Opportunities in Private Healthcare in the GCC Presented by: Ralph Foster II

Transcription

1 Opportunities in Private Healthcare in the GCC Presented by: Ralph Foster II

2 AHMC PROFILE 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.

3 AHMC HOSPITAL CHARACTERISTICS Award winning state-of-the-art hospital design.

4 AHMC HOSPITAL CHARACTERISTICS Integration of modern technology.

5 AHMC HOSPITAL CHARACTERISTICS Commitment to quality, safety and patient satisfaction.

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 11/6/2014 FAMILY HOSPITAL GROUP 6

7 POPULATION TRENDS GCC has fastest growing population: 2020: Population increase by 33% Majority under 25 Advances in medicine leading to increase in life expectancy

8 GCC HEALTH TRENDS Affluence and sedentary lifestyle leading to: Obesity Diabetes Heart Disease Cancer

9 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%

10 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

11 NEED FOR SPECIALIZED CARE Cardiac Oncology Surgical Hospitals Orthopedics Women and Childrens Hospitals Acute Care and Rehabilitation

12 CHARACTERISTICS OF HEALTHCARE Hospitals are a complex business Healthcare is a dynamic industry Healthcare is local Reimbursement for services unique

13 CONSIDERATIONS Long-term perspective Dedicated/sustained effort Business of people Team sport Reimbursement Scarcity of capital Human Financial = Significant ROI possible 11/6/2014 FAMILY HOSPITAL GROUP 13

14 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 11/6/2014 FAMILY HOSPITAL GROUP 14

15 HOSPITAL DEVELOPMENT PHASE 1-FS/BP Development TIMEFRAME: 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 CONSULTING TIMEFRAME: 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 & COMMISSIONING TIMEFRAME: 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- OPERATIONS TIMEFRAME: 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 Consulting and Support AHMC Onsite Full-Time

16 GAP ANALYISIS Governance Medical Staff Human Resources Financial Operations Quality Management

17 GOVERNANCE Governance Structure Effectiveness Strategic Planning

18 MEDICAL STAFF Organizational Factor Leadership By Laws Staffing Levels Productivity Clinical Credentialing Alignment

19 HUMAN RESOURCES Skills Productivity and staffing levels Performance indicators Salaries & Benefits Continuous education Alignment

20 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

21 OPERATIONS Management Effectiveness Benchmarking Policy and Procedures Out Sourced Services

22 QUALITY Outcomes and performance indicators Regulatory compliance Accreditation readiness Quality management program- continuous measured improvement

23 ALIGNMENT OF INCENTIVES Owners / Investors Physicians Employees Payors Other Hospitals Community 11/6/2014 FAMILY HOSPITAL GROUP 23

24 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 24

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 11/6/2014 FAMILY HOSPITAL GROUP 25

26 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 11/6/2014 FAMILY HOSPITAL GROUP 26

27 Thank you