pride hospital project – creating a medical tourism hub in ethiopia
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PRIDE HOSPITAL PROJECT – CREATING A MEDICAL TOURISM HUB IN ETHIOPIA. 1 st Advisory Board Meeting May 14, 2012 Addis Ababa. Can Ethiopia Be A Medical Tourism Hub. Large Volume Medical Tourism Out of Ethiopia Exists 600 to 800 pts per month travel to BH monthly - PowerPoint PPT PresentationTRANSCRIPT
PRIDE HOSPITAL PROJECT – CREATING A MEDICAL TOURISM HUB IN ETHIOPIA
1st Advisory Board MeetingMay 14, 2012Addis Ababa
Can Ethiopia Be A Medical Tourism Hub Large Volume Medical Tourism Out of Ethiopia
Exists 600 to 800 pts per month travel to BH monthly Ethiopia is third largest customer to BH 12,000 customers in Ethiopia and 10,000 in neighboring
countries Ethiopian Airlines Reach
41 Africa and 17 Middle East destinations By 2023 Ethiopian Airlines hopes to attain 11 million
international passengers Growing business community and business class
38% of Ethiopian Population is in Middle Class earning 4-20 dollars per day (AfDB 2011)
International/Diplomatic Community Estimated USD 4000 per person insurance payments
You Are
Here
The Feasibility Analysis
To Be Done in Two Phases
ICME – International Consulting Management and Engineering Local partner – local knowledge At risk fee Interdisciplinary team of doctors, economists,
medical technicians, care staff and engineers Several years experience in hospital process
management Projects in the United Arab Emirates and in Europe Relies on adaptation of functional and structuring
processes and less on individual actions to achieve sustainable cost optimization
Recently completed a 688 bed hospital in Abu Dhabi
Pre Feasibility Analysis
Key Questions - TOR Assessment of market demand – by diagnosis
category (cancer, orthopedics, cardiac, trauma etc) Assessment of regulatory policy Target population and health status (mostly done) Current referral system for missing services Price structure and if target population can afford it Investment need Staffing need Key risks
Time frame – 3 months
Pre Feasibility Analysis
Goals To determine viability To determine capital demand To raise capital and financing
Phase II Feasibility Detailed analysis of prefeasibility Design and functionality Information technology factors Organogram and ownership structure Estimating soft costs
Joint Venture Outlooks
Bangkok Hospital Meeting with CEO in New York – May 13th
Management agreement as well as equity partnership
Willing to perform feasibility The Swiss Leading Hospitals – Rak
Hospital Service agreement and referral service
being explored
Areas of Focus
Equity and Debt Financing
Debt Financing Ethiopian Development Bank – 40-60 African Development Bank Private Banks OPIC IFC
Equity Financing Share company – public vs small group Joint Ventures Private equity - ?SGI Partnership with private hospitals IFC, OPIC
Final model to be determined in the future
Role of Government
Incentives Land – out of lease Loan – mezanine Tariffs – importation and business tax
Regulation Feasibility to recommend
changes/adjustments International staff licensing, income
repatriation, medication and equipment import
Staffing and Management
Management Professional management firm – JV or separate
contract Recruiting and training Ethiopian managers
Staffing Return, partial return, or telemedicine participation
of Ethiopian physicians from US, Canada, Europe JV hospital to provide staffing Local physician participation Training of up and coming physicians Strong hospitality training of staff at all levels
Marketing and Public Relations Preparing for public shares? Branding the hospital
Next Steps
Registration of GEDHF in Ethiopia Forming Advisory Board – today Feasibility study to be completed Joint Ventures to be solidified in coming
months Share company to be created Land acquisition
Role of Advisory Board
Networking Advising at all levels Land acquisition Financing - Debt/Equity Expanding the Advisory Board Share company initiation – Founding
Members? Structure
Local coordinators hired Communication among Board crucial – monthly
meeting?, Board coordinator
Discussion