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

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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