Medica Launches as Israel's Newest Private Hospital Network

A significant new player has emerged in Israel's healthcare landscape with the official launch of Medica, a private hospital network consolidating four existing medical centers under a single operational umbrella. The network, which has been quietly assembled over the past decade, represents the largest private healthcare consolidation in Israeli history. In 2024, Medica acquired Raphael Hospital in Tel Aviv for NIS 550 million, a facility originally established by private investors and insurance company Harel. The hospital operates under an existing license and provides nearly all types of surgical services. The consolidation brings together diverse medical capabilities including advanced surgical centers, diagnostic imaging facilities, and specialty clinics. Medica's CEO has highlighted a significant structural issue in Israel's healthcare system, noting that "in recent years, almost no public hospitals have been built in Israel, but a process has taken place that amounts to quiet nationalization of private medicine." The observation points to growing tension between public demand for hospital beds and the limited pace of government hospital construction. Israel currently ranks among the lowest in the OECD for hospital beds per capita, with approximately 1.8 beds per 1,000 people compared to the OECD average of 4.3. The Medica network aims to address part of this gap through efficient private-sector operations, while also expanding medical tourism services that bring in significant foreign revenue.