AHMC is a US-based company that focuses on developing and managing world-class hospitals according to US quality standards. It has over 16 years of experience in over 50 hospital projects globally. AHMC's model adapts to local environments while meeting client expectations to enhance operations, quality, and profitability. The GCC region is expected to see significant population growth and increasing demand for healthcare services, especially in areas like cardiology and diabetes. There is also a need for more hospital beds and specialized care facilities. AHMC assists with all aspects of hospital development, from initial planning through long-term operations management.

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

2.  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

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. 12/21/2015 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/owners
 Develop the business plan and objectives of the hospital
 Differentiation and positioning effectively

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
http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/chapters/2_1.pdf

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%
http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/chapters/2_1.pdf

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
http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/chapters/2_1.pdf

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. 12/21/2015 FAMILY HOSPITAL GROUP 13
CONSIDERATIONS
 Long-term perspective
 Dedicated/sustained effort
 Business of “people”
 Team sport
 Reimbursement
 Scarcity of capital
 Human
 Financial
= Significant ROI possible

14. 12/21/2015 FAMILY HOSPITAL GROUP 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

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: 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 &
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: 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

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. 12/21/2015 FAMILY HOSPITAL GROUP 23
ALIGNMENT OF INCENTIVES
 Owners / Investors
 Physicians
 Employees
 Payors
 Other Hospitals
 Community

24. 12/21/2015 FAMILY HOSPITAL GROUP 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

25. 12/21/2015 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 staff
 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

26. 12/21/2015 FAMILY HOSPITAL GROUP 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

27. Thank you