A R Mohan.pdf - International Hospital Federation
A R Mohan.pdf - International Hospital Federation
A R Mohan.pdf - International Hospital Federation
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
PPP Model in the Healthcare<br />
Industry<br />
SGH Group's Experience<br />
Presented by<br />
A R <strong>Mohan</strong><br />
Saudi German <strong>Hospital</strong>s Group
SGH Group takes this opportunity<br />
to thank<br />
Organizers<br />
for bringing this event to the Middle East and<br />
giving us an opportunity to be associated with it
Conference Theme<br />
“Healthcare in a changing world:<br />
Overcoming the challenges”<br />
PPP is a central element in this theme
Overview<br />
Current Scenario of Healthcare Industry<br />
PPP as a form of sustainable Business Model<br />
PPP- SGH Yemen and SGH Hail Experience
Current Scenario of Healthcare<br />
Fragmented industry<br />
High entry barrier<br />
Long lead times<br />
Few corporate players<br />
Industry<br />
Reluctance of institutional funds to finance<br />
Healthcare<br />
Weak scientific management (in relation to<br />
other industries)
Current Scenario of Healthcare<br />
Industry…contd.<br />
Low level of automation- poor integration.<br />
Lack of research.<br />
Clinical research<br />
Policy research<br />
Process research<br />
Market research………etc.
Current Scenario of Healthcare<br />
Industry<br />
In the past, Healthcare was solely under the<br />
Government Sector<br />
Government <strong>Hospital</strong>s are inadequate to<br />
meet the needs<br />
More recently Governments in Arab world<br />
encourage increasing private sector role.<br />
Emergence of professionally managed Private<br />
<strong>Hospital</strong>s.
Current Scenario of Healthcare<br />
Rising healthcare costs<br />
Obligatory Medical Insurance<br />
Industry<br />
Strategic development of healthcare hubs<br />
Shortage of healthcare professionals<br />
Increase in life styles diseases e.g. obesity,<br />
diabetes, heart diseases, back pain…..etc.
Healthcare Projects<br />
240% Increase in Treatment Demand in<br />
GCC by 2025<br />
Healthcare provision in GCC will be about<br />
US$60 Billion, 5 Folds from today<br />
(Source: McKinsey)<br />
PPP Model in Healthcare also can do wonders in rich<br />
and poor nations alike
Healthcare<br />
No stakeholder is happy<br />
with the situation or outlook.<br />
There are no perfect models
Healthcare<br />
Capital intensive<br />
Labour intensive<br />
Materials Intensive
Challenges are enormous<br />
Public sector has limitations<br />
Private sector can not do it alone<br />
PPP is part of the solution to provide<br />
the thrust and direction that the<br />
industry requires
PPP can provide Sustainable<br />
Business Model<br />
The PPP can be a sustainable business model in –<br />
<br />
<br />
<br />
Healthcare<br />
Health education<br />
Health research.
PPP Relationship must be<br />
Organic<br />
Based on Shared Vision, Values, Goals and<br />
Strategy<br />
Driven by long term goals<br />
Synergy among the partners
PPP Relationship must be<br />
Respective strengths of partners to<br />
complement and supplement each other<br />
Win-Win for all stakeholders<br />
Economically sustainable<br />
Fully leveraging the strengths of the<br />
partners
PPP Relationship should go<br />
Collaboration on specific projects<br />
Private sector role as a mere provider of<br />
service<br />
beyond<br />
Segmental focus, poor interface and<br />
integration- partnership on non core areas<br />
(clinical care the responsibility of the public<br />
sector and support services the role of<br />
private sector)
Private Sector Strengths<br />
Domain knowledge<br />
Market knowledge<br />
Business acumen<br />
Result orientation<br />
Agile Management<br />
Customer focus<br />
Brand
PPP success factors<br />
Private Sector partner with high level of<br />
corporate governance<br />
Clear and effective governance structure of<br />
the PPP entity<br />
Provide Exit strategy options
SGH Group’s experience of PPP<br />
Many governments / agencies from the region<br />
approached us to start hospitals<br />
-As partners<br />
-Manage their ailing hospitals<br />
-Promote Healthcare Industry with the<br />
support of local and international investors.
PPP- SGH Yemen success story<br />
SGH Yemen Project ( 300 beds) A world class<br />
General <strong>Hospital</strong> is classical example of Public<br />
Private Partnership in Healthcare Industry of Arab<br />
World.
Cont…PPP- SGH Yemen success<br />
story<br />
SGH-Yemen
Cont…PPP- SGH Yemen success<br />
story<br />
35% stake of the Yemen Government through its<br />
various agencies<br />
Yemenia Airways: 15%<br />
Ministry of Interior-Pension Fund-Yemen 10%<br />
The General Authority Social Security-Yemen: 10%<br />
(SGH Group has 54% and Global<br />
Investment House has 11% stakes)
Cont…PPP- SGH Yemen success<br />
story
Cont…PPP- SGH Yemen success<br />
story<br />
SGH Yemen, setting standards- first JCI<br />
accredited hospital in Yemen.<br />
We never thought that SGH-Yemen will do<br />
better than some of our hospitals in KSA.
SGH Hail an unique business<br />
With the support of Saudi Government, and Hail<br />
governorate, SGH Group is creating a Role Model<br />
<strong>Hospital</strong> for small and remote regions of KSA<br />
With this successful model SGH Group will reach<br />
different untouched and remote ( by Private Sector)<br />
areas of KSA and other countries subsequently<br />
model<br />
We have more than 50 local Partners in addition to the<br />
Hail development authority, and the institutions like<br />
Prince Sultan Foundation, Islamic Development Bank etc
Cont..SGH Hail an unique<br />
business model<br />
PPP initiatives materialized from SGH Group’s Vision<br />
and Commitment to contribute positively to the<br />
Community.
Cont..SGH Hail an unique<br />
business model<br />
HE Crown Prince Sultan<br />
and HRH the Governor<br />
of Hail Region-<br />
Supports of SGH Hail-<br />
150 Beds <strong>Hospital</strong>.
Cont..SGH Hail an unique<br />
business model<br />
SGH Hail 150 beds <strong>Hospital</strong>-<br />
Construction work fast progressing
Other Governments support to<br />
SGH Group
SGH-Dubai
SGH-Dubai
Final thoughts<br />
ommon platforms for public private interaction<br />
ovide incentives to the private sector<br />
reate PPP role models<br />
vestor friendly environment<br />
ficient legal framework<br />
tablish a committee at the city, country, and<br />
gion level for Private and Public Sector<br />
logue and interaction.
SGH Group Endeavor:<br />
To play a responsible role<br />
in shaping the Healthcare Industry in the<br />
region<br />
Thank You