increase in investments, is also supporting economic growth. As for already published Q3 GDP data, Hungary came in at third place, behind Poland and Latvia.

in the fourth quarter of year. Takarékbank also revised next year’s projection up slightly to 4.2%, from 4.1%. Orsolya Nyeste, an analyst with Erste Bank, said the bank had identified upside risks regarding its 4.3% annual growth rate forecast. She also said that next year’s slowdown might not be as strong as previously expected, mainly due to persisting domestic demand. However, she warned there were downside risks due to the weakening of the global economy. Stronger than expected domestic demand in Hungary implies “monetary policy should change its current extremely loose stance in the near future in order to avoid overheating of the economy,” Nyeste added. ING Bank macroeconomic analyst Péter Virovácz noted that, despite the surprisingly strong third-quarter growth, the Hungarian economy may yet lose some momentum in 2019, since the expected deterioration in external demand cannot be ignored. For this year, however, he did not rule out the highest rate of growth seen in Hungary for some 15 years, albeit provisional on continuing favorable performance in the final quarter.

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4 | 1 News WHO’S NEWS

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Partners Promoted at Taylor Wessing’s Budapest Office The Budapest office of international law firm Taylor Wessing, with 32 offices around the world, has announced the promotion of Dániel Ódor and Zoltán Novák as partners. The organizational structure of the firm’s Budapest office has been transformed with these promotions over the course of the summer, the press release says. Both promoted partners have been part of the law firm’s team for a number of years, and will play an important role in the implementation of Taylor Wessing’s new business strategy in Hungary in the upcoming years, says the firm. Ódor joined Taylor Wessing in 2012 as senior associate. In this capacity, he provided legal

Zoltán Novák at Taylor Wessing’s Hamburg office. He regularly publishes articles on various legal topics in business magazines and academic journals, and is a frequent speaker at international conferences and workshops. Novák is a member of a number of arbitration organizations, such as the Young ICCA, ICC YAF and YIAG. Since his promotion, he is also responsible for the publication activities of the Hungarian office.

owner of Doherty Hungary, which is based in Orosháza (195 km southeast of Budapest). Bagdiné earned her degrees in mechanical engineering and economics at Miskolc University, and initially worked in sales and marketing before switching to logistics, operations, and general management. She speaks Russian and English, apart from her native Hungarian.

as well as assisting in the firm’s strategic planning. From 2009-2011, she was marketing director at Népszabadság, and then coordinated the fusion of Ringier and Axel from the beginning of 2012. After the foundation of Mediaworks, Holovács acted as project manager of county papers, later becoming regional marketing director until the beginning of 2018.

Ad Agency 1080P Names Business Development Director

Raiffeisen Picks Head of Corporates

Hungarian advertising and media agency 1080P has announced the appointment of Annamária Holovács as business development director, as the agency aims to improve its services and optimize processes between company divisions.

Doherty Hungary Appoints GM Dániel Ódor advice to major domestic and international clients in fields ranging from data protection to real estate, to banking and finance. He also worked in these practice groups of the firm’s London office while on secondment there. Ódor is a member of the Royal Institution of Chartered Surveyors (RICS), the professional organization uniting leading real estate experts around the globe. Since his promotion, his scope of duties has been expanded to leading the real estate and IT divisions at the Budapest office. Novák has been working for the Hungarian office of Taylor Wessing since 2010. He specializes in all areas of IP/IT, labor law and dispute resolution, and regularly advises well-known international corporations in both commercial transactions and disputes. He also acts on behalf of the Hungarian state in highvalue cases pending before U.S. courts. Besides his experience in the U.S., Novák also worked for the energy practice group

British-owned Doherty Hungary Kft., a specialist electric motor shaft manufacturer, has announced the appointment of Erika Fodor Bagdiné as its new general manager, after the expert worked with the company as operations manager for nearly a year. “Erika understands the strengths we have and the challenges we face to continue to improve

Erika Fodor Bagdiné our business and the service we provide our customers,” said Jim Doherty, CEO and

Annamária Holovács “The growth realized in the past and predicted for the near future made the creation of the position a necessity,” said Zsolt Urbán, CEO of 1080P. “With Annamária, our agency gained a leader with a wide range of experience that guarantees continuous growth alongside the improvement of service quality.” Holovács began her career at the European directorate of Swiss company Ringier. As a manager, she participated in the preparation of several large Hungarian projects, including the acquisitions of newspapers Magyar Hírlap and Népszabadság. Later, she became marketing research and sales support director of a Hungarian subsidiary, before a short stint at Sanoma’s National Geographic. For two years, starting 2003, she returned to Ringier Hungary, as marketing director of Magyar Hírlap and the magazine division. In 2008, she acted as an external advisor for Népszabadság Zrt., coordinating Népszabadság Online’s revamping process,

Raiffeisen Bank Hungary has announced the appointment of Ákos Jakab as head of corporates, markets, and investment banking, according to a press release sent to the Budapest Business Journal. Jakab has been working with the bank for 21 years, gaining experience in servicing clients in each customer segment, establishing and managing the large corporate and public department, and earlier the northwestern region of Hungary. He reports to Ferenc Kementzey, deputy CEO. “The main objective of our strategy is to help our customers be successful in their business life throughout all cycles by offering them a wide range of products and services, and by becoming a partner and number one service provider,” Jakab said. “We, as Raiffeisen Bank, have always been thinking of long-term customer relationships as a unique selling proposition and consider it extremely important that our customers are aware of the full range of products and services available and understand the full potential that they can achieve in their specific business by using them,” he added.

Ákos Jakab Raiffeisen Hungary’s corporate division, for which Jakab is now responsible, was rated second best among banks providing real estate products and services in Hungary in 2018 by Euromoney Real Estate.

HR&EDUCATION 2018 A special publication of the Budapest Business Journal

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Educating Tomorrow’s Workers

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DVM Group to Construct new Budapest Hotel The Hungarian DVM group has agreed a deal with the German developer B&L Gruppe to design and construct its 310-room, 26,000 sqm IntercityHotel Budapest hotel in Baross tér, adjacent to the Keleti Railway Station. DVM will undertake both construction planning and general construction of the project in one of the largest instructions that DVM has won in Hungary to date. GARY J. MORRELL

B&L Gruppe and the hotel operator, the German Deutsche Hospitality have acquired construction permits and the concept plan has been completed for the project, which will be the first IntercityHotel in Central Europe.

Intercity Hotel Budapest The IntercityHotel brand operates at what it defines as key railway stations and airport locations such as Keleti, regarded as a vital transport hub in the capital. The three-star superior hotel will include a bar, restaurant, conference center and 200 underground parking spaces. The development project will include an additional residential complex consisting of 45 apartments. The development of the first IntercityHotel in the region reflects the perceived attractiveness of the Budapest hotel market for operators and developers. Deutsche Hospitality have focused on development of the IntercityHotel network in Germany, but is increasingly looking to develop abroad. Tourism visits for Hungary and Budapest are continuing to rise. The other significant growth area is an

increase in the number of business travelers. In 2017, an estimated

11.8tourists million

visited Hungary, the highest figure on record according to CBRE. Budapest had an occupancy rate of 77.5%, compared to Prague with 80% and Vienna with 75.3% last year. The consultancy has traced a pipeline of 18 three-, four- and five-star hotels under construction in Hungary, the clear majority of which are in Budapest, with a further 13 planned.

Important Milestone

Tamás Sellyey, operational and sales director of DVM group, says the

IntercityHotel as a modern boutique hotel. “This is our first complete hotel construction project and we are extremely pleased that, after thorough negotiations, a prestigious German developer chose us to realize its first Hungarian project. This mandate is an important milestone to further increase the proportion of instructions received from the open market,” he adds. DVM reference projects include its work on the renovations of the Hilton Budapest in the Castle District, the Radisson Blu Béke Hotel on Teréz körút and the Thermal Hotel Margitsziget. However, the IntercityHotel Budapest will be the first project in which DVM has undertaken construction planning and general construction. The company has been providing design, project management, environmental consultancy and general construction across market sectors since its establishment

1995.

“DVM group’s strong local track record and high-quality approach for planning and building supported the decision to choose them as a local new partner for this turn-key development. Hotel developments have their specifics and DVM group is suitable to take up the challenge,” comments Thorsten Testorp, managing partner of B&L. The Hamburg-based company has already developed a number of hotels, shopping centers, offices and residential properties in Germany. The current hotel pipeline of the company is around 2,000 rooms in eight hotels in different European locations. Planning and preparations started in early November and the hotel is scheduled to be delivered in 2020.

HB Reavis Agrees HQ Lease With Raiffeisen Bank Raiffeisen Bank has agreed a 20,000 sqm letting at the Agora Budapest office development and will establish its Budapest headquarters for around 1,300 staff at the 34,000 sqm Agora Tower, the first building scheduled for completion at the complex next year. GARY J. MORRELL

The deal represents a significant prelease for the speculative development project. Agora will eventually consist of around 136,000 sqm of office, retail and service space; the long-term, phased development project is scheduled to be completed in 2023. The first speculative phase of the development (for which HB Reavis has applied for BREEAM “Outstanding”, BREEAM “Communities” and WELL “Gold” accreditation) consisting of Agora Tower

and Agora Hub will deliver around 65,000 sqm of office, retail and service space

2020.

The project has been designed by the Londonbased Make Architects and the Hungarian Finta and Partners Architect Studio Ltd.

Transport Hub

As with most current Budapest office projects, Agora is located at a prominent transportation intersection on a three hectare site with direct access to the Árpád híd metro station. HB Reavis and the architects

who worked on the project stress the role of the public squares and services that can be utilized by local residents and therefore integrate the project into its surroundings. With regard to the interior, HB Reavis is using its regional in-house interior design and fit-out group, Origameo for the creation of the work environment, based on consultations and research conducted with Raiffeisen Bank. Jan Hübner, country CEO at HB Reavis Hungary, comments that construction of a further 60-70,000 sqm phase of Agora Budapest could go ahead in 2020. With regard to overall supply, 35,000 sqm of office space is scheduled to be delivered in Budapest this year with a

This is the second Budapest office project by HB Reavis after the 21,000 sqm Váci Corner, that was successfully let and subsequently sold to Zeus Asset Management in 2016. The company has office, retail and logistics developments in Budapest, Bratislava, Warsaw, Prague, Brno and London and is also looking to extend its activities to Germany.

further

125,000 sqm

planned for 2019 according to Cushman & Wakefield. An estimated 110,000 sqm of space was delivered in the third quarter and high demand has pushed vacancy to a record low of 6.4%, with rents estimated at EUR 24 per sqm per month in the CBD and EUR 15.25 in the Váci corridor.

Agora Tower in Budapest by HB Reavis.

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Business

says people tend to associate the nonprofit with younger children, but as the organization says on its website: “UNICEF works in 190 countries and territories to save children’s lives, to defend their rights, and to help them fulfil their potential, from early childhood through adolescence.”

Helping Hungary Help Those Most in Need

Pilot Scheme

At the UN General Assembly this September UNICEF announced its latest campaign, Generation Unlimited, which will target children and young adults aged between

ten and

24.

The local branch of global children’s charity UNICEF will challenge low levels of giving and a difficult environment for NGOs in order to raise funds on World Children’s Day (November 20), executive director Antónia Mészáros tell the Budapest Business Journal.

UNICEF Hungary is the only national committee being asked to run a pilot scheme, with seed money from the international organization, the Hungarian government and a few corporate partners. Youth will participate in “a series of workshops, where we help them identify the challenges they face , and come up with local solutions themselves. Selected teams will get funding and mentoring to develop their ideas, with the best team entered into a global competition.” Mészáros explains. “We are still looking for corporate partners to help us secure long-term funding, so we would love to hear from any businesses that want to get involved.” Other projects UNICEF Hungary has been running include child-rights education classes, supported by Telenor, a HelpApp for children at risk of violence, a program strengthening disadvantaged youth with a series of special cultural and sports experiences – launched in September with the help of Ricky Martin, UNICEF Global Goodwill Ambassador – and a campaign against cyberbullying, in part through the efforts of 16 young YouTube influencers, created with the support of Generali.

ROBIN MARSHALL

Antónia Mészáros has been executive director of UNICEF Hungary for a little more than a year, having joined the organization in September 2017. She says it enjoys very high brand recognition in Hungary, but its citizens are generally unwilling to donate to charities, especially when that money is largely spent abroad. Indeed, Hungarians are near the bottom of the table in terms of levels of financial support for UNICEF. Interestingly, Mészáros says this is not always the case for most of the region. “The Czech committee, for example, is much more successful. It has

Ready for a Change Antónia Mészáros

20,000 regular

funded NGOs is making raising funds here even harder, Mészáros says. monthly donors. We have 4,000 for the same “The nature of public discourse is not helping. population size. Poland, Romania, Slovenia It was hard anyway; the rhetoric is making and Croatia are also doing much better. it harder.” It is not unknown for UNICEF Culturally we seem to have a longer way to go.” fundraisers to have insults hurled at them on the streets, often making some Most Vulnerable reference to George Soros, the HungarianBut Hungary is a donor country, rather born financier and philanthropist who has than a receiving one. “The national become public enemy number one for the committee exists primarily to represent ruling Fidesz party. Soros has no connection to the global mission of UNICEF and to UNICEF Hungary, but the mention of human raise funds for the world’s most vulnerable rights can be enough to trigger hostility. children,” as the executive director puts And yet, Mészáros is at pains to point out it. Days before our interview, Mészáros that UNICEF Hungary itself does not have had been in Myanmar visiting a camp for a fraught relationship with the government. displaced Rohingya. “Whatever you think “We work with the Ministry of Human of life in Hungary, its children are not Capacities in a number of local projects, among the most vulnerable,” she says. delivering results for Hungarian children in The Hungarian government’s well need,” she says. Her organization gets some documented suspicion of foreignfunding from the government, and also has some shared values with it. Both parties agree, for example, that it is important to help and aid under privileged children in For more information on the their home countries.

World Children’s Day, see unicef. hu/gyerekhang (on Hungarian events, in Hungarian language only) or unicef.org/worldchildrens-day • To donate HUF 500 via SMS just dial 136 66.

SMS Donations

World Children’s Day will be a chance to make sure it is the children who are front and center. Last year was the first time UNICEF Hungary had officially participated, and it ran 55 different events.

This year a similar number of programs are planned, the simplest of which is promoting SMS donations, via the

number

136 66.

Mészáros says the Hungarian organization doesn’t over use this short code, since local regulations will not allow it to contact SMS supporters, thank and inform them about how their contributions are being spent and to develop a longer-term donor relationship. But as SMS giving is quick, easy and does not require people to give over their credit card details, it has a better chance of success in this particular campaign. The main theme for the day however is the Child Takeover, which will once again feature a long list of partners, from the Parliament and the Budapest Mayor’s office, through national institutions like the fire, transport and ambulance services all the way to theaters, embassies and big corporates. OTP is again one of the main sponsors. The idea is that children are not just shown around businesses and organizations, but given a chance to run things. In 2017 the Swedish Embassy, for example, gave over its website to a group of children for the day. But UNICEF’s work is about much more than one day, of course. Mészáros

Antónia Mészáros may not have been the obvious choice to take over as executive director at UNICEF Hungary. Certainly, she didn’t think so. Her background is as a journalist, tv anchor, writer, and documentary filmmaker. Her most recent work was as an anchor for local station ATV, and prior to that a presenter for MTV (that’s Hungarian Television, not the music channel). Before that she worked for the BBC for six years, contributing to some of its flagship news and current events programs such as “Panorama” and “Newsnight” among others. “I was ready for a change,” she says. And yet, when the UNICEF position was first mentioned to her, she was initially skeptical. “I had never managed a large organization and I did not have much fundraising experience,” she says. But the more she researched it and thought about it, the more interesting the idea became. “It is a wonderful organization, and I always had an appreciation for what it did and stood for. It is a privilege to be a part of this effort now.”

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Business

Budapest Airport and Tungsram Join Forces Two major Hungarian brands, Budapest Airport and Tungsram, have concluded a strategic cooperation agreement. 2nd district

BBJ STAFF

Tungsram, a global brand with Hungarian roots relaunched under its original name this spring after a management buyout of the businesses of GE Lighting in Europe, the Middle East, Africa and Turkey, as well as its Global Automotive business, will introduce itself to the traveling public at Hungary’s main international airport. The strategic agreement was signed on November 13 by Jost Lammers, the CEO of Budapest Airport and Joerg Bauer, president and CEO of Tungsram Group. Both men are past winners of the BBJ’s Expat CEO of the Year award. Travelers arriving in and departing from Ferenc Liszt International Airport, which can number up to approximately 1.5 million visitors per month, will be greeted with advertisements for the historic Tungsram brand at the terminals. Tungsram is also equipping a lounge for its VIP international customers.

Future Cooperation

The two partners say they are open to cooperation in a number of other areas as well in the future. Lammers, of Budapest Airport said at the signing: “We are very proud that Tungsram, this Hungary-based global brand, will send the message to the world about its return via the surfaces of Ferenc Liszt International Airport. The cooperation between Budapest Airport and Tungsram is a Hungarian success in an international environment.” Bauer, the Tungsram Group president and CEO added: “We are happy to be a part of the Central European success story of Budapest Airport; we think that this is the best place for our messages to the world. This airport is where our key stakeholders and customers will pass through when visiting us, that is why it is important that our joint innovative solutions in lighting, smart buildings and beyond will also be present here.”

Company ///news Hunguest Plans HUF 45 bln of Upgrades

Hunguest aims to spend about HUF 45 billion to upgrade its hotels in Hungary in the coming three-to-five years, CEO István Hülvely told privatbankar.hu. The upgrade aims to push Hunguest’s hotel portfolio into the four-star and superior four-star categories. Hunguest’s annual revenue could rise to more than HUF 30 bln next year, doubling the turnover in 2017, Hülvely said. In Q1-Q3 of this year, Hunguest’s revenue reached HUF 17.6 bln, he added. Hunguest owns 18 hotels in Hungary and five abroad. It also operates three hotels for partners. Hülvely said that the hotel portfolio operates mainly in the family, leisure, spa and wellness fields and three-quarters of its guests are Hungarians. Hunguest is a member of the Konzum group, controlled by the investor billionaire Lőrinc Mészáros.

Vajda Papír Opens HUF 15 bln Plant

Hygienic paper products company Vajda Papír inaugurated a HUF 15 billion plant in Duanföldvár (100 km south of Budapest), which will create 100 new jobs in the region, napi.hu reported. The 26,000 square meter plant raises Vajda Papír’s domestic capacity to 100,000 tones, said managing director Attila Vajda. Finance Minister Mihály Varga said the government granted the company HUF 4.5 bln fiscal support. The plant uses technological innovations which run production with the slightest environmental footprint possible. Cellulose comes from forests planted for industrial use, the firm operates with a reduced amount of industrial water and the electricity is produced entirely from green energy, napi.hu wrote.

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84 sqm – 3 rooms + Hall, PasaréTi sTr.

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This completely renovated, very spacious, street facing apartment benefits of 2 bathrooms, balcony and 2 entrances. It is situated within a nice condominium with elevator.

45.900.000 HUF

69.900.000 HUF

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2nd district

Jost Lammers (left) and Joerg Bauer.

2nd district

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166 sqm – 5 rooms, Hűvösvölgyi sTreeT

300 sqm – 7 rooms, TárogaTó sTreeT

From 75 sqm To 92 sqm, rómaiFürdő

In a villa house, this very bright and spacious, duplex apartment in good condition has 2 kitchens, 2 bathrooms and terrace with connection to the common garden of the building.

This two storey Bauhaus style detached house built on 1078 sqm of lot, has big terrace, garage and separate entrance to the ground floor. It is located in a quiet and green area.

In the quiet garden suburb area, within a new built, eco-friendly condominium, spacious, well divided, luxury apartments with terraces and balconies.

134.900.000 HUF

198.000.000 HUF

798.000 HUF/sqm

+36.70.376.4138

3rd district

+36.70.376.4138

3rd district

+36.70.669.5350

3rd district

From 44 sqm To 91 sqm, rómaiFürdő

From 63 sqm To 102 sqm, rómaiFürdő

109 sqm – 5 rooms, záPor sTreeT

Close to the Római Open-air baths, four apartments within a new built, eco-friendly building. Garage possibility for 3,5 M HUF, parking space for 1,5 M HUF. Handover in autumn 2019.

Four apartments within a new built, ecofriendly building, close to the Danube. Garage possibility for 3,5 M HUF, parking space for 1,5 M HUF. Handover in autumn 2019.

Close to the Amphitheatre, in a quiet street, this very sunny, well divided apartment benefits of 4 separate bedrooms, living room, 2 bathrooms and private gas heating.

998.000 HUF/sqm

64.900.000 HUF

+36.70.669.5350

3rd district

+36.70.669.5350

3rd district

+36.1.430.1403

6th district

90 sqm – 4 rooms, TesTvérHegy

125 sqm – 5 rooms, TesTvérHegy

77 sqm – 3 rooms, Bajza sTreeT

In a new built subdivision with common garden, this very bright apartment benefits of a living room with open kitchen, 3 separate bedrooms, 2 balconies and 2 parking spaces.

This new built, two storey, luxury, eco-friendly detached house built on 365 sqm of lot, has beautiful panorama, 2 bathrooms, sauna, terrace, well kept garden and a two car garage.

Close to the Andrássy Boulevard, this spacious, street facing apartment in good condition has separate rooms and private gas heating.

89.900.000 HUF

179.900.000 HUF

39.500.000 HUF

+36.1.430.1403

6th district

+36.1.430.1403

6th district

+36.1.351.0446

12th district

74 sqm – 3 rooms, király sTreeT

villa HoUse – 1350 sqm, Benczúr sTreeT

327 sqm – 7 rooms, kúTvölgyi sTreeT

In a renovated building with elevator, this completely renovated, spacious apartment has separate rooms, two bathrooms and private gas heating. It is located close to the Teréz Circuit.

This completely renovated, 5 storey villa house benefits of terraces, balconies and a very nice, well kept garden. It is located close to the Andrássy Boulevard.

This very sunny, four storey semi-detached house built on 705 sqm of lot, has 2 living rooms, 4 bedrooms, mansard room, 3 bathrooms, 2 terraces, balcony and a 2 car garage.

44.500.000 HUF

4.200.000 eUr

189.000.000 HUF

+36.1.351.0446

+36.70.639.9986

13th district

36 sqm – 1 room, visegrádi sTreeT

83 sqm – 3 rooms, visegrádi sTreeT

115 sqm – 3 rooms, Pannónia sTreeT

This completely renovated, street facing, high floor apartment is situated within an Art nouveau building with elevator, close to the St. István Circuit.

This completely renovated, top floor, luxury apartment benefits of two bathrooms and private gas heating. Within a building with elevator. All of the furniture is included in the price.

32.900.000 HUF

82.900.000 HUF

In a very nice, renovated building with elevator, this completely renovated, very sunny, street facing, high floor apartment has separate rooms, balcony and private gas heating.

+36.70.414.7759

84.900.000 HUF

+36.70.414.7759

grUPPo T.F.m. kFT. 1068 BUdaPesT, király U. 102. each agency independently owned and operated. • these offers are valid, till the apartments are sold. • these information do not constitute a contractual element.

8| 2

Business

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

CollMot Robotics: ‘Your sky is our Canvas’ Challenging Projects The people behind Hungarian startup CollMot Robotics first started working with drones in 2009, at Eötvös Loránd University’s Department of Biological Physics, under a European research grant awarded to Professor Tamás Vicsek. However it was not until six years later that the company was founded. BENCE GAÁL

“CollMot Robotics Ltd. was founded in 2015 as a spin-off, soon after our first international scientific publications on autonomous drone swarms,” says Gábor Vásárhelyi, the company’s CEO. “We still foresee a great potential in the fleet-level operation of intelligent, selforganizing drones in many industrial

CollMot’s St. Stephen’s Day drone show. Photo: Zsolt Bézsenyi. applications, but up to now our main focus have been ‘CollMot Entertainment’, where we use our drones to create amazing light shows that entertain and inspire audiences at festivals and grand outdoor events,” he adds. CollMot Entertainment currently promises to “tell a story in the sky” with the combination of a variety of elements including multi-drone formations, 3D dynamic animations, drone-launched fireworks, drone “light painting” as well as drone shows based on real-time humandrone interaction. “All of these building blocks help us to innovate in this exciting industry and to deliver on the promise of our slogan: ‘Your sky is our canvas’,” Vásárhelyi notes.

Late-blooming Real Estate Industry Catching up With Innovation

The core team of CollMot consists of the four co-founders at the moment, with the startup investing its income into scaling up both its team and infrastructure. The group also has a pool of art and tech colleagues who work with them on a project-by-project basis. “We recently began working with professional sales and marketing experts, including Zoltán Várdy, who as executive chairman is helping us scale up and professionalize our business,” says Vásárhelyi. “Zoltán was formerly CEO of TV2 and senior vice president at NBCUniversal in London, so he brings a lot of relevant experience in how to build and run an international entertainment business.”

Future driven innovation

sponsored by

Unique Experience The construction industry is something of a lateIn fact, Futureal says that it has made bloomer in terms of applying innovative approaches significant efforts lately in providing a customer experience for customers, and state-of-the art technologies. Customer demands, unique exploiting the latest technologies available. “For example, our Cordia Sales Office the lack of labor force and spreading digitization in was designed with a creative combination the office mean both the retail and the residential of playfulness, style and functionality. The sales team make use of cuttingproperty sectors have increasingly been utilizing edge technology to present our various development projects using touchscreen innovative approaches and emerging technologies. monitors, VR glasses and graphic CHRISTIAN KESZTHELYI

“In development, prefabrication and modularization is a strengthening trend that requires creativity and smart engineering to make the right balance between increasing costs and faster implementation. In operating, real estate digitalization aims to increase comfort and optimize energy consumption as a result of increasing environmental awareness,” Tibor Tatár, CEO of Futureal tells the Budapest Business Journal. Consumer expectations have been shaped by disruptive technologies, and as they have become more used to innovative and sustainable solutions, the real estate

sector has been forced to follow suit in terms of innovation. “They want a level of comfort that they already enjoy in the digital ecosystem. We can also see that smart solutions are becoming part of the everyday of our business in the field of operations, maintenance, sustainability, comfort and services,” Tatár says. Like other sectors, the real estate industry has also been affected by the lack of workforce. Smart solutions are expected to ease this pressure. At the same time “revolutionary technologies robotics, automation, data analytics, smart solutions will definitely improve project management and engineering”, Tatár notes, adding that the customer experience is also expected to be elevated.

CollMot is perhaps best known for its drone shows at two large public events: the 17th FINA swimming world championships in July 2017, and the St. Stephen’s Day celebrations this summer. “Both FINA and our latest public drone show in Budapest on August 20th were challenging projects for two reasons: first, the relatively small take-off and landing area along the riverbank, and second, the increased safety requirements due to the hundreds of thousands of people watching our shows live,” Vásárhelyi recalls. “We did our best to push the performance of our drones to their limits while still maintaining the highest level of safety. We’re proud that we created a thematic drone show over the Danube that had never been seen before. Besides the ‘standard’ static drone formations, we also developed giant 3D dynamic animations, like the Miraculous Deer, which is a truly unique element worldwide.” At the moment, CollMot’s team is focusing on becoming the continent’s leading drone light show producer. “We would like to scale up our business, automate the design and production of our solutions as much as possible, create a lot more unique artistic drone shows for grand outdoor events worldwide, as well as repeatable fixed-site drone shows in theme parks,” the CEO explains. However, innovation does not stop at light shows according to Vásárhelyi. “Of course, this process has a positive side-effect beyond the core business: the autonomous collaboration of a large fleet of drones is something we can exploit in other industry sectors in the long-term,” he argues.

presentations so you can learn about every aspect of our projects,” Tatár describes. The CEO adds that the shopping and entertaining center Etele Plaza the company is now working on will be the first smart plaza in the country. “The most advanced location and navigation system will facilitate parking in Buda’s largest shopping center by indicating empty spaces, it will also help customers find the chosen stores or services through a mobile application,” the CEO says. Adopting innovative solutions and new technologies also helps boost sustainability, and as such, Futureal’s related efforts have been acknowledged. “Futureal Group has become the first property developer in Europe to receive the WELL Building “Platinum Precertification”

for three of its office building projects at the same time. Innovations driven by the WELL Building Standard will define the office market over the next decade,” Tatár says. Citing air pollution as a major problem, the CEO notes that his company “has been committed to developing all of its future office buildings according to WELL standards, since the health of employees working in the building must be a key priority during planning” Innovation is seen as increasing efficiency; at the same time, Futureal expects to utilize capacities better in order to provide more added value to its customers, and to boost competitiveness. “In ten years our business will still be about working with people, understanding their needs and providing maximum comfort and efficiency with the support of more advanced digital solutions. However, we also assume people ten years from now will be slightly different, with more awareness on their personal footprint on Earth and with even more openness towards digitalization,” Tatár concludes. This regular column, run in association with Audi, looks at how some of Hungary’s biggest companies involve innovation in their daily practice.

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

Special Report Healthcare

Concentration Ahead of Consolidation on Healthcare Market 12

Private healthcare is growing fast, but will government plans on tax-free health perks and the seperation of private and public sectors help, or hinder?

Building a Healthy Business on Customer Service

14

Digital Record Keeping Aims at Bringing Transparency, Efficiency to Healthcare

16

Life Sciences Success Stories in Hungary

18

10 | 3

Special Report

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

Trouble at the Heart of the Health Service The petition, sent to the Ministry of Human Resources, has recently been rejected, Ender says. “[The ministry] said that the director-general of the hospital had the legal right to sack Dr. Székely, and the ministry cannot modify the decision,” Ender explains. “Naturally, this is not the truth.” Asked if there was any suspicion of professional malpractice in the affair by Székely, Dr. Ender responds: “Absolutely not, and [I] have not heard anybody as professional in his field who would [suggest that].”

When Dr. László Székely began preparations for a heart operation on a female patient last March, he recognized a potentially dangerous complication. His patient had breast implants, which were now old, meaning there was a risk that they would leak silicone during surgery.

“I had the chance to start doing this stuff earlier than others. Cardiac surgeons have to relearn everything. I have had so many fights against the older surgeons [about this]. It is very difficult for them,” Székely has turned to the courts for redress over his dismissal, a process that may take years and still yield a negative result. In his mind, the real reason behind the whole affair is a combination of personal revenge and power politics within the health service.

KESTER EDDY

Szekely, then head of the Cardiac Surgery Department at the Gottsegen György Hungarian Institute of Cardiology, Budapest, discussed his concerns with the patient in advance. There was a risk, but with a track record of more than 800 heart operations on his CV, all using modern, minimal-invasive surgery techniques, he was not overly worried. However, because of the vagaries of the Hungarian health system and circumstances beyond his control, the operation was to have life-changing consequences for more than just his patient. During the surgery, Székely found the implant not merely leaking; the silicone was slowly making its way into the heart cavity. The situation was life threatening. Not certified to deal with the implant, Székely requested the assistance of an experienced plastic surgeon from another state hospital, and the team set about tackling the emergency developing before them. “She almost died, because of the silicone in her circulation, which was awful, [leading to] huge lung bleeding,” Székely says. By using an artificial lung and circulation system to ensure proper respiration, the team solved the original heart issue, cleaned up the leaked silicone and performed a new breast implantation in one complex, 10-hour marathon session. The patient not only survived, but at least as of August, was “95% recovered”, bar some mild sideeffects to her hearing.

Obsolete Training Dr. László Székely

Work Well Done?

For the oft-maligned Hungarian national health service, it was surely one job to be rightly proud of. Except, six months later, Dr. Székely was dismissed for this very operation. “I was fired for an administrative fault. I mixed public and private health [services],” he says. The catch was that while the removal of the damaged breast implant via a national health-funded operation was

“I was fired for an administrative fault. I mixed public and private health [services].” acceptable under Hungarian regulations, the fitting of a new implant had to be a private operation. The surgeons involved, fully aware of this rule, agreed to take responsibility upon themselves. “If the patient didn’t pay for the new implant, I promised to, from my own money: I saved the patient’s femininity,” says Dr. Székely. Naturally, transgressing regulations cannot be condoned lightly in any profession, least of all medicine, where lives may be at stake. But, according to

Székely, not only did the dismissal in this very complex case come without warning or any hearing, but leadership at the cardiological institute knew of at least one similar operation to which they had turned a blind eye in a gesture of understanding of the dilemma confronting the surgeons. Moreover, the Hungarian national health service is faced with a dearth of qualified medical staff. Countless domestic media stories detail the miserably poor pay and conditions in hospitals, which has led to mass emigration by doctors and nurses for better-paying jobs in Western Europe and the USA.

Staff Aghast

In view of this, the dismissal of an experienced heart surgeon for a debatable “administrative fault” would seem to go against all reason. Certainly, his own staff at the institute were aghast at the move, with many rallying in support of their former boss. “Over 70% of the colleagues working in the heart surgery department [signed] a petition of support,” Dr. Gábor Ender, a heart specialist formerly working under Székely tells the Budapest Business Journal. “It declared that after the removal of Dr. Székely, the quality and level of medical procedures [at the institute] would decline. This drop definitely happened after a few weeks, according to information from insiders,” he adds.

He argues that the rapid development of minimally invasive techniques for heart surgery in the past two decades has meant that the long and arduous training given to doctors in earlier eras is now largely obsolete. “I had the chance to start doing this stuff earlier than others. Cardiac surgeons have to relearn everything. I have had so many fights against the older surgeons [about this]. It is very difficult for them,” Székely explains. When those harboring resentment from such disputes combined with what he terms “medical barons” – powerful figures in the medical establishment who are able to bend the rules, in some cases for their own benefit – it seems Szekely’s fate was sealed. The Budapest Business Journal requested comment on this story in good time from both the Hungarian Ministry of Human Resources and the Gottsegen György Hungarian Institute of Cardiology. Neither responded before press deadline. However, the Institute, presumably through an oversight, was still proudly declaring Dr. Székely’s track record as a heart surgeon on its web site as this publication went to press. Meanwhile, Székely is jobless, although he says he’s had offers, including one from abroad. One of the patients scheduled for an operation that had to be put off after his dismissal has died. Asked if others are likely to die because of the shortage of specialized heart surgeons in Hungary, he replied: “Yes. But who cares? It’s only one vote.”

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

Hungary’s MedAlliance Holding Zrt. has signed acquisition and integration agreements with Genium Center, MediKids, and DoKid, further expanding the medical portfolio of the recently established holding company.

INSIDE VIEW

Employment in Healthcare Dr. Melinda Jeviczki Associate SÁRHEGYI AND PARTNERS LAW FIRM

Women’s Health

BENCE GAÁL

All three companies involved are wellknown and established on the Hungarian medical market. Genium Healthcare, Family Planning and Diagnostics Center, as well as MediKids Private Pediatric Center and the DoKid mobile pediatric service will continue their operations under the aegis of MedAliance Holding, significantly enhancing the outpatient care capabilities of the firm. The acquisition price was not disclosed. “Genium Center is one of the first family planning and fetus healthcare centers in our country, operating on a very high level in scientific and professional terms, representing a valuable addition, which very well fits the current operations of Róbert Károly Private Clinic, where more than

1,000 children

are born each year,” says Dr. Lajos Fábián, chairman of the board of directors at MedAlliance Holding. MediKids, the capital’s first private pediatric center, combined with DoKid’s mobile pediatric services, aims at providing a wide range of services and safety to families with small children. “It’s logical, that we further strengthen our strong system built on our infertility center, pregnancy care and maternity services with peak quality fetus diagnostics and pediatric operations,” Fábián adds. DoKid is a mobile healthcare service that provides medical attention for children and infants in patients’ homes, even during times when traditional clinics are not open. Genium Center specializes in male and female health, as well as reproduction and fetus health issues.

MedAlliance took over Róbert Károly Private Clinic, which provides specialized private out and inpatient care in the field of women’s health issues, in April. The clinic also has an Alternative Health Center, providing a safe, homely atmosphere for mothers giving birth. The acquisitions mean MedAlliance’s private medical supply system has expanded into new locations. In Budapest, it now has a presence on Thököly út in

“I am sure that MedAlliance’s high professional standards and financial background will help the further development of the centers I have built.” District XIV, and Hegyalja út in District XI, alongside the Róbert Károly Private Clinic located at Lehel út in District XIII. According to the holding company, with these acquisitions the group’s yearly net revenue will grow to the

region of

HUF 3 billion.

“I am sure that MedAlliance’s high professional standards and financial background will help the further development of the centers I have built,” says Dr. Gábor Timmermann, the founder of the three recently acquisitioned companies. MedAlliance Holding Zrt. is a Budapest head quartered private holding company specializing in hospitals and healthcare that was established this year.

In the recent years, Hungarian healthcare providers (hospitals, clinics) have been confronted with a significant human resource crisis. Most of the providers are central or local public institutions, for which the applicable legal regulations – unlike the regulations applicable for the providers operating in the form of business organizations – cause significant difficulties when solving the human resources crisis. In the case of healthcare providers, the framework regulation is the Act of LXXXIV of 2003 on the “specific questions of the provision of healthcare services”, defining who is considered a “ healthcare employee” and who are “employees active in healthcare”. The act defines those legal relationships where healthcare activities are allowed to be performed (free-lancer, single person healthcare undertaking, public service, governmental public service, state public service, service relationship, clerical person or a professional person providing religious ceremonies for an organization performing religious activities, a voluntary person or member of a single person company). Thus, a healthcare employee is a person who has the adequate qualifications, or who participates in the activities of the person with the adequate qualifications, independently from the form of the legal relationship between the parties. According to the regulations of Act XXXIII of 1992 on the “legal status of civil servants”, public institutions – which constitute the major part of the healthcare providers – must launch public tenders for open positions, except where such tenders were unsuccessful at least twice within 90 days, or when filling an open position is urgent for the continuous and safe provision of healthcare services, and there is no other method of work organization to overcome these conditions.

One of Genium ‘s rooms. Photo: genium-med.hu

But what happens if, following the legal regulations, the healthcare provider launches a tender to fill its

open positions, but it is confronted with the fact that the applicant suggests creating a different legal relationship other than employment as civil servant, or there is no applicant at all. In this case, it has to follow the regulations of Act CXLIII of 2015 on the public procurements, because the healthcare provider is obliged to apply public procurement rules also in the case of buying labor services, with the exception of those employment relationships that are listed in the act as exceptions. Thus, based on the regulations, public procurements must be launched in cases of healthcare services provision under the aegis of free employment, healthcare provider as a single undertaking, member of a partner undertaking, or member of a single undertaking, even if the subject of the labor contract is related to the provision of services by a specific person, and if the yearly value of the contract exceeds HUF 18 million, or the sum value of the same contracts exceeds HUF 18 mln. In many cases, the challenge for the contractor is to judge what is to be considered as procurement. When ordering services, it is a vital aspect to investigate what is the direct aim of that service. Naturally, during the definition of the direct aim, it is not the name of the service that decides; for example, financial and technical design can be legally divided into parts, even though they are both designs. Only those who have the enabling certificates for the provision of the services are allowed to provide healthcare activities, thus the focus on the same aim cannot be interpreted too widely: the request to involve doctors in the healing activities cannot be the basis for the cumulative calculation, but it is already necessary to analyze this within the same profession. So, what does a healthcare provider do if it does not want to create a civil service relationship? The healthcare provider implements the public procurement according to the rules applicable for civil servants, and after it is unsuccessful – in case it cannot be solved with the given personal conditions (i.e. work re-organization) of the obligatory healthcare services provision, it signs a contractor agreement with the applicant without a public tender until it can execute a new, successful one.

www.sarhegyi.hu

NOTE: ALL ARTICLES MARKED INSIDE VIEW ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

MedAlliance Expands Healthcare Portfolio

Special Report | 11

Special Report

Beat the Flu This Year! You don’t even have to wonder about flu; it will definitely make an appearance at this time of the year, so vaccination should be on your mind. Not to be messed with, the malicious virus can wreak havoc in a compromised immune system, so you’d better get equipped and brace yourself for impact. Children, the elderly, and the chronically ill are those most at risk.

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

12 | 3

Concentration Ahead of Consolidation on Healthcare Market The private healthcare market in Hungary has become considerably stronger in the past couple of years. This steady growth, however, may be curbed if proposed cuts of tax-free fringe benefits (Cafeteria) including health take effect. ZSÓFIA VÉGH

Flu is passed on much like common Most Effective Most people think it is enough to respiratory ailments: through coughing, sneezing and the tiny drops of saliva that take more vitamins that prepare the immune system to fight a viral infection. we exhale. Consequently, the disease But even high doses of vitamin C are can spread rapidly across small or large ineffective when it comes to a flu communities – schools, neighborhoods, epidemic. Vaccination is the most offices – in a matter of days. Different effective prevention, and is highly from the common cold, the onset of the recommended for children, the elderly flu is not the typical catarrh symptom of and those with chronic diseases. sniffing and blocked nose. It starts with There are different strains that rapidly escalating high fever, fatigue and might cause seasonal epidemics, muscle pain. and the composition of the influenza Respiratory diseases are caused by vaccination is adjusted to the certain bacteria and 175 identified most common viruses each year. viruses that belong to five separate The short immune response calls groups. These are not to be confused for repeating the vaccination with influenza, which is quite different annually, to ensure complete in its symptoms from the rest of respiratory diseases, both as an epidemic immunity through the whole season. Many are afraid of the side effects and in terms of clinical treatment. although in the case of the latest Once you are down with the flu, bed “split” vaccines these are extremely rest and hydration (drinking lots of water, sugar-free fruit tea and lemonade) rare. Occasionally one may develop a vaccine reaction (developing flu-like are the best cures. Medication is only symptoms following the vaccination). recommended when clinical symptoms Two weeks after vaccination the body arise (high fever, lethargy, strong pain in starts producing enough antibodies the throat or muscles). A blocked nose to ensure immunity. is best tackled with salt spray or other It is interesting to note that, according inhalants that sooth and contract the to an American study, those inoculated swollen mucous membranes. During the against influenza have a lower risk day we can take expectorants against a of heart attack in that year. It is a persistent cough. staggering figure that in the 2017-2018 It is highly advisable to disinfect the season the death toll from influenza was most commonly used surfaces (light 80,000 in the United States alone! Get switches, doorknobs and remote the message and get vaccinated now. controls) at home to prevent other family members from catching the flu. Be aware that unusual symptoms, such as ear ache, sinus pain, fast or irregular heartbeat, strong lethargy and uncontrollable drowsiness, could be the signs of more serious health complications that require immediate www.drrose.hu medical consultation.

Driven by demand for better services from people and bolstered by higher levels of investment from market players, Hungary’s private healthcare sector has been expanding dynamically in the past few years. The largest players have seen double-digit growth in the last couple of years and reported an increase in both out-ofpocket and corporate health insurance expenditure. In 2017, the growth rate of the biggest players exceeded 20%, which is well above past five years’ average of 15%, writes Heal Partners, a consultancy, in an article based on companies’ public data. Profitability has also improved: mean EBIDTA

The planned cuts in the tax-free cafeteria system will curb expansion from 2020, according to Kirschner. It also remains to be seen how the

increased to

13.3%

in 2017, up from 11.6% a year earlier, the article writes. “This rate of growth will last for a few more years,” says András Kirschner, owner/general manager of Swiss Medical. “Yet, we will feel the impact of the upcoming global recession as of next summer,” he warns.

“[Private healthcare] facilities compete for physicians or nurses not only with domestic, but also with their Western European peers.” Swiss Clinic is among the largest players on the Hungarian market and also claims to be market leader in the corporate health sector. From 230,000 patients treated in outpatient care in 2015, it estimates it will have 340,000 by the end of 2018. The company has doubled its revenues in the past five years to HUF 2.2 billion in 2017 – 70% of which came from corporate health insurance.

András Kirschner planned separation of private and public healthcare, announced by the government in the past few weeks, will affect the system, says András Kiss, marketing director of Budai Egészségközpont, another complex facility whose revenues were more than HUF 6.5 billion last year and are expected to increase by a further HUF 1 bln in 2018.

Healthcare as a Service

Current growth is spurred, to a large extent, by people starting to look at healthcare as a service. Dissatisfaction over general conditions in public healthcare is also a factor. As a result, ever more people are turning to private facilities in order to cut down on waiting time or to get more human-centered treatment in a wider sense.

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

“Private healthcare is no longer the privilege of the more well-off,” says Gábor Karai, managing director of Advance Medical Hungary Kft., the Hungarian subsidiary of an international virtual care provider and healthcare organizer. The

“Private healthcare is no longer the privilege of the more well-off. I have several patients who may not earn much but are still willing to pay to get access to care without having to wait and under nicer conditions.” circle of people has widened to those of lower wages, notes Karai, who also works as a GP in District XIX. “I have several patients who may not earn much but are still willing to pay to get access to care without having to wait and under nicer conditions.” The possibility to choose one’s physician is also a consideration. So is better access to fields, for example endocrinology (the treatment of hormone-related diseases), where the national shortage is the highest. Today the market is quite fragmented with thousands of small practices including those operating in apartments; ADVERTISEMENT

consolidation is yet to come. If there is trend to spot, it is more of concentration. The past 1-1.5 years have seen a number of acquisitions. In 2017, Sándor Csányi’s Bonitas 2002 Befektető és Tanácsadó Zrt. become the majority owner of Budai Egészségközpont. Earlier this year, diagnostic imaging company Affidea Diagnosztika acquired peer Főnix-Med, a private healthcare provider. Zsolt Knoll, a renown orthopedic surgeon opened a private clinic with one billion forint capital.

sought after. At this point, we can’t yet talk about a labor shortage, but we are pretty close to it, warns Karai. What private clinics can do is extend the availability of the doctors working for them while trying to recruit new ones. This translates into higher fees; inflation in the sector has been much higher than general at

more than

10%,

Karai notes. “Facilities compete for physicians or nurses not only with domestic, but also with their Western European peers,” he explains.

Wider Spectrum

The largest facilities are also expanding the spectrum of their services and the number of locations they operate at. Swiss Medical has opened a new center in Pest, Budai Egészségközpont is planning to open one next year to provide better access for citizens living on either side of the city, it told the Budapest Business Journal. As for services, the majority of private healthcare providers still focus on outpatient care. The most established also offer day surgery, inpatient care and more complex services. Some facilities now provide urgent trauma care for outpatients. But there are more innovative features as well: Advance Medical is involved in corporate healthcare plans that go beyond general occupational health and focuses on the long-term well-being of corporate

Special Report | 13

Gábor Karai employees. The company, recently acquired by Teladoc, an international telehealth company traded on NSTE, now offers remote on-demand voice/video medical care and consultancy. Unlike most, Swiss Medical is owned and run by physicians, which allows the management to focus on the well-being on their employees. “We forego the profit and would rather pay our physicians well,” Kirschner says. This results in less fluctuation and, eventually more satisfied patients, he claims. The ability to retain professionals is crucial as growing demand for private care also means physicians becoming more

Primus Private Healthcare Association To give patients greater assurance they are in good hands, many of the most established players on the private healthcare market have created an organization, Primus Private Healthcare Association, which issues a certificate to service providers operating according to the standards it sets. Primus also aims to represent the interests of patients using private healthcare services and to promote a sector that meets ethical and safety requirements.

14 | 3

Special Report

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

Building a Healthy Business on Customer Service and don’t speak the local dialect. I spoke German and reasonable Russian at the time, but that market would have been difficult to get back into then. I really liked Hungary; it seemed like the right place to be.” It was also the right business. Diokno not only had practical experience, but also grew up around healthcare. His father was a physician; his mother a nurse; his two sisters work in the pharmaceutical industry. Only his brother has followed a different path, and works for Apple. “This is what I should be doing; it is a service industry, and I love customer service.” The business was initially known as the American Clinic, but while the parent company is still American Clinics International, the business name was changed to FirstMed shortly after 9/11, partly over safety concerns, but also partly because it better reflected the reality. “When we first started we might have had more North American patients, but after a few years there were more from Europe, Asia and the Middle East.” He estimates that

The driving force behind FirstMed Clinics, Dennis A. Diokno, says this is an extremely interesting time to be in the private healthcare business in Hungary, but it was a career he might never have had. If life had followed another path, he could now be a Coca-Cola executive.

around

75%

ROBIN MARSHALL

FirstMed, a multi-disciplinary clinic based in the Hattyúház building close to the Széll Kálmán tér metro station in Buda’s District II, will celebrate its 20th anniversary in February. When he opened up the business here, Diokno had already done something similar in Russia and then China. Having graduated from Thunderbird School of Global Management in 1991 with a Master of International Management degree, and with interesting jobs hard to find in the United States, Diokno took himself off to Moscow. He quickly got three interviews. Nothing came from the first with a pharma company, but the second was with Coca-Cola. He was offered a job, pending the approval of the country manager, who was out of Russia for six weeks. “Had he been in Moscow at the time and offered me a confirmed position, I would probably have taken it,” Diokno

Dennis A. Diokno

March

More healthcare work followed in China, and then in the late ’90s he was sent by his chairman-CEO to look at the possibilities of opening a clinic in Budapest, Prague or Warsaw. “In the end he decided not to invests, so I raised money through family and friends and did it myself.”

and progressed rapidly through the ranks; in less than a year he was marketing director and operations manager, and was promptly hired away by another company to open and run a clinic in Beijing.

“I wanted to come back to Europe,” Diokno recalls. “Even though I am of Asian heritage, my background was in European studies. China is a great place to visit, but it is difficult doing business if you are young

says. The third interview was as little more than an intern for a small private clinic. “I was itching to do something, and I thought I could always go back to Coca-Cola six weeks later. I never did.” He started in

1992

Looking to Return

of the client base are still expats – either posted here for a specific job or living here and working as local hires – with the remainder Hungarians. While the expat base is fairly stable, it is the local business that is growing. “It’s driven by growing awareness of us and private healthcare in general; greater disposable income; and the condition of the state healthcare system. And I think that third one is the largest driver.”

Horror Stories

Very few readers will not have heard horror stories of underfunded state hospitals lacking toilet paper or even soap in public restrooms. Buildings are often in clear need of maintenance, or at the very least a fresh coat of paint. Staff are underpaid, overworked and, increasingly, leaving the profession; in one famous case reported on our bbj.hu website back in June 2017, the Number 3 internal medicine department of Jáhn Ferenc Hospital in southern Pest was closed for a while due to the number of nursing staff quitting their jobs for better wages at the nearby newly opened IKEA store.

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Budapest Business Journal | November 16 – November 29, 2018

More than that, the unofficial so-called “gratuity” system, where patients pay doctors or nurses a “tip” for the care they should be getting free to speed up the treatment narrows the gap between state healthcare and private. “People appreciate the transparency of knowing upfront what you will pay for a service and getting better customer service and a better all-round experience,” Diokno believes. But he takes no pleasure from the situation and is at pains to point out it that the landscape is not universally bleak.

funding and support, and not just my business, but all private clinics.” Diokno says FirstMed’s prices are at the higher end of what the local private healthcare market charges, but even so the growth is clear. Customer service is an important differential, although he says the local private providers are catching up in this regard. There is also a certain section of Hungarian society that likes the “prestige” of going to an international healthcare provider. There is one other advantage FirstMed can offer expats and Hungarians alike: “You don’t have to navigate yourself around the system; we were one of the first private clinics to have a one-stop shop service.”

“I wanted to come back Family Practice to Europe. Even though I Having started out marketing itself as a am of Asian heritage, my family practice or primary care facility background was in European – general practice, some gynecology, pediatrics and orthopedics – it has grown studies. […] I really liked to the extent that it now employs about Hungary; it seemed like the right place to be.” people,

100

“There are pockets of very good healthcare out there; we have arrangements with two or three hospitals where we send patients in more serious cases if it is needed. I feel for the people; it is a difficult situation, although Hungary is not the only place in the world with healthcare challenges; just look at the United States. My business continues to improve because the state system lacks

the vast majority Hungarians. “We have about 30 different specialties now. We have cardiology three times a week; ear, nose and throat almost every day; psychology and psychiatry. This year we will see 18,000-19,000 patient visits. The growth has been phenomenal over the past 18 months.” Not that everything has gone according to plan. For about five years, FirstMed had a sister clinic in the residential area of Hűvösvölgy, further out in Buda, but

Healthcare ///in brief 30% Shortage Among Specialized Nurses The Hungarian healthcare system has some 55,000 specialized nurses but a further 25,000 are needed, which means an almost 30% shortfall, hvg.hu reported based on a survey conducted by the chamber of healthcare professionals (MESZK). The volume of professionals heading for retirement is higher for newcomers, so the rate is expected to get even worse. The Ministry of Human Capacities said that it had ensured an 8% wage increase for the end of the next year, but it did not disclosed further information on timing. A hospital in Győr (120 km west of Budapest) is running joint departments due to its shortage in nurses. A total of nearly 1,700 vacancies were announced in health institutions across the country, hvg.hu reported.

Gov’t Aims to Draw Clear Line Between State, Private Healthcare Hungary’s government aims to make the clearest possible separation between the state and private healthcare systems, state secretary Bence Rétvári said at the Dr. László Batthyány Physicians Association conference recently, azuzlet.hu reported. Rétvári warned in his opening remarks that separating the two types of service would create a great deal of conflict in the coming period. State hospitals will

provide exclusively state healthcare services, while private healthcare services will be provided at different facilities, he added. Mixing the two types of healthcare services creates an unfavorable situation which makes public healthcare services slower, he explained. “If somebody checks in to a state hospital, they should be assured that patients there will only be getting state-financed treatment,” Rétvári said. He also added that HUF 30 billion has been reallocated to “Healthy Budapest Program” this year and HUF 500 bln was devoted to the development of rural healthcare infrastructures, azuzlet.hu reported.

that closed last year. “We got the location wrong,” Diokno says with brutal honesty. “Our thinking was to be where the people were living, to make it easier to visit. But it turns out it is more convenient to come into the city and have an appointment before or after work or during lunch. It was very difficult to make it work; it struggled to break even, while this place [Hattyúház] continues to grow: it is at capacity on some nights.” He says he has a “list of mistakes” he has made, such as taking on too much space too soon at the first location. “For the first six months things were pretty dead, and then things stated picking up, but I had three times as much space as I needed.” That’s far from the case now. FirstMed has the whole of the fifth floor and is negotiating over more space on the fourth. “Next year we are looking at adding some day surgery; nothing too complicated, but a lot of scope cases. Eventually we might buy an arthroscope device: our orthopedics business is very strong, but the price point is not quite there yet for me to justify it.” For now, MRI or CT imaging is not in the picture – if you will excuse the pun. Diokno says it does hold potential, but others are already doing it and he does not wish to “compete in that space”.

International Expansion

There are other spaces where he is happy to compete, however. “We will be opening in Rome sometime in the next six-totwelve months. We are also looking at international expansion into other capital

Special Report | 15

FirstMed patient chart • Employees:

Almost 100

• Specialties:

• Patient visits: • Investor:

18,000 Nimród Kovács

cities in Central and Eastern Europe. To start off, the healthcare offer would be very similar to what we first had in Hungary, before the model here became more comprehensive.” He described this as “urgent care services”, sometimes known as immediate care, dealing with stitches and sprains, coughs and lab work. “There is a burgeoning urgent care industry in the Unites States right now,” Diokno explains. “In Hungary we are looking to expand into other cities, and in Budapest to expand our range of services.” The healthcare sector is attracting a lot of interest he says, and he has received offers to take over the business. While his approach is “everyone has his price”, for now he insists he is going nowhere, although he has taken on a new investment partner: Nimród Kovács, the former UPC boss-turned-wine maker and philanthropist, and a fellow Thunderbird alumnus.

St. Andrea Wine & Gourmet Bar Becomes ‘Life Saving Point’ Budapest’s St. Andrea Wine & Gourmet Bar has announced it is joining the National Ambulance Service’s “Life Saving Point” initiative, committed to helping anyone suffering from a cardiac arrest, according to a press release sent to the Budapest Business Journal. As a result, the wine bar now pledges to provide life-saving treatment inside the restaurant as well as in the immediate vicinity of the Eiffel Palace building, in which it is housed. As part of the program, the St. Andrea Wine & Gourmet Bar

has been fitted with a semiautomatic defibrillator. Some 26 staff members of the restaurant were educated on basic methods to save lives, making sure they could help anyone with a cardiac arrest in need of pre-hospital treatment. This training is one of the key requirements of an establishment becoming a “Life Saving Point.” The brand is being built by the National Ambulance Service to save lives, with the main focus on social responsibility. Those who gain the label become part of a movement to create a safer living environment, according to the press release.

Primus Wants Tax-free Healthcare Benefits Primus, Hungary’s largest association of private healthcare providers with 12 members, has asked the government to allow employers to keep offering some taxfree healthcare benefits to their workers, Primus managing director György Leitner told szon.hu. Previously, employers could offer some preferential healthcare services as non-cash benefits but, from next year, these will no longer be tax free, noted Leitner. Leitner said cumulatively, Hungary’s households spend around HUF 1 trillion a year on healthcare, including buying medicine. This spending is expected to rise by 4-5% per year, online news portal szon.hu reported.

Representatives of St. Andrea Wine & Gourmet Bar showing off their certification from the National Ambulance Service.

16 | 3

Special Report

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Budapest Business Journal | November 16 – November 29, 2018

Digital Record Keeping Aims at Bringing Transparency, Efficiency to Healthcare

practitioners and 85% of outpatient facilities use the cloud-based technology on a daily basis. A total of

500 pieces million

of data have been uploaded to the system. This involves all e-prescriptions (introduced a year ago) but also those made out physically as well. Medical documents such a discharge summaries, data from medical checks and the majority of lab results have also been uploaded in the system, Bálint Szabó, head of department at the National Healthcare Services Center told the Budapest Business Journal. Since EESZT was launched, more than 176 million e-prescriptions have been collected, while the number of prescriptions sent to the system a day exceeds 800,000. In a year, nearly 92 million healthcare-related documents have been fed into the system. In terms of e-profiles, data has been accessed more than 100,000 times, according to information just published by the organization.

Launched a year ago with the aim of making healthcare more transparent, the National eHealth Infrastructure has been widening its circle of data providers to private healthcare facilities.

outpatient facilities and pharmacies joining the platform of the National eHealth Infrastructure (EESZT) last November, private healthcare facilities providing data to the Central Implant Registry or the National Endoprosthesis Implant Registry system also had to join EESZT by November 1.

ZSÓFIA VÉGH

In the wake of publicly financed healthcare institutions including hospitals, general practitioners,

The service, launched a year ago, aims to make healthcare more transparent and treatment more effective by providing healthcare professionals with access to patients’ data in one place. In the past year, 100% of inpatient facilities and pharmacies have joined the platform, while 87% of general

Pharmacies Connected

When ready, the platform will enable healthcare personnel and patients to see information covering everything

DR. ROSE PRIVATE HOSPITAL

DR. ROSE ORTHOPEDIC CENTER

DR. ROSE OBSTETRICS

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Private Hospital Obstetrics Orthopedic Center Budapest Plastic Surgery Corporate Health Care

Dr. Rose offers an expanded range of services for its patients in an attractive and modern environment. Patients are offered examinations in over 30 fields, preventive screenings and excellent specialists without any waiting time. Besides the Private Hospital, the Obstetrics, the Orthopedic Center and the Budapest Plastic Institute, we also operate a Corporate Health Care department. We provide our complex, premium quality health care services with up-to-date equipment and qualified staff amongst stylish surroundings in the heart of the inner city.

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Budapest Business Journal | November 16 – November 29, 2018

from allergies to medication to visits to different healthcare institutes going back five years. The system is also connected to pharmacies so any prescription made up and collected in

“This way, physicians can tell if the treatment is ineffective because the patient did not pick up their prescription or for other different reasons. They can also avoid overdosing or [potentially dangerous] drug interactions,” he adds. the past year is already visible. “This way, physicians can tell if the treatment is ineffective because the patient did not pick up their prescription or for other different reasons,” says Szabó. “They can also avoid overdosing or [potentially dangerous] drug interactions,” he adds. Another key feature of EESZT is the patient summary which, beyond emergency situations, serves a more effective and smoother treatment.

the central system. This meant the development or update of more than 10,000 service providers by

This contains all the general information of the patient from blood type to allergies or any medical issues that has a long-term effect on the condition of the patient. Data can uploaded by the therapist and the family physician. Data will be added to the system retroactively as well, going back five years back. The back-dating process is ongoing, but Szabó expects it will end by early-2020. Since one’s medical history is probably the most sensitive data out there, the system allows patients to manage their privacy settings. Healthcare personnel are given different levels of access: the documents entered into the EESZT are solely available to the general practitioner and the patients’ medical specialists ( but excluding, for example nurses). Patients can decide to prevent making their data available as part of the self-determination process. Thus far, some

3,000 people

have managed the setting of their accounts, but the number of the users is much higher, Szabó says. There are 800-1,200 entries from Ügyfélkapu (Client Gateway) to the residential site: eeszt.gov.hu. Lack of internet access is not a problem – EESZT allows people to manage their settings at Kormányablak, the so-called government

Special Report | 17

different

Bálint Szabó window. (EESZT can be accessed and managed via Ügyfélkapu).

Software Upgrades

The introduction of EESZT meant that healthcare providers’ software had to be made compatible with

IT system providers. Since the update was required by law, the companies had to update the systems free of charge to the extent of the conditions previously agreed upon between them and their healthcare institutes. “So, if the service agreement contained such clauses, they did not charge for the update,” Szabó says. This can also be a competitive edge for software providers as healthcare facilities are likely to commission those offering the best services, he adds. The system is already suitable for paperless treatment, according to the expert. The platform will continue to be updated. Besides uploading data retroactively, the introduction of telemedicine services, the development of digital image forwarding between healthcare facilities and the creation of healthcare registers are among the plans. Soon mobile applications can be developed which will allow users to access e-prescriptions, medical documents and also book appointments. Beyond transparency, joining the system can lead to a more cost-efficient and effective care. By looking at the data, physicians can avoid doing the same examinations twice or prescribing the same medicine, thus saving money. They can also get a much better overview of their patients, which should help them make a more accurate diagnosis.

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PRESENTED CONTENT

Life Sciences Success Stories in Hungary The Hungarian Investment Promotion Agency (HIPA) talks to the Budapest Business Journal about recent life sciences success stories in the country. During the past few decades, life sciences have become one of the growth engines for economies worldwide. The aim of many countries is to move towards a knowledgebased economy, combining natural sciences with experiences in IT-related areas and digitalization. The life sciences sector is considered to be among the most technology-driven and solution orientated sectors of the industry. One of Hungary’s most traditional economic sectors is life sciences, a field that has seen almost 100 years of innovation, highly specialized technical developments and notable exports to the global market. Academic institutions, Hungarian and global players, innovative small- and medium-sized companies strengthen the ties between science and industry to boost the outcome for the country. The geographic location of the country, combined with highly skilled staff as well as an excellent technical and scientific background, have positioned Hungary as an ideal location to do business on the European life sciences map. Based on the location and the business environment, Hungary can provide several advantages to life sciences companies. In Hungary, the life sciences industry is diversified and consists of two sub-segments: biotechnology and pharma on one hand, and medical devices on the other. Pharma, medical devices and biotechnology produce an important and growing share of the Hungarian economy. Eight out of the global top ten pharma and biotech companies have manufacturing or R&D activities in Hungary. In 2017, more than

48,000 people

were employed here by pharma and medical device companies.

Economic Flagship

The pharmaceutical industry has always been one of the flagships of the Hungarian national economy. Pharmaceutical companies contributed 6.8% of the total manufacturing value in 2017. The four largest manufacturing bases (Richter, Teva, Egis, and Sanofi-Aventis) performed 85-90% of the total production and export activities of the industry. Within total Hungarian industrial R&D activity, 40-45% comes from the pharmaceutical industry. In 2017, the total amount of

continue to expand their production in the countryside of Hungary. Leading animal vaccine producer, CEVA-Phylaxia, established in 1912 in Budapest, export 95% of its production worldwide. During the last two years, GSK invested more than EUR 55 mln in Hungary. These investments help to secure the long-term supply of vaccines to meet global demand and improve the technology on site with 110 newly created jobs.

Investment Incentives

One of the main aims of Hungarian government is to increase the competitiveness of the national economy. The corporate income tax rate (CIT) has been lowered

R&D expenditures of the pharma industry reached HUF 67 billion. The manufacturing of medical devices is another traditional sector of the Hungarian economy where there are

some

150

strongly export-driven Hungarian SMEs: the export ratio exceeds 90%. These flagship companies have a special role and characteristics, e.g.: flexibility, innovation, and strong export capability. Although biotechnology is a relatively young science, its related industries and research fields have longstanding traditions in Hungary, giving companies access to a deep knowledge-base. The continuous development of life sciences is supported by a network of academic research expertise. Academic institutions provide the sector with welltrained people, representing a strong pillar of Hungary’s educational system. In 2017, the total number of life science students at universities amounted to more than 24,300 and 3,700 students graduated. The Hungarian labor force is well qualified and cost effective, which increases the country’s international competitiveness. In addition to that, the large number of high quality research institutions is a testament to Hungary’s traditional strengths in science and technology. There are four main centers of R&D which are connected to universities famous for medical and health sciences: Budapest, Debrecen, Szeged and Pécs. Hungary can offer an attractive environment for investment and R&D activities within the network of scientific centers, enabling cutting-edge technologies and continuously growing business opportunities. Highly educated professionals, a rich tradition in natural, technical and medical sciences, an advantageous geographic setting and a supportive business environment for investment have been the key

drivers to make Hungary a favorable location for life science investments.

One-stop Shop

HIPA provides professional consulting services to life-science companies free of charge in a one-stop-shop service model, giving information on the business environment, supporting them in selecting a business location, providing tailor-made incentive offers and information on state subsidy issues and dealing with public authorities. During the last year, HIPA was involved in significant investment decisions in favor of Hungary in this field. Leading contact lens manufacturer CooperVision has announced further expansion plans in Gyál (23 km southeast of the center of Budapest). As a result of a

EUR 24 million investment,

the U.S. company will establish a new distribution center, double its capacity from 600 million contact lenses to 1.2 billion per year, and implement new IT systems that will make the Hungarian location one of its most advanced, state-of-the-art facilities globally. Following its recent expansion, German healthcare company, B. Braun employs more than 2,000 people in Hungary. Based on its new investment plan, the factory in Gyöngyös (78 km northeast of the capital) will double the capacity of medical devices manufactured. Besides the expansion, significant research and development activities and technological development is managed by the company. Outside of Germany, Hungary is the only location where B. Braun has established and operates a software-development center. The company was a pioneer in 1991 in starting the establishment of modern dialysis care in the country and currently operates 18 dialysis centers countrywide, providing treatment to 2,500 chronic patients. Well recognized names in the pharma sector such as Gedeon Richter and EGIS

in Hungary, the lowest rate in the European Union. Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers a wide range of incentives to facilitate investments and reinvestments by life science companies. Subsidies may be granted as regional aid or specific aid, such as R&D subsidies. As of January 2017, a new incentive scheme was introduced by HIPA to support the industrial research and experimental development activities of large life science companies throughout Hungary, including Budapest. The aim of the new R&D cash subsidy-scheme is to promote the establishment of new R&D centers, besides supporting companies already performing R&D activities in Hungary.

Hungary can offer an attractive environment for investment and R&D activities within the network of scientific centers, enabling cuttingedge technologies and continuously growing business opportunities. Highly educated professionals, a rich tradition in natural, technical and medical sciences, an advantageous geographic setting and a supportive business environment for investment have been the key drivers to make Hungary a favorable location for life science investments. HIPA has also established a new nonrefundable subsidy scheme to support companies considering technologyintensive investments without the requirement to create new jobs, provided that the company commits to increase productivity within a four year period. The aim of the incentive is to implement new technologies that bring companies to the next level in their field of activity.

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

Special Report | 19

Private Hospitals and Clinics

www.affidea.hu

budai egészségközpont www.bhc.hu

mediCoveR egészségközpont www.medicover.hu

dR. Rose egészségügyi szolgáltató kFt. www.drrose.hu

Főnix-MED Zrt. www.fonixmed.hu

RóbeRt káRoly magánkóRHáz

pozitRon-diagnosztika központ

www.robertkorhaz.hu

www.pet.hu

duna mediCal CenteR kFt.

k-med kFt.

www.dunamedicalcenter.org

sasszemklinika.hu

otHeR seRviCes

8,846

Affidea Diagnosztika Kft.

Imaging diagnostics: CT, MR ultrasound, x-ray, mammography, bone density measurement, isotope diagnosis

1991

Budai Egészségközpont Kft.

Anesthetics, internal medicine, dermatology, diabetology, dietetic counseling, endocrinology, vascular surgery, physiotherapy, dentistry, occupational health care, obstetrics, gastroenterology, geriatrics, spine surgery, spine surgery, pediatrics, hematology, hepatology, neurosurgery, immunology, infectology, cardiology , nephrology, neurology, gynecology, oncology, orthopedics, osteoporosis surgery, plastic surgery, proctology, psychiatry, psychology, pulmonology, radiology, rheumatology, sports cardiology, surgery, ophthalmology, traumatology, urology

Complex spinal reflexology, inpatient care, preventive screening tests, management screening, pediatrician, child screening, arteriography, endoscopy, laboratory tests, imaging diagnostics, cancer screening, physiotherapy, medical massage, allergy testing, food intolerance testing, vaccination consulting, infusion therapy and development

2000

Medicover Egészségközpont Zrt.

Laboratory tests, internal medicine, dermatology, bone densitometry, ODM, CT examinations, dietetics, endoscopy, physiotherapy, dentistry, ear nose healing, gastroenterology, pediatrics, physiotherapy, gastric mirroring, cardiology, mammography, MR examinations, neurology, gynecology, orthopedics, proctology, psychiatry, pulmonology, rheumatology, surgery, colon cancer screening, ophthalmology, traumatology, ultrasound tests, urology

Hospital operations, health insurance, dentistry, vaccination centre, MRI, CT, ODM international medical tourism

1993

2,626

Dr. Rose Egészségügyi Szolgáltató Kft.

Allergology, internal medicine, dermatology, diabetes, dietetics, endocrinology, ear nose, gastroenterology, immunology, cardiology, manual therapy, neurology, family planning, gynecology, pregnancy, obstetrics, orthopedics, plastic surgery, aesthetic interventions, psychiatry, proctology, radiology, rheumatology, surgery, ophthalmology, somnology, urology, pediatrics

Complex inpatient care, diagnostic tests, prevention screening tests, annual card packs, surgeries, rehabilitation, corporate health services, health insurance packages, occupational health care, international vaccination center

2005

2,193

FŐNIX - MED Egészségügyi Szolgáltató Zrt.

Allergology, anesthesiology, internal medicine, dermatology, Pediatrics, diabetes, occupational health, ear nose, cardiology, clinical oncology, gynaecology, rheumatology, aviation medicine, surgery, sports medicine, ophthalmology, urology, ultrasound diagnostics, lab tests

Outpatient care, corporate health programs, preventive screening tests, management screening, general practitioner service, patient transport, assistance, special rescue, medical attendance, locomotor rehabilitation

2,037

Róbert Károly Magánkorház Zrt.

Dermatology, diabetology, endocrinology, gastroenterology, hand surgery, sexual diseases, gynecology, orthopedics, surgical examination, ultrasound diagnostics, urology andrology, ear and nose archeology, cardiology

Gynaecology, infertility centre, aesthetic restoration surgery, hand surgery, gynecological oncology surgery, vascular surgery, spine surgery, thyroid surgery, proctology, perineology, abdominal surgery, plastic surgery

1,543

PozitronDiagnosztika Kft.

Cancer diagnostic PET / CT coronaria CT, computer tomograph (CT) examinations, complex cardiology, psychiatric and endocrinological diagnosis, labordiagnostics

Radiopharmacon production

1,542

Duna Medical Center Kft.

Allergy, internal medicine, diabetology, hematology, dermatology, dietetics, vascular surgery, occupational health, ear and labyrinth arthrosis, gastroenterology, child gastroenterology, pediatric cardiology, cardiology, infertility, neurology, gynecology, oncology orthopedic traumatology, proctology, psychology, psychiatry, rheumatology, ophthalmology, pulmonary and respiratory allergology, urology, anesthesiology, bariatric surgery

Hospital (inpatient) and oneday surgery in the following fields: vascular surgery, ear and nose arthrosis, gastroenterology, general surgery, neurosurgery, gynecology, orthopedic traumatology, proctology, ophthalmology, urology, bariatric (obesity) laboratory tests, molecular diagnostics, bone density test, ultrasonic tests, comprehensive screening rehabilitation physiotherapy and physiotherapy

1,260

K-MED Kft. Saszemklinika

6,723

6,034

Refractive surgery (laser eye surgery)

–

2002

2011

2004

2014

1997

no. oF Full-time employees on July 1, 2017 out oF Full-time employees, no. oF doCtoRs

aReas oF speCialty

yeaR establisHed

aFFidea diagnosztika

name oF opeRating Company

Company Website

total net Revenue in 2017 (HuF mln)

Rank

Ranked by total net revenue

372

407 34

458

Ÿ Ÿ

122

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

– Affidea Diagnostics B.V. (100)

györgy leitner – –

1054 Budapest, Szabadság tér 7. (1) 803-6464 (1) 318-8687 –

Medikomp Szolgáltató és Kereskedelmi Kft. (40), Bonitás 2002 Zrt. (60) –

pál péter varga Anett Végh András Kiss

1126 Budapest, Nagy Jenő út 8. (1) 489-5200 (1) 489-5210 info@bhc.hu

MI Hungary Kft. (100) –

péter grossmann – –

1134 Budapest, Váci út 29–31. (1) 465-3100 – info@medicover.hu

Tamás Tibor Bleier, Iván Elemér Illanitz (100) –

tamás tibor bleier Anikó Forgon Boglárka Keresztes

1051 Budapest, Széchenyi tér 7-8. (1) 377-6737 (1) 348-0486 info@drrose.hu

Opinion Optimum Kft. (26), Opinion Invest Kft. (41.67), Opinion Basic Kft. (24), Secret Control GPS Kft. (8.33) –

laura Csidei, mihály kocza, béla Rácz Laura Csidei Viktória Ordódy

1138 Budapest, Váci út 198. (1) 783-1650 (1) 488-0413 fonixmed@ fonixmed.com

MedAlliance Holding Zrt. (Ÿ), Lajos Károly Fábián (Ÿ) –

– András Krämer –

1135 Budapest, Lehel utca 59/C (70) 377-4845 – info@ robertkorhaz.hu

– Cross Border Management Holding GmbH (100)

Félix gábor gombos András Kókay –

1117 Budapest, Hunyadi János út 9-11. (1) 505-8888 (1) 505-8889 info@pet.hu

– International Medical Centers B.V. (100)

János bartók – –

1095 Budapest, Lechner Ödön fasor 7. (1) 790-7070 – info@ dunamedicalcenter. com

Varga és Társa Befektetési Kft., PMSZO Holding Kft. (100) –

botond Halmai Karolina Masicza Éva Farkas

1321 Budapest, Thán Károly utca 3-5. (1) 250-5505 (1) 250-5505 info@ sasszemklinika.hu

Special Report

FiRstmed - FmC kFt. 10 www.firstmed.hu

Ht mediCal CenteR kFt. www.medicalcenter.hu

emineo egészségügyi és 12 szolgáltató kFt. www.emineo.hu

istenHegyi magánklinika 13 www.ihklinika.hu

American Clinics International

Internal medicine, gynaecology, orthopaedics, cardiology, dermatology, ophthalmology, pediatric surgery, ear and laryngeal arthritis, urology, neurologist, physiotherapy, psychiatry, psychology, dietitian, endocrinology, child endocrinology, surgery, occupational health, lab, sleep diagnostics

Partnership with Fürster Dentistry

HT Medical Center Kft.

Allergy and clinical immunology, audiology, internal medicine, dermatology, diabetes, endocrinology, vascular surgery, physiotherapy, dentistry, orthodontics, ear nose and throat, gastroenterology, pediatrics: general, pediatric, infant and child cardiology, cardiology, histopathology, orthopedics, osteoporosis and menopause clinics, psychiatry, surgery, oral surgery, ophthalmology, obstetrics and gynecology, urology, radiology: mammography, x-ray, ultrasonic tests, laboratory

One day surgery, mammography filtering center, traditional Chinese medicine, occupational health services

448

EMINEO Egészségügyi és Szolg. Kft.

Orthopedics, traumatology, anesthesiology, internal medicine, diabetes, ear and nose surgery, cardiology (heart surgery, loaded ECG), neurology, urology, radiology (x-ray, ultrasound)

In-patient care service, orthopedic traumatology, knee surgery, foot surgery, shoulder surgery, hand surgery, spine, musculoskeletal and cardiological screening, soul theraqpy, research and development, health insurance consulting, Sensolite, manual therapy, physiotherapy

399

Istenhegyi Magánklinika Zrt.

Endocrinology, vascular surgery, gastroenterology, cooled prostate thermotherapy, immunology, incontinence, climax ambulance, linear shockwave therapy

1994

Kelen Kórház Egészségügyi Ellátó és Szolgáltató Kft.

Andrology, angiology, internal medicine, diabetology, endocrinology, gastroenterology, cardiology, nephrology, pulmonology, dermatology, laser therapy, IPL, dietetics, food intolerance examination, dentistry, nose and throat, genetic counselling, pediatric surgery, orthopaedics, plastic surgery

kelen kóRHáz

–

1998

Allergology, angiology, internal medicine, dermatology, diabetes, dietetics, breast imaging, endocrinology, vascular surgery, occupational health, ear nose, gastroenterology, paediatrics, immunology, cardiology, neurology, gynaecology, pulmonology, radiology, rheumatology, surgery, ophthalmology, urology, lymphatic ambulance

Laboratory tests, shock waves therapy, manager screenings

2008

Oxygen Medical Kft.

Allergology, dermatology, diabetes, endocrinology, vascular surgery, physical therapy, dentistry, occupational health, otorhinolaryngology, gastroenterology, cardiology, laboratory testing, laser hair removal, ophthalmology, rheumatology, ultrasound, urology

1,018

682

348

www.kelen.hu

medoC egészségközpont egészségügyi szolgáltató kFt.

295

info@medocklinika.hu

oxygen mediCal kFt. www.oxygenmedical.hu

pRoFessional

17 mediCal kFt. www.professional-kft.hu

gáspáR mediCal CenteR www.gasparmed.hu

HaiR-aestHetiC CliniC kFt. 19 www.hairhungary.hu

Ÿ= would not disclose, NR = not ranked, NA = not applicable

290

–

2011

1995

2009

2008

166

Professional Orvosi Kft.

Outpatient care

–

1990

155

Gáspár Medical Center Kft.

Allergology, ear and nose surgery, dermatology, soft laser therapy, plastic surgery, vascular surgery, gynecology, urology

1996

Hair-Aesthetic Clinic Egészségügyi Szolgáltató Kft.

Hair transplant, plastic surgery

2013

no. oF Full-time employees on July 1, 2017 out oF Full-time employees, no. oF doCtoRs

otHeR seRviCes

yeaR establisHed

name oF opeRating Company

Company Website

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

aReas oF speCialty

total net Revenue in 2017 (HuF mln)

Rank

20 | 3

Ÿ Ÿ

11 0

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

– American Clinincs International Inc. (100)

dennis diokno Andrea Vízvári –

1015 Budapest, Hattyú utca 14. (1) 224-9090 – info@ firstmedcenters.com

József Tóth (100) –

József tóth – –

1173 Budapest, Pesti út 177. (1) 256-4655, (1) 256-0679 (1) 257-5731 info@ medicalcenter.hu, valaszolunk@ medicalcenter.hu

Zsolt Knoll, Kálmán Fábián, Veronika Börzsei-Knoll (100) –

veronika börzseiknoll, zsolt knoll Anikó Ferró –

1117 Budapest, Nádorliget utca 8/B (1) 203-1288, (30) 438-0172 – emineo@emineo.hu

(100) –

lászló Rudas – –

1125 Budapest, Istenhegyi út 29-31. (1) 224-5424 – info@ihklinika.hu

Zsuzsanna Kövesd, Pál Tamás Németh (100) –

tamás székely, zsuzsanna kövesd – –

1119 Budapest, Than Károly utca 20. (1) 205-0205 (1) 203-0457 kelen@kelen.hu

Andrea Szegedi (100) –

ádám bálint – –

1132 Budapest, Visegrádi utca 74. (1) 783-6004 (1) 783-6005 www.medocklinika.hu

– Hommond Sales LLC (100)

katalin putz – –

1042 Budapest, Árpád út 47. (20) 554-1498 (20) 554-1498 info.ujpest@ oxygenmedical.hu

András László (50), Edit Kelemen (50) –

andrás lászló – András László

1037 Budapest, Bécsi út 85. (1) 317-0631, (20) 951-1615 (1) 317-2035 info@ professional-kft.hu

Lajos Gáspár, Eszter Gáspár (100) –

eszter gáspár, lajos gáspár – –

1085 Budapest, József körút 37-39. (1) 317-8175 – info@gasparmed.hu

Dávid Zakariás (100) –

sándor béres, dávid zakariás – –

1026 Budapest, Pasaréti út 22. (30) 883-6103 (1) 386-2412 info@hairhungary.hu

This list was compiled from responses to questionnaires received by November 14, 2018 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

www.bbj.hu

Budapest Business Journal | November 16 – November 29, 2018

Socialite Getting a Culinary Taste for Budapest I found Taste Hungary online when I was looking for someone to recommend restaurants that were off the beaten track in Budapest. Since then, Carolyn and Gábor Bánfalvi have been my go-to resource when I want to find out anything about culinary Budapest. DAVID HOLZER

The Bánfalvis founded Taste Hungary in 2008, after Carolyn published two culinary guide books to Budapest and Hungary. They were already gourmands but researching the books gave them an even deeper understanding of the food and wine of this country. As Gabor told me, “Because of this, we realized we could help travelers plan their trip and show them around. We had a few clients in the beginning, and they spread the word about us and Hungarian food and wine culture. Now we have our own tasting room on Bródy Sándor utca, and have just celebrated our tenth birthday with a busy fall season.” On a crisp, fall Sunday not so long ago, I joined a charming American couple named Barbara and Bryan Vincent from Phoenix, Arizona on the Sunday Brunch Edition of Taste Hungary’s Budapest Culinary Walk. Our guide was the wonderful Fanni Ungváry. Her English was perfect and she clearly knew her stuff.

healthy looking individuals and families, Szimpla has a nice, funky vibe about it. We began with a Unicum tasting. Or, rather, Barbara and Bryan did. I tasted Unicum in the dim and distant past and have no desire to do so again, although I’m sure it has the medicinal properties claimed for it. In any case, after a couple of Unicums, you’re feeling no pain anywhere in your body. While Barbara and Bryan sipped their Unicum and tried not to pull faces, Fanni told us the story of the drink. Once again, I urge you to take the tour to find out for yourself. I’ll just say that it involves a certain Dr. Zwack, Royal physician to the

18th century

We met at the Centrál Kávéház at Károlyi utca 9, close to the Ferenciek tere metro station. The Central is a satisfyingly airy, characterful coffee house

built in

1887.

I could have happily stayed at the Central for the entire morning listening to Fanni. I won’t tell you everything she said – you’ll have to take the tour yourself – but she was full of fascinating arcane knowledge. To whet your appetite, I’ll share two things Fanni told us.

Open all Hours

Around the time that the Central was built, Budapest was growing rapidly. The city’s population doubled every ten years. There weren’t enough rooms for the people pouring into the city, so strangers shared the rental of single rooms. One person would sleep during the daytime and work at night, another would do the reverse. Because of this, people needed to have places to go at any time of night and most coffee houses were open round the clock.

In the late 1890s, every sector of Budapest’s population had its own coffee house. The Central was, for many years, a meeting place for the city’s literary set. It was like a meeting room or office, where deals were done, and gossip exchanged. Fanni even explained the history of the cakes we were eating. I had no idea, for example, that Eszterházy torte, made of alternating layers of buttercream and almond meringue, was named after a particular member of the Esterházy dynasty who had a sensitive stomach. Budapest confectioners were commanded to create something he could eat, and they invented what might be the first ever gluten-free cake. I’ve spent a couple of bitterly cold, shouty nights in Budapest’s ruin bars but they’ve never appealed to me. Far better to experience one at a decent hour on a Sunday morning.

Hapsburg Court, dastardly Russians, and justice being done. Here’s a story Fanni didn’t tell us that I unearthed rooting around online and can share with you. Apparently, many Hungarian engineers worked in Libya in the 1980s. Libya is Muslim, and alcohol is strictly forbidden. The Hungarian engineers managed to convince Libyan customs officers that Unicum really was medicine. This worked like a dream, until an engineer who’d probably been on the Unicum dropped a bottle and the customs officers discovered the sticky, highly alcoholic truth. After Fanni had led us into Szimpla’s colorful courtyard, she went to prepare a tasting of Hungarian cheese and meats. I asked Barbara and Bryan what they thought of the tour. “We often take cooking classes in cities we visit,” Bryan said, “but this is much better. It’s far more personal and I love the feeling of actually being in the culture.” After we’d sampled the delicious cheese and meats, we left the Szimpla. Next stop, a few meters down the street, was a food market. Before Fanni headed off to buy lángos, I made my excuses and left. Don’t get me wrong, I love lángos, deep fried dough covered in garlic paste, sour cream, grated cheese and occasionally other slightly more exotic ingredients like mushrooms. But lángos is incredibly filling and I make it a rule to only have one a year.

Best Ruin

Fanni was pleased to discover I’d never been to Szimpla on Kazinczy utca, the original and apparently still the best of all the ruin bars. Even in broad daylight, packed with

Although I dropped out of the tour after a couple of hours, it lasts for four and ends with a wine tasting. I’m sure this is excellent. Taste Hungary offers a wide range of culinary experiences. You might like to try the Budapest Christmas market walk. Go to www. tastehungary.com to find out more.

Hauer Confectionery & Café Traditional Hungarian Cakes and Pastries Breakfast & Sandwiches· Coffee As You Like It Selected Premium Drinks H-1088 Budapest, Rákóczi út 47-49. +36 1 612 1313· hauercukraszda.hu facebook.com/hauercukraszda

BBJ_Hauer_ad_252x77_cmyk_300dpi_composite_III_v4_.indd 1

10/13/2018 10:12:52 AM

22 | 4

Socialite

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Budapest Business Journal | November 16 – November 29, 2018

Hungarian Reds Ramp it Up The “Hungarian Wines of Excellence” (Borkiválóságok) books for 2018/2019 have recently been published and the results are pretty insightful, implying that Hungarian red wines are no longer playing second fiddle to whites. ROBERT SMYTH

In the white wine book, 270 wines have been named as Wines of Excellence, from 656 entrants. Of those 270 dry and sweet white wines, nine were named as Top Wines of Excellence (the same as last year): eight are from Tokaj and one from Balaton. Tokaj Aszú is among the greatest sweet wines of the world, if not the greatest, and five were judged to be Top Wines of Excellence: Barta’s Öreg Király dűlő 6 puttonyos 2013, Bodrog Borműhely’s 6 putt 2013,

The Wines of Excellence should be pure and correctly made, satisfying the general expectations of a quality wine. They should have at least medium or high aromatic intensity, depending on the given grape. Positive attributes (for instance complexity or wellproportioned structure) should be present beyond evident primary fruitiness. A Top Wine of Excellence should be complex and perfectly balanced and have refinement, sophistication, elegance and a positively long finish. The ageing potential should also exceed the average. The wines were blind tasted over six days by five committees of wine experts in the first round and then by four committees in the second round.

Chateau Dereszla’s 5 putt 2010, Dobogó 6 putt 2010 and Pelle Pince’s 6 putt 2013. Pint-sized (3.6 hectares) Pelle’s wines are made by Dénes Szarka who has his own, even smaller winery with 2.5 hectares of vines. He has a Midas touch with sweet wines, in which there’s always balance between richness and freshness, and his own sweet Tokaj Cuvée 2016, a blend of Furmint, Hárslevelű and Sárgamuskotály, also made it as a Top Wine of Excellence. That leaves just three dry wines that captured top gong. Oremus’ Mandolás Furmint was once a big oaky beast but the Spanish-owned winery based in Tolcsva has fine-tuned its winemaking over the years and this wine is now consistently balanced, layered and complex with Furmint’s quince and almond notes coming nicely through, enhanced with a brushing of oak. Rather than going for single vineyard wines, Oremus has long made an estate Furmint with the aim of achieving a balanced expression of its vineyards. The 2016 Mandolás offers plenty of bang for the buck and costs HUF 3,850 from Bortársaság.

Elusive Character

The other dry Tokaj to achieve the top award is Tokaji Furmint Sec 2015 from Királyudvar (HUF 5,300 from Mitiszol. hu), which applies biodynamic grape growing to make wines of great purity and vibrancy, but with real consistency, too. Again, this wine is about balance and also captures Furmint’s trademark but often elusive quince character. Those who say Furmint lacks fruit – as I have done on occasion – should look at these two fine specimens.

Noble Furmint is far superior to the humble Olaszrizling grape, right? Well, the only other dry white to make it as a Top Wine of Excellence was made from this pan-Central European workhorse of grape. The wine in question, Aranyom 2017 from Balatonboglár’s relatively unknown Szabó & Fia, impressed the jury for its “seductive and complex aromas”, and being “explicit and unique”. It is a real bargain that will sit in the HUF 1,5003,000 category and should be out soon. In the Red and Rosé book, 643 wines (468 reds and 175 rosés) were submitted from 20 regions with 295 making it as Wines of Excellence, a total of 222 reds and 59 rosés. “It is a remarkably high number considering that Hungarian wines are still dominated by white wines,” states the red wine book. An all-time high of 14 have been named as Top Wines of Excellence, all red, representing the regions of Villány, Szekszárd, Balatonboglár and Eger. A very strong performance was put in by the local grape Kékfrankos; despite being Hungary’s most planted grape, it has long played a backseat role to more fancied international grapes. That is until Hungarian vintners realized that indigenous varieties are where it’s at. It makes mediumrather than fullbodied wines and the alcohol level rarely pushes past 13.5%, yet it lacks nothing in terms of depth.

Classic Intensity

It is also interesting to see that the five single-varietal Kékfrankos reds to be named Top Wines of Excellence came from a variety of regions. Konyári Piritye Kékfrankos

2015 from the Balatonboglár wine region on the south side of Central Europe’s largest lake, oozes Konyári’s classic intensity with pristine purity of fruit and beautifully integrated oak. Soltész Premium Kékfrankos 2015, which is the top range of the large Eger producer Ostorosbor, showed that big can be beautiful. Szent Gaál Szekszárdi Kékfrankos 2016 marks a return to form for the Tolna-based winery. From Villány, the Csányi winery, the region’s biggest producer, showed that it is not just about bottom-shelf wines with an impressive wine from its premium range, Teleki Selection Villányi Kékfrankos 2015. Vylyan’s Kékfrankos 2015 stands up very well when tasted alongside the winery’s other international varietal offerings. The riper style from down in Villány is certainly for those who may find wines from the grape lacking in body and weight. Two other wines were blends that contain a high proportion of Kékfrankos: Egri Korona Borház Cabernet Sauvignon – Kékfrankos Barrique Selection and Adrián Bősz Bikavér 2012. Of the Bordeaux varietals, Cabernet Franc put in the strongest showing with five wines claiming the top gong. Two came from Villány: Cabernet Franc 2016 from the barely known Bognár and Vylyan Mandolás Cabernet Franc 2012. (Vylyan also achieved the top prize for its Syrah 2013). From Szekszárd, Cabernet Franc 2015 by Ákos Sümegi, made it a Wines of Excellence to remember for newcomers. Takler’s basic Cabernet Franc has always been a real go-to red and the 2016 (HUF 3,090 from Bortársaság) is another Top Wine of Excellence. The other two top reds are from Villány: Attila Gere’s Cabernet Sauvigon Barrique 2013 and Jeckl’s Il Primo Vörös 2013, a blend of Cabernet Sauvignon, Cabernet Franc and Merlot.

It’s only one reason why you should have a bite of real China. But we could list the reasons for 100 days.

BIANG

BISZTRÓ by WANG MESTER

6th distr., Biang Bisztró Oktogon – Teréz krt. 20. 9th distr., Biang Bisztró Vámház – Vámház krt. 5.

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Budapest Business Journal | November 16 – November 29, 2018

Kids Charity Party Raises Almost HUF 5 mln The annual Fireworks Night charity fund raising party put on by expat community portal XpatLoop.com looks likely to have raised HUF 4.5 million for Hungarian children in need, though the organizer is still hopeful of drumming up a little more financial support. “I’d like to thank everyone for their support in making the Xpat charity event a success again,” XpatLoop founder Stephen Linfitt told the Budapest Business Journal. The money raised on October 27 will be split between three charities. UNICEF Hungary works to save children’s lives, to defend their rights, and to help them fulfil their potential, from early childhood through adolescence. The Magic Lamp Wish Granting Foundation, also known by its Hungarian name of Csodalámpa, helps children aged 3-18 suffering from life-threatening illnesses. The Young People in Need (Rászoruló Fiatalok) non-profit organization focuses on solutions to emotional abuse of Hungarian children up to the age of 18, and also supports other local charities helping children in need. The party also serves as the portal’s birthday party, with XpatLoop celebrating its 18th anniversary this year.

Socialite | 23

Law Firm Celebrates 1st Decade With Palace Party Regional law firm Kinstellar celebrated its 10th anniversary in Budapest with a client party at the Hungarian National Gallery in the Royal Palace on Friday, November 9.

Stephen Linfitt, XpatLoop, with Éva Patzauer, of Csodalámpa, Deputy Head of Mission at the British Embassy Caitlin Jones, and Gergely Papp, director of events at Budapest Marriott Hotel. Photo by Russell Skidmore for XpatLoop.com.

Granting Wishes

Gábor Patzauer, founder and president of Csodalámpa, said: “It was a great honor again, for the sixth time, that our Magic Lamp Foundation was chosen as a beneficiary of the Xpat charity party. [.…] I would like to thank XpatLoop.com and its readers, special guests and performers for their support of Magic Lamp’s mission to grant wishes for children suffering from a life endangering illness.” Master of Ceremonies for the evening was Hans Peterson, with this year’s live auction – always a major contributor to the funds raised on the night, being run by celebrity chef Marvin Gauci, the owner of the Caviar & Bull restaurant, who had flown in especially for the event from Malta. More on the party, including photo galleries, can be found on the www.xpatloop.com website.

HEALTH AS A GIFT Shop health vouchers online at www.oxygenwellness.hu or at our wellness center’s reception.

BBJournal.18.dec:Layout 1 11/13/18 5:30 PM Page 1

1036 Bp., Kiskorona u. 7. Phone: +36 1 2500288 Ticket: obudaitarsaskor.hu jegymester.hu CHARITY CONCERT BY SAINT EPHRAIM MALE CHOIR 2nd December, 5 p.m. BAROQUE PLUS Franz Liszt Chamber Orchestra 5th December, 7.30 p.m. VIKTOR WEISZ (vocals) AND BLUE DANUBE CONCERT-SALON ORCHESTRA 6th December, 7 p.m. VIVA ITALIA! Anima Musicae Chamber Orchestra Featuring: Massimo Mercelli – ﬂute 7th December, 7 p.m. BLACK AND WHITE Emese Mali – piano 8th December, 7 p.m.

Kinstellar, which describes itself as Emerging Europe and Central Asia’s leading independent law firm, was formed a decade ago when London-based Magic Circle law firm Linklaters spun off its CEE offices in Bratislava, Bucharest, Budapest, and Prague. Both Csilla Andrékó, partner of the Budapest office, and Jason Mogg, formerly managing partner of the firm, now senior partner, mentioned that Kinstellar was formed just weeks after the collapse of Lehman Brothers, which ushered in the financial crisis. “You might think it was not a good time to launch a firm,” Andrékó said. “There is never a bad time to make a good decision. Ten years have passed, we are still here and stronger than ever.”

More Flexible

The aim had been to create “an international, stable, Magic Circle standard law firm that was more flexible to market tendencies. We had to be very disciplined, but we managed to make this unique combination,” Andrékó added. Mogg noted that Kinstellar had “developed, strengthened and grown the business”, had expanded from four offices to ten, and since the spring has linked up with a “sister firm operating in nine jurisdictions in Southeast Asia”. The party featured around 200 guests, drawn from Kinstellar Hungary’s client list, with all the firm’s partners also flying in from various offices. Entertainment included a light show called Glowria, live music by Hungarian-U.S. pop star Viktor Király and a DJ set. There were no parting gifts for guests, the money instead being donated to a foundation dedicated to helping chronically sick children.

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