Mehiläinen
| Company type | Private |
|---|---|
| Industry | Healthcare, Social care |
| Founded | 1 January 1909 in Helsinki, Finland |
| Founder | Reguel Löfqvist, Akseli Koskimies, Walter Sipilä, K. F. Hirvisalo |
| Headquarters | Helsinki , Finland |
Area served | Finland, Sweden, Germany, Estonia |
Key people | Janne-Olli Järvenpää (CEO as of 2014) |
| Products | Private healthcare, public healthcare, social care services, mental health support, digital health services (OmaMehiläinen platform) |
| Owner | CVC Capital Partners (56%), LähiTapiola group (20%), Varma Mutual Pension Insurance Company (20%), State Retirement Fund of Finland, Ilmarinen insurance company |
Number of employees | 18800+ (2018) |
| Website | www |
Mehiläinen—which translates to "bee" in Finnish—is a provider of social and healthcare services operating across Finland, Sweden, Germany, and Estonia, catering to both public institutions and private clients. Its principal shareholder is CVC Capital Partners.
1909-1999
Established in Helsinki in 1909 by four Finnish-speaking physicians—Reguel Löfqvist, Akseli Koskimies, Walter Sipilä, and K. F. Hirvisalo—Mehiläinen originated as a modest private hospital.[1] The name draws inspiration from the legendary bee featured in the national epic Kalevala, symbolizing healing.<ref> Initially, the facility was located on Huvilankatu street.[2]
During the early 1930s, Mehiläinen expanded its operations to Pohjois-Töölö with a new hospital building completed in 1932 at Hesperiankatu 17. Subsequent enlargements in 1933 and 1937 raised its capacity to 128 beds and introduced additional space for apartments and commercial use.[3]
Throughout the Winter War and Continuation War periods, the hospital served as a military medical unit for the Finnish Red Cross (later known as Töölö Hospital). Most activities were temporarily halted following bomb damage sustained in 1944.[4]
In 1957, Mehiläinen initiated group specialist services,[3] and by 1964 had begun leasing beds to the city of Espoo.[4] Occupational healthcare services were launched in 1974,[1] with the company adopting the name Sairaalaosakeyhtiö Mehiläinen in 1978.[4]
The maternity ward was closed down in 1980.[4] Mid-1980s growth included acquiring medical stations in Hakaniemi and Vantaa, notably opening the Forum medical station in 1986.[4]
Between 1994 and 1995, corporate restructuring consolidated various medical stations under a single parent company. At that time, Mehiläinen hospital featured 90 beds, laboratory services, an operating theater, and catered to roughly 130,000 patients annually.[3]
2000-2010
In 2000, CapMan and SITRA became principal owners of Mehiläinen. The following year saw the merger of Mehiläinen Hospital Limited Company with Tohtoritalo—which itself was created in 1996 from Meditori and Vagus medical stations—forming Mehiläinen Oy. In 2002, acquisitions included Remedi from Vaasa and Säveri from Kuopio, followed by nine additional purchases in 2003.
By 2006, CapMan and SITRA divested most of their shares to Swedish investor 3i, integrating Mehiläinen into the Ambea group. The acquisition of Carema Hoivapalvelut Oy—the Finnish branch of Carema under Ambea—occurred in 2007. By 2009, service offerings broadened to include child protection and mental health rehabilitation through Leivoyhtiöt and home care under the Carema brand in Karis.
Ownership transferred again in 2010 to KKR alongside Swedish Triton AB.[5]
2011-
Throughout the 2010s, numerous Finnish municipalities privatized their social and healthcare services by partnering with Mehiläinen among others; however, challenges emerged during service delivery. For instance, Kemi experienced a shortage of contracted physicians; Mehiläinen’s CEO attributed this issue to insufficient facilities and intended to address it by reallocating duties to nursing staff while enhancing digital service offerings.
In November 2014, Mehiläinen declared plans to merge with Mediverkko, appointing founder Janne-Olli Järvenpää as CEO of the merged entity. The acquisition finalized in January 2015 resulted in revenues surpassing €360 million and a workforce exceeding 9,000 employees.
By mid-2017, LähiTapiola acquired a ten-percent ownership stake as Mehiläinen’s revenue grew by over 30%, exceeding €165 million.
In May 2018, ownership shifted when Triton and KKR sold Mehiläinen to LähiTapiola, Varma, Ilmarinen, and CVC Capital Partners. At that time, Mehiläinen employed more than 14,000 people and had completed over 40 acquisitions between 2015 and 2018. The company also developed upwards of 700 new housing units designed for elderly individuals, people with disabilities, and those undergoing mental health rehabilitation; home care services were active across more than 150 municipalities.
In April 2019, OP Financial Group divested Pohjola Terveys' occupational healthcare services—which served nearly 19,000 employees within approximately 800 companies—to Mehiläinen. Later that year in November, plans were announced to acquire Pihlajalinna, pushing revenue beyond €1.064 billion for the first time.
Mehiläinen’s first international expansion occurred in 2020 when its subsidiary BeeHealthy acquired Stockholm-based Sibyllekliniken. BeeHealthy was subsequently spun off as a startup focused on exporting Mehiläinen’s digital health solutions internationally. However, in September that year, the Finnish Competition and Consumer Authority proposed blocking the merger with Pihlajalinna; consequently, by November the deal was called off.
Further expansion took place in 2021 with acquisitions including Estonian workplace healthcare provider Qvalitas along with three dental clinics (Unimed merged with KW and Al Mare). In November of that year, Mehiläinen entered the German market through its purchase of Dalberg Klinik AG.
Organisation
By 2018, Mehiläinen's workforce included more than 5,400 physicians, with approximately 3,300 actively practicing across upwards of 57 medical centres and eleven hospitals throughout Finland. The total number of employees surpassed 18,800.
In the year 2020, revenue from healthcare services amounted to €773.2 million, while social care services contributed €389.3 million. Of this combined income, €596.2 million originated from the public sector, €306.3 million from business clients, and €260.0 million from private individuals. Additionally, Mehiläinen employed around 70 software engineers dedicated to advancing digital service innovations.
On the international front, Mehiläinen operates under the BeeHealthy brand, which had a staff of 50 as of spring 2021.
Ownership
As of autumn 2021, the principal shareholders of Mehiläinen included CVC Capital Partners funds holding 56%, LähiTapiola group with a 20% stake, Varma Mutual Pension Insurance Company also at 20%, alongside the State Retirement Fund of Finland and Ilmarinen insurance company.
Products and services
Mehiläinen’s primary areas of operation encompass private healthcare, public healthcare, and social care services. The company further extends its offerings to include mental health support.
Its digital service platform, OmaMehiläinen, boasts over one million registered users who utilize it for scheduling appointments, renewing prescriptions, and accessing their personal health information.
Digital clinic
In 2020, Mehiläinen’s digital clinic catered to roughly 550,000 patients within Finland. This platform facilitates remote consultations with physicians and is accessible in both Finland and Estonia. It provides a more efficient patient processing experience compared to conventional in-person visits. Finnish insurance companies such as LähiTapiola, Länsi-Pohja, Siikalatva, and Varkaus incorporate Mehiläinen’s digital solutions into their offerings.
BeeHealthy
The BeeHealthy service, licensed by Mehiläinen internationally in countries including Greece and Italy, is based on the OmaMehiläinen platform and digital clinic technology. Healthcare providers use BeeHealthy to manage online appointment bookings, pre-visit form submissions, virtual consultations, coaching sessions, follow-up care, and access to medical records such as laboratory results. The application integrates with mobile health platforms like Apple Health, enabling patients—for instance those managing diabetes—to input personal health metrics for remote monitoring and communication with their healthcare teams.
Tax responsibility
In 2006, Swedish investment firm 3i acquired majority ownership of Mehiläinen and incorporated it into the Ambea group. This transaction involved an internal loan arrangement that allowed tax-efficient interest payments directed to Sweden, thereby circumventing Finnish real estate transfer tax obligations. By 2010, ownership shifted primarily to Swedish Triton AB and American KKR.
Triton’s assertive tax planning strategies based in Jersey attracted criticism in 2011; Mehiläinen was accused of tax avoidance practices linked to intra-group donations. Nevertheless, by 2015 the company declared taxable earnings of €19.2 million and paid €3.8 million in taxes as reported by Helsingin Sanomat.
Following reputational harm stemming from these tax issues, Mehiläinen undertook a corporate restructuring in 2016—severing ties with its Swedish parent company and appointing new leadership. Between 2017 and 2018, Helsinki district court found Mehiläinen guilty of tax evasion relating to activities conducted between 2006 and 2012 under Ambea’s ownership. Although the company contested the ruling on appeal, it proactively settled €13.8 million covering owed taxes and penalties.
A Finnwatch report published in 2019 rated Mehiläinen lowest among six social and healthcare firms for tax responsibility due to its loan arrangements that lowered taxable income alongside ongoing legal disputes. While not engaging in aggressive shareholder loans like some peers, Mehiläinen was historically undercapitalized with financing from fund institutions that reduced its taxable base; however, financial independence improved following a corporate reorganization in 2018. More than half of its physicians operate as external contractors via OmaPartners Oy, which paid €6.05 million in work commitment shares during 2018.
In April 2020, Mehiläinen announced that the Supreme Court refused to hear its appeal, bringing an end to the prolonged legal proceedings.
Challenges in Operations
In 2011, the Swedish healthcare provider Carema, under the ownership of Triton, encountered criticism due to cost-cutting measures implemented in routine healthcare services.
After a patient passed away at an Esperi Care nursing facility in January 2019, Yle reported that Finland's three dominant nursing home operators—Mehiläinen, Esperi Care, and Attendo—were struggling with insufficient staffing levels. The Regional State Administrative Agency found shortcomings in Mehiläinen's facilities, although these were less serious compared to those observed in the other companies.
During the fall of 2021, significant problems surfaced within Mehiläinen nursing homes, notably involving the abuse of an autistic child. This case led to a police inquiry targeting the specific care unit.
References
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