The Dr Simo Milošević Institute in Igalo has started the current season with improved operating results, with around 670 patients and tourists currently staying in its Phase II facility.
The current demand structure shows an equal division between public healthcare users and market-based guests. Around 50% of visitors are patients referred through Montenegro’s Health Insurance Fund, while the remaining 50% are self-paying guests, tourists and regional users. The Institute’s management has reported that operations are stable and that current performance is stronger than last year, following a period marked by financial pressures, account blockages, liquidity challenges, delayed wage payments and accumulated obligations.
Financial Results Improve After Restructuring Period
The Institute ended the previous year with a reported profit of approximately €6.53 million, compared with around €320,000 in the previous year.
Reported operating revenues reached about €19.9 million, while expenses were controlled more tightly compared with revenue growth. The financial results were affected by restructuring measures, asset sales and liability settlements, but the figures indicate a move away from repeated short-term financial interventions. The latest results show that the Institute has returned to generating a positive operational performance after several years of uncertainty surrounding its financial position.
Investment Programme Targets Facility Modernisation
The restructuring process is entering a phase focused on renovation and infrastructure upgrades. Planned works for the 2026–2028 period include the renovation of Phase II, improvements to accommodation standards, upgrades to therapy facilities and renewal of medical equipment in diagnostic centres. The investment programme is aimed at strengthening the Institute’s ability to attract international rehabilitation contracts and higher-value self-paying guests. Modern accommodation, updated medical technology and improved patient infrastructure are considered essential for further development of the health-tourism model.
Health Tourism Model Extends Beyond Seasonal Demand
The Institute’s operations combine medical rehabilitation, physical medicine, rheumatology, thalassotherapy, wellness services and accommodation, creating a business model that connects healthcare with tourism. Unlike traditional seasonal tourism, rehabilitation services involve longer stays, with patients requiring accommodation, meals, therapy, medical supervision and supporting services throughout treatment cycles. This structure provides additional revenue opportunities through public healthcare agreements, regional self-paying programmes and international rehabilitation partnerships.
Phase I Provides Additional Seasonal Capacity
The older section of the complex, known as Phase I, also has commercial potential. During the summer season, it can be used for accommodation with breakfast services, allowing the Institute to activate additional infrastructure and generate seasonal revenue. The facility remains part of the broader effort to improve the utilisation of existing assets while addressing long-term maintenance and investment requirements.
International and Regional Markets Remain Important
The Institute’s international reputation is linked to decades of cooperation with foreign patients, including its cooperation with Norwegian patients that began in 1976. That relationship contributed to Igalo’s recognition as a rehabilitation centre capable of serving international healthcare programmes.
Regional markets continue to represent an important source of demand, with patients from Serbia, Bosnia and Herzegovina, Croatia, North Macedonia and other former Yugoslav markets maintaining connections with the Institute. Self-paying regional packages, pensioner programmes and post-treatment rehabilitation services represent potential demand outside the peak coastal tourism period.
Igalo’s Role in Montenegro’s Tourism and Healthcare Infrastructure
The Institute is positioned within Montenegro’s wider development of healthcare and tourism infrastructure. The growth of luxury tourism, marina projects, real estate investment and high-category hotels increases demand for medical support services, rehabilitation, diagnostics and wellness facilities.
The Institute also represents an important employment centre in Herceg Novi and the coastal region, supporting doctors, nurses, physiotherapists, therapists, administrative staff, accommodation workers and other operational employees.
Next Phase Requires Long-Term Investment Strategy
Future development depends on moving beyond short-term stabilisation and establishing a sustainable investment framework supported by professional governance, transparent procurement, effective capital allocation and a clear commercial strategy. Further progress will be measured through improvements in occupancy levels, revenue per user, international agreements, medical service quality, patient outcomes and operational efficiency.
The Institute’s development also requires coordination between health authorities, tourism institutions, local government, shareholders and potential investors to integrate Igalo into Montenegro’s wider healthcare and tourism plans.
The current season’s figures, including 670 patients and tourists in Phase II and an equal split between Health Insurance Fund users and market-based guests, indicate continued demand. Improved results compared with last year mark progress in operational stabilisation, while the next stage focuses on converting that recovery into a broader modernisation cycle.
