Clalit Health Fund Acquires Additional 10% Stake in Herzliya Medical Center

Clalit Health Services will purchase an additional 10% of Herzliya Medical Center's shares from Yair Landau, exercising its right of first refusal. This move comes after Landau had agreed to sell the same stake to founders of the Waze navigation app, led by Asaf Rappaport, for NIS 120 million, valuing the medical center at NIS 1.2 billion.

The Ministry of Health's policy, which encourages health funds to control private hospitals, influenced Clalit's decision. Health Ministry Director-General Moshe Bar Siman Tov had previously blocked a deal for Yitzhak Tshuva to acquire 25% of the hospital's shares, which had already been agreed upon, citing this policy.

Following the Ministry of Health's intervention, Rappaport and his partners began negotiations with Landau. Clalit met with Ministry of Health officials last week to discuss the financing for exercising its right of first refusal, after which it notified Landau of its decision. Landau currently holds 50% of the shares, Clalit 40%, and Clal Insurance 10%. After the transaction, Clalit will hold 50%, Landau 40%, and Clal Insurance will retain 10%.

Previously, in January, Tshuva had agreed to buy 25% of Herzliya Medical Center for NIS 1.1 billion. That deal, which involved Clal Insurance selling part of its stake, would have given Tshuva and Landau a combined 54% ownership. However, the Ministry of Health signaled to Clalit that it expected the health fund to take control of the hospital, aiming to ensure public medicine benefits and influence the hospital's board.

Herzliya Medical Center, established in 1982, performs around 26,000 surgeries annually in specialties including cardiac surgery, neurosurgery, and oncological surgery. It also houses catheterization and IVF units, making it one of Israel's largest private medical institutions. Landau will retain ownership of the hospital's real estate.