"We are waiting for the occupancy permit from the Tallinn City Government. Everything on our end is ready, but we cannot use the premises without the permit. While it's possible to enter and exit the building, we cannot carry out work there," said Rain Laane, CEO of the Health Insurance Fund.

Allan Remmelkoor, the project director for Arter and representative of the owner company Kapitel, told ERR that obtaining the permit is essentially a matter of a few days.

"The building has indeed been particularly complex at various stages, which has made the process longer than usual. But truly, as of now, we are in the final stretch," Remmelkoor stated.

For years, the Health Insurance Fund operated out of the office building at Lastekodu 48, near the bus station. The organization occupied four floors of rented space there. Each employee had their own desk and workstations were located in individual offices. The lease on the Lastekodu tänav property ended in August, and the Health Insurance Fund vacated the premises.

Since work cannot yet take place in the new office, employees have primarily been working remotely from home, according to Laane. When necessary, other offices of the Health Insurance Fund in Tartu, Pärnu or Jõhvi have been used. "There's a really nice large hall in Tartu, so when we've needed it, we've held meetings there," Laane said.

At the same time, Laane emphasized that an office is still necessary.

"We are managing, but this was not the original plan. Working from home has its advantages, but if it goes on too long... The pandemic and those experiments with remote work are still very fresh in our minds. I hope this doesn't last too long," Laane added.

The Arter Quarter is located at the intersection of Liivalaia and Juhkentali streets in central Tallinn. While parts of the complex were opened in November, the development is not yet fully complete. The project, which cost over €160 million, includes a 26-story tower that will house Swedbank. Although the building already bears the bank's logo, Swedbank is expected to move in by fall of next year.

A shorter, nine-story building in the complex will function as a hotel, while the 15-story building will serve as office space. The Health Insurance Fund will occupy the ninth and tenth floors, with a total area of just under 2,000 square meters.

Rain Laane explained that the organization searched for a long time to find a new office and ultimately chose Arter after thorough consideration.

"We didn't go for the cheapest option, nor did we choose the most expensive one. We conducted quite a detailed analysis before making our decision," said Laane.

Laane declined to disclose how much the Health Insurance Fund will pay for the new office, citing a confidentiality agreement. However, he noted that the cost was negotiated down partly because the Health Insurance Fund is considered a very low-risk tenant for the developer. There is little concern about unpaid bills.

Allan Remmelkoor, added that negotiations with the Health Insurance Fund did not require a large deposit, which might have been necessary for other tenants.

According to public information, various rental spaces in the same Arter building are currently being offered for lease at rates ranging from €19 to €22 per square meter per month, excluding VAT.

Remmelkoor stated that while he couldn't provide an exact figure, the Health Insurance Fund pays roughly the same rent as other tenants. "It's in the same ballpark. It is definitely lower than the building's average and does not exceed the rates currently available in other new office buildings," said Remmelkoor.

This suggests that the monthly rent for the Health Insurance Fund could be around €38,000, equating to approximately €456,000 annually, plus VAT. The lease is signed for a maximum of 10 years, with the option to extend for an additional five years after the initial five-year period.

It is possible to rent office space more cheaply elsewhere in Tallinn. For instance, well-maintained properties in Mustamäe are available at around €10 per square meter per month. This could result in savings of several hundred thousand euros annually.

However, Laane argued that looking for cheaper office space wouldn't have been practical for the Health Insurance Fund.

"Firstly, the Health Insurance Fund is already a very efficient organization," said Laane, comparing it to similar agencies in other countries. According to Laane, only 0.9 percent of its €2.4 billion budget is spent on office costs and salaries.

He also noted that the new office is, in fact, a cost-saving project.

The new office is about 40 percent smaller in area compared to the previous space on Lastekodu tänav. Laane estimated that over 10 years, this reduction in size would save €155,000. Part of the savings comes from reduced services, such as no longer needing to outsource management and security services and from lower energy consumption in the new building.

Laane emphasized that a better office in a more attractive location also helps recruit top talent.

"We all want good healthcare services. We all want healthcare funds to be distributed wisely. To protect your health, we recruit from the same talent pool as everyone else," Laane noted.

At the same time, he clarified that the office is not overly luxurious.

"The view of the building from the street is quite different from the view out of the window. The window view is nice, but if you first visit the Swedbank building, then the terrace on our building's 15th floor, and finally our office, you'll see that these views differ significantly," said Laane.

The new office will accommodate about 130 of the Health Insurance Fund's 200 employees. Only specific teams – such as the call center, HR, accounting and leadership – will have private offices. Other employees will use hot-desking in an open-plan workspace where they can choose any available desk.

According to Laane, only half of the employees will have a dedicated desk, while the rest can work at shared tables in conference rooms or lounge areas.

There will also be no obligation for employees to return to the office full-time. "We're not like Bolt, where we demand that people come to the office two or three days a week," said Laane. "In fact, we don't expect everyone to come to the office every day."

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