“Opportunities in Private Healthcare in the GCC”
Presented by: Ralph Foster II
AHMC is a private US company headquartered in Washington D.C. focused on the development and management of world-class hospitals that operate according to US management fundamentals and quality standards (JCI).
AHMC’s 16 year track record includes successful collaboration in more than 50 hospital projects, on 5 continents and 24 countries around the world.
AHMC’s model is adapted to the varied environments in which we operate and according to the expectations of the clients we serve in order to deliver enhanced operational capabilities, quality, and profitability.
AHMC’s mission is to provide expertise on a local level and through knowledge transfer develop quality medical services that are accessible to the communities we serve.
AHMC PROFILE
AHMC HOSPITAL CHARACTERISTICSAward winning state-of-the-art hospital design.
AHMC HOSPITAL CHARACTERISTICSIntegration of modern technology.
AHMC HOSPITAL CHARACTERISTICSCommitment to quality, safety and patient satisfaction.
11/6/2014 FAMILY HOSPITAL GROUP 6
KEYS TO SUCCESS
Assess market demographics
Analyze epidemiological data and trends
Is there demand in the market for services and will prices be sustainable…No profit no mission.
Service selection – Can’t be all things to all people: Ok to be Wal-Mart and ok to be Macys but you can’t be both
What are potential sources of patient referrals
Define strategy and vision of investors/owns
Develop the business plan and objectives of the hospital
Differentiation and positioning effectively
POPULATION TRENDS
GCC has fastest growing population:
2020: Population increase by 33%
• Majority under 25
• Advances in medicine leading to increase in life expectancy
GCC HEALTH TRENDS
Affluence and sedentary lifestyle leading to:
– Obesity
– Diabetes
– Heart Disease
– Cancer
http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/chapters/2_1.pdf
DEMAND FOR HEALTHCARE
A 2005 study estimated that by 2025 demand for healthcare services would increase on average by 240% in GCC– Cardiovascular disease: 419%
– Diabetes-related: 323%
– Cancer: 275%
http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/chapters/2_1.pdf
BED NEED
162,000 Beds by 2025 in GCC– Saudi Arabia and UAE will have largest increase in
demand
Saudi MoH has projected that it will need to double the number of existing beds to 66,000 in the next 5 years to keep pace with needs
http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/chapters/2_1.pdf
NEED FOR SPECIALIZED CARE
Cardiac
Oncology
Surgical Hospitals
Orthopedics
Women and Childrens’ Hospitals
Acute Care and Rehabilitation
CHARACTERISTICS OF HEALTHCARE
Hospitals are a complex business
Healthcare is a dynamic industry
Healthcare is local
Reimbursement for services unique
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CONSIDERATIONS
Long-term perspective Dedicated/sustained effort Business of “people” Team sport Reimbursement Scarcity of capital
Human Financial
= Significant ROI possible
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BUSINESS MODELS
Classic:
Public
Public Private Partnerships
Private: Foundation
Family Owned
Doctor Owned
Investor Owned
Alternative:
Hospital within a Hospital
Doctor – Investor Hybrid
Joint Ventures
Collaboration with Insurance Companies
Concession of Services
HOSPITAL DEVELOPMENT
PHASE 1-FS/BP DevelopmentTIMEFRAME: 2 – 3 MONTHS
Conduct Feasibility Study
Develop Business Plan
Develop the Financial Projections
Analysis of the site and architectural design
Preliminary staffing plan
Market analysis
PHASE 2- PROJECT MANAGEMENT CONSULTINGTIMEFRAME: 18-24 MONTHS Work with architect and
construction manager Operating procedures
development Equipment planning HIT Selection and
implementation Development of bylaws for
the board and medical staff Establish governance
structure
PHASE 3- PRE-OPERATIONS & COMMISSIONINGTIMEFRAME: 6 - 9 MONTHS Staffing core operating team General staffing and
recruitment Physician recruitment Implement operating
policies and procedures Implement process design
and protocol Equipment procurement
and installation Establish financial controls
and measures Hospital commissioning
PHASE 4- OPERATIONSTIMEFRAME: 10-15 YEARS Turnkey executive
management and control of daily business operations
Implement international mode of clinical procedures and medical care
Implement quality improvement and patient safety framework
Implement AHMC best practice financial and operations management
Recruitment, training and retention of physicians, nurses and hospital staff
Selection/implementation of HIT System
AHMC Onsite Full-TimeAHMC Consulting and Support
GAP ANALYISIS
Governance
Medical Staff
Human Resources
Financial
Operations
Quality Management
GOVERNANCE
Governance
Structure
Effectiveness
Strategic Planning
MEDICAL STAFF
Organizational Factor
Leadership
By Laws
Staffing Levels
Productivity
Clinical Credentialing
Alignment
HUMAN RESOURCES
Skills
Productivity and staffing levels
Performance indicators
Salaries & Benefits
Continuous education
Alignment
FINANCIAL MANAGEMENT
Financial Statement Review
Balance Sheet Review
Capital Structure Analysis
Ratio Analysis & Key Performance Indicators
Revenue Cycle
Supply Chain
Equipment Sources and Financing
Information Management
OPERATIONS
Management Effectiveness
Benchmarking
Policy and Procedures
Out Sourced Services
QUALITY
Outcomes and performance indicators
Regulatory compliance
Accreditation readiness
Quality management program- continuous measured improvement
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ALIGNMENT OF INCENTIVES
Owners / Investors
Physicians
Employees
Payors
Other Hospitals
Community
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SERVICE EXCELLENCE
Patient Satisfaction
Quality of care and service: Meeting patients and families’
expectations
Enhancing the patient’s experience
Instilling a culture of service
Differentiation and positioning
11/6/2014 FAMILY HOSPITAL GROUP 25
CHARACTERISTICS OF SUCCESS Clearly identified and sustainable local market
Socio-economic levels of patients and related expectations
Aligned, well-trained and multi-specialty medical staffs
Operated to International Standards (ISO9000/HQS/JCAHO)
Emphasis on “value” technology as a clinical and business tool
Clinical benchmarking and measuring of outcomes
Understand the relationship and implications between clinical care and financial performance
Productivity and flexibility
Appropriate and sufficient capitalization – with reality based financing
Accountability, transparency and long-term relationships
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SUMMARY Significant new opportunities exist
Know who you are and know your market
Align incentives with owners/investors, stakeholders, medical staff, employees and payors
Focus on developing a culture of service excellence to enhance patient experience
Staff retention and development
Maintain the optimal mix of technology and financial resources
Nurture an environment that is focused on quality and continuous improvement
Differentiation and effective positioning
Thank you
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