International markets open for the Hygga Flow operating model after the coronavirus pandemic
The long period of coronavirus restrictions has delayed the establishment of new customer relationships in the software business. The easing of the COVID-19 pandemic in the fall of 2022 has opened up the software business markets. Two new clinics in Sweden and one in the Netherlands began using the Hygga Flow operating model in the fall. Next year, the operating model will be deployed at two additional clinics in Sweden.
The pilot of the Hygga Flow model in the municipality of Lindesberg in Örebro County, Sweden, was successful, and the collaboration was expanded to cover new clinics in the fall of 2022. The Hygga Flow operating model managed to eliminate the waits for oral health care almost entirely. Before the model, customers were at times forced to wait for appointments for more than two years. Other benefits gained by Lindesberg included not needing to cancel appointments due to the absences of clinical workers, as patients could now be assigned to other professionals very easily.
In Finland, the coordination of the wellbeing services counties delayed the establishment of new customer relationships. The cooperation with the City of Porvoo will continue in basic health care, and the operations will be expanded to the Wellbeing Services County of East Uusimaa. The Wellbeing Services County of Ostrobothnia also kicked off an oral health care pilot project in the autumn.
The clinic business is recovering
As regards the clinic business, the development of net sales and profitability in 2022 was encumbered by resource challenges related to the outsourcing services agreed with the City of Helsinki, the majority of which resulted from the extraordinarily high number of absences due to the coronavirus pandemic. In addition to this, the profitability of the outsourcing business has been weakened by the increased costs. Fortunately, the impact has been successfully transferred to prices starting from the end of 2022, as a result of the contractual price adjustment. Otherwise, the company’s clinic business saw positive development and grew substantially compared to the previous financial period. Over the course of the period, the operations recovered close to pre-COVID levels and the development has continued on an upward trend. In addition to this, efforts were made in the latter half of 2022 to increase Hygga’s visibility in Finland and the international markets through participation in significant events in the field.
Panostaja supports growth and responsibility
The dialogue with Panostaja remained excellent during the past financial period. For example, the Management Forum organized in the fall, the active board work and support for the operations management have been valuable forms of cooperation. Panostaja has strongly supported the expansion of Hygga’s software business. This year, special attention has also been paid to responsibility with regard to the staff and the environment. The Hygga Flow operating model reduces travel needs among patients and the use of disposable materials. In Örebro County, Sweden, the municipality of Lindesberg won an environmental award, in large part thanks to Hygga Flow.
The coming year is very promising
The year 2023 looks extremely good for Hygga, and the growth of the software business is supported by the new customer relationships gained at the end of 2022 as well as those acquired through existing contracts. Multiple new projects are about to begin, as the Hygga Flow model will be deployed at the AZ Delta hospital in Belgium for specialized medical care and new oral health care agreements are being forged in the Netherlands. In Finland, the opening of the wellbeing services counties will provide new opportunities. The growth of the clinic business is expected to continue in the year following the economic downturn.