Presentation by Ralph Foster II, AHMC's Vice President of Business Development, was given at the Med 2020 Forum in Muscat, Oman on October 27th. Mr. Foster's presentation gives an overview of Opportunities in Private Healthcare in the GCC Region.

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 CHARACTERISTICSAward winning state-of-the-art hospital design.

4. AHMC HOSPITAL CHARACTERISTICSIntegration of modern technology.

5. AHMC HOSPITAL CHARACTERISTICSCommitment to quality, safety and patient satisfaction.

6. 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

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 MoHhas 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. 11/6/2014 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. 11/6/2014 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 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-Time
AHMC 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. 11/6/2014 FAMILY HOSPITAL GROUP 23
ALIGNMENT OF INCENTIVES
Owners / Investors
Physicians
Employees
Payors
Other Hospitals
Community

24. 11/6/2014 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. 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

26. 11/6/2014 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