Pihlajalinna

In 2001, in the small Finnish municipality of Parkano, a local health center physician named Mikko Wirén saw a problem. Municipalities were struggling with healthcare expenses and an aging population, so he founded a company to provide physician staffing services to the public sector. This was the start of Pihlajalinna. The company's focus soon expanded beyond just staffing to include specialized medical care and, crucially, outsourcing services. The major turning point came in 2010 when Pihlajalinna won a contract to operate the entire Jämsä district hospital, the first-ever complete outsourcing of a public hospital in Finland. This move established Pihlajalinna's unique model: working with both the public and private sectors. The company grew rapidly through this dual approach, bolstered by over 20 acquisitions, including the significant purchase of private healthcare company Dextra in 2012. By 2015, the company was ready for the next level. Pihlajalinna went public, listing on the main list of the Helsinki Stock Exchange in June. This IPO provided capital for further expansion. The story took another dramatic turn in November 2019 when competitor Mehiläinen announced a recommended cash tender offer to acquire Pihlajalinna. However, the deal faced a lengthy regulatory review and ultimately lapsed in late 2020 after the acceptance period expired before receiving approval. Pihlajalinna continued its journey as an independent public company, a key player built on a hybrid model of serving both public and private healthcare needs across Finland.