Pride Hospital Ethiopia Overview

PRIDE HOSPITAL PROJECT – CREATING A MEDICAL TOURISM HUB IN ETHIOPIA

1st Advisory Board Meeting May 14, 2012 Addis Ababa

Can Ethiopia Be A Medical Tourism Hub 

Large Volume Medical Tourism Out of Ethiopia Exists   

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Ethiopian Airlines Reach  

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41 Africa and 17 Middle East destinations By 2023 Ethiopian Airlines hopes to attain 11 million international passengers

Growing business community and business class 

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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

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

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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 

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Time frame – 3 months

Pre Feasibility Analysis 

Goals To determine viability  To determine capital demand  To raise capital and financing 

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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 13 th  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     

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Equity Financing     

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Ethiopian Development Bank – 40-60 African Development Bank Private Banks OPIC IFC 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 

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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