Public Private Partnership (PPP) Meeting rising healthcare demand through innovative Public Private Partnership (PPP) SGH Group’s Experience Sobhi A Batterjee Group President Chairman Middle East Healthcare Company (MEAHCO) Saudi German Hospitals Group

Current Scenario In the past, Healthcare was solely under the Government Sector. More recently Governments in Arab world have allowed and encouraging private sector role Government Hospitals not adequate to meet the needs. Rising healthcare costs. Implementation of mandatory Medical Insurance. Fragmented industry Lack of research

Government to focus on primary care. Government & Private collaboration Government to focus on primary care. Private sector to address secondary and tertiary sectors. Public- Private Partnership. Investor friendly climate and conducive legal/taxation structure to be created by governments.

Doubling of GCC population. Healthcare in the Region – In future By 2025 there will be substantial increase in demand with regard to Treatment, Hospitals beds and Cost in GCC by around 240% Doubling of GCC population. Healthcare provision in GCC will be about US$60 Billion, folds from today. (Source: McKinsey) (PPP Model in Healthcare also can do wonders in poor nations and remote areas of even rich nation like KSA)

The PPP can provide a sustainable business model in: Healthcare PPP can provide sustainable business model The PPP can provide a sustainable business model in: Healthcare Health education Health research

SGH Group is first to initiate PPP in Healthcare Industry of the region Many governments have approached us to start hospitals in their nations As partners Manage their ailing hospitals Promote Healthcare Industry with the support of local and international investors.

PPP – SGH Yemen success story SGH Yemen Project ( 300 beds) A world class General Hospital is a classical example of Public Private Partnership in Healthcare Industry of Arab World.

PPP – SGH Yemen success story Yemen Government and its undertakings has over 35% Equity Investment in this Project through following institutions. Yemen Airways Ministry of Interior-Pension Fund-Yemen The General Authority Social Security-Yemen

PPP – SGH Yemen success story… SGH-Yemen 300 beds Hospital was inaugurated by the on 11th June 2006

SGH Hail – An unique business model With the support of Hail Local and Saudi Government, SGH Group is creating a Role Model Hospital for small and remote regions of KSA. With this successful model SGH Group will reach different untouched and remote ( by Private Sector) areas of KSA and other countries subsequently.

We thank Saudi Government for their trust in SGH Group. SGH Hail – An unique business model We have more local Partners with the support of HRH the Governor of Hail Region and we have received required Land for the Project from Government of KSA. We thank Saudi Government for their trust in SGH Group. We have received soft loans from Ministry of Finance of KSA for our Hospitals at Jeddah, Aseer, Riyadh, Madina, Hail and Batterjee Medical college-Jeddah

SGH Hail – An unique business model …. Contd. PPP initiatives have materialized from SGH Group’s Vision and Commitment to contribute positively to the Community.

SGH Hail – An unique business model …. Contd. HE Crown Prince Sultan and HRH the Governor of Hail Region- Supports of SGH Hail-150 Beds Hospital.

SGH Hail 150 beds Hospital- scheduled open in Q4 2016 SGH Hail – An unique business model …. Contd. SGH Hail 150 beds Hospital- scheduled open in Q4 2016

SGH Hail – An unique business model …. Contd.

Road Ahead Encouragement of public private partnership (PPP), mainly for poor nations and remote areas . Role of Government to change from Provider of Healthcare to Partner in the Healthcare Initiatives and enterprises. Governments to support Private Sector by providing free land, long term loans, subsidized utilities for the Industry.

Road Ahead Long Term Strategy for regional healthcare Investment. Governments should reduce bureaucracy, licensing processes and simplify registrations. A Committee at the regional level for Private and Public Sector dialogue.

Thank You