September 28, 2020

The owners of private HM hospitals create an instrument in Luxembourg in the middle of a pandemic

The Abarca Cidón family, main shareholders of HM Hospitales, one of the largest private healthcare groups in Spain, has just created an instrumental company in Luxembourg in which they participate through several of its equity firms.

This is LuxATM Investments S.à rl, which has started in the middle of the coronavirus pandemic. With 300,000 euros of capital, it began operating on July 16. Its main administrator is Alejandro Abarca Cidón, who in the Organization chart de HM is listed as CEO of the group chaired by his brother, Juan Abarca.

A spokesman for HM Hospitales declined to specify the objective of this new company, since “it has nothing to do with HM” and “belongs to the personal sphere of the Abarca Cidón family.”

Its purpose, according to the documentation available in the Luxembourg Registry, is very broad: from “maintaining holdings in subsidiaries and supporting them by providing administrative services (legal, accounting, services) or related to the activities of those subsidiaries” to “managing, develop and dispose of a portfolio of securities and patents of any origin, participate in the creation, development and control of any company ”, as well as guarantee or receive loans from related companies.

Likewise, “the company’s business purpose is to carry out all kinds of operations as a real estate agent and developer, as well as property manager and property management activities.”

An area in which HM Hospitales has been active in recent months. In January, it sold two of its centers in Madrid (Torrelodones and Sanchinarro) to the US REIT (equivalent to a Socimi) Medical Property Trust for around 250 million to remain as a tenant.


This is not the first company that the Abarca have created in Luxembourg in recent years. At the end of 2015, they formed Cadab Ventures, also with Alejandro Abarca as administrator and another of the family’s assets, Cidaba SL. The latter is dedicated to the rental of real estate and its sole administrator is the patriarch of the clan and co-founder, the surgeon and businessman Juan Abarca Campal, 75 years old.

The creation of this type of structure usually has a fiscal purpose: to be able to deduct in Spain the expenses of loans granted to firms in Luxembourg taking advantage of the very low taxation of that territory, says a prosecutor who requests anonymity. In the case of Cidaba, in its latest accounts (2019), it explains that in September 2019 it granted a “non-resident” related entity a loan, the interest of which does not detail, for a maximum amount of 4.5 million of which “at At the end of the year, 3,901,122.75 euros have already been delivered “.

In the case of the new Luxembourg firm, four Spanish companies linked to the family participate in it. Some are or have been shareholders of the parent company of HM, Profesionales de la Medicina y de la Empresa SL, directly or through third parties such as Cidotama SL or Carpe Fatum Proyectos SL.

Most of the titles of the new Luxembourg firm (54%) are held by Mater Semper Certa SL (37%) and Telma 2013 SL (17%), whose sole administrator is the matriarch, Carmen Cidón Tamargo, 74 years old. The remaining 46% is divided equally between Consultations and Analysis 2AC Gestión de Servicios SL (managed by the vice president of HM, Elena Abarca Cidón) and ALAC 2013 SL (Alejandro Abarca Cidón).

With more than 414 million euros of income in 2018 (latest data available), about 4,700 employees, thirteen hospitals, two maternal and child hospitals, 21 polyclinics and three highly specialized monographic centers, according to its latest accounts presented, HM Hospitales was founded in 1989 and has become a significant player in the private healthcare business thanks to organic growth and an aggressive acquisitions policy.

Its president, Juan Abarca Cidón, brought the sector’s voice to Congress in June in the Reconstruction Commission as president of the Foundation of the Institute for the Development and Integration of Health (IDIS), the private health lobby. The businessman and doctor defended the benefits of private healthcare and urged to “definitively normalize it” because “public healthcare provision is not enough to absorb the population’s healthcare demand. And now, we don’t even talk about the social health care ”. “The less people have wanted to know about the private sector, the better this has done and the worse the public sector has done,” he said.

Abarca defended that this activity, without trying to replace public health, is complementary because it “frees resources” from it: “In the private health system, without counting on the activity that takes place in the public-private collaboration models, it is carried out 23% of hospital discharges, 30% of surgical interventions or 25% of total emergencies in our country. There are more than 450 hospitals in our country and more than 51,000 hospital beds, and proof of its relevance is the role it has played in this health crisis, treating more than 20% of the hospital admissions due to COVID and 15% of the ICU admissions “.

Schools concerted

The Abarca Cidón also have investments in brick and hotels and strong interests in concerted education through the Educare group, one of the most powerful in the Community of Madrid, with six of its eight schools built on public land. Before the pandemic, they have also tested the business of residences for the elderly: last year they inaugurated in Leganés (Madrid) their first residence under the Valdeluz brand, in association with the construction company Arpada.

The HM group, which at the beginning of the health emergency asked part of his staff to take vacations, as published by, it has an important presence in Galicia and Madrid, where it manages its seven hospitals through the company HM Hospitales 1989. It sits on its board of directors, in addition to the Abarca family, one of the partners founders of this firm, Manuel Delgado Solís, former director of ACS (resigned last november after being splashed in the Villarejo case). Delgado came to be charged in the Gürtel case together with the historic secretary of the board of HM, José Antonio López Rubal. Both were lawyers for Francisco Correa, head of that corrupt plot of the PP.


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