A CONCEPT ON INVESTMENT OPPORTUNITIES IN MSAMBWENI HOSPITAL KWALE COUNTY MINISTRY OF HEALTH A CONCEPT ON INVESTMENT OPPORTUNITIES IN MSAMBWENI HOSPITAL

Kwale County Background Kwale County is unique in its bio-diversity, mining wealth, size, and historical significance for health. Hosts local and international industries Estimated population of 750,000 people Growing population and an increasing need for specialized medical services. Many people lack access to high quality medical care 91 health facilities including 3 major public Msambweni District Hospital as a county referral Kwale County is the site for the extraction of titanium and one of the top five regions in the world with rare earth deposits of Niobium. Base Titanium Kwale International Sugar Company (KISCO) Kenya Calcium, Kenya Bixa Cortec and several quarries

Msambweni District Hospital

Msambweni District Hospital - Overview early 1940s established as a dispensary on 23rd August 1997 officially opened 168 beds on 5 wards 7 consultants General Surgeon Gynecologist Dentist Physician Pediatrician Orthopedic Surgeon (volunteer )

Msambweni District Hospital - Patients 85 % bed occupancy 5 days average length of stay ca. 25,000 patients attended to in filter clinics 1,500 patients/month in Special Clinics 600 admissions/month in the inpatient department

Msambweni District Hospital - View The only hospital in Kenya that has 15 acres of unused beach plot.

Msambweni District Hospital Vision To be an efficient Medical care hospital for a healthy Nation. Mission To promote and participate in the provision of integrated high quality Curative and Rehabilitative services to all Kenyans. Kwale County wants to upgrade Msambweni hospital from Level 4 to a Level 5 hospital.

Concept - Goal Our goal is to identify a group that will be interested in establishing a partnership with the expansion and enhancement of this medical facility. The county is seeking a partner that will be able to provide equity financing, absorb debt and provide a higher level of specialist training to local staff.

Concept - Primary partners As a joint venture, this project will entail that various parties play different roles to ensure the success of this venture. Kwale County Government Msambweni Hospital Investor/Development partner As a joint venture, this project will entail that various parties play different roles to ensure the success of this venture. •Kwale County Government: The county government will assist in facilitating this opportunity by providing full licensing, manpower and contribute towards financing. •Msambweni Hospital: The current administration of the facility will play a key role in facilitating the upgrade to a Level 5 hospital. •Investor/Development partner: The investor will provide capital towards the costs of upgrading the medical facility and will enter a partnership with the county government and the hospital.

Concept - Secondary entities The following companies and entities will be enticed to further facilitate this opportunity: Kwale County Ministry of Industry Trade and Investment: Medical training institution Base Titanium Apollo Hospitals SIGN (Surgical Implant Generation Network) Other potential partners are Kwale International Sugar Company (KISCO), Cortec Mining Kenya Ltd. and Rift Energy. The following companies and entities will be enticed to further facilitate this opportunity: Kwale County ministry of Industry Trade and Investment: Will facilitate introductions between all parties. Medical training institution: will provide medical experts; along with facilitate training for Kenyans. Base Titanium through its Community Development department has already shown interest in cooperation in this development. Apollo Hospitals through MoU with Apollo Hospital free training of Health care workers in their facilities will start soon and specialised surgical camps are in planning. SIGN (Surgical Implant Generation Network) Msambweni is one of the few hospitals in Kenya who are partnering with SIGN who provide free orthopaedic implans for the fixation of long bone fractures. Other potential partners are Kwale International Sugar Company (KISCO), Cortec Mining Kenya Ltd. and Rift Energy.

Concept - Proposed services Proposed services that will be offered at the facility: Cardiology Neurology Orthopaedics and Joint Replacement Oncology/Haematology Intensive/Critical Care Medical and Surgical Gastroenterology Endocrinology Radiology & Imaging Amenity wards

Concept - Proposed services (2) Obstetrics/ Gynaecology Laboratory Services Renal/Dialysis Unit Satellite Center /Blood bank. (The next blood transfusion center is located in Mombasa.) Burns Unit Hospice for terminally ill patients Physiotherapist services New Born Unit

SWOT Analysis Inadequate number of staff Inadequate staff housing Strength Weaknesses Trained nurses and doctors Well established Level 4 hospital Proximity of KMTC Well established existing facilities (2 OR, laboratory, radiology etc.) Very active research laboratory Already established partnerships Very committed and active Hospital Management Board Only hospital in Kenya that has more than 15 acres of unsed beach plot. Inadequate number of staff Inadequate staff housing Hospital needs renovation (roof, window frames, varnish) Ordering system on medical supplies needs improvement No maintenance plan in place Inadequate Laundry Service

Strength Active community Beautiful scenery

SWOT Analysis Opportunities Threats Social benefits for local community Wide range of medical services Partnering with a training institution Healthcare Sector is rapidly growing Budget will be designed to provide capital for expenditure as the facility will be upgraded. Interest of international Companies Seek to identify investors Cost of doing business in Kwale County remains comparatively low Investor friendly Earmarked to host a Vision 2030 Resort City project at Diani Beach Medical institutions are not considered to be profitable within the time frame of most investors While there is a demand for increased medical services, the local population is not entirely financially stable Capital intensive partnering with a training institution, long term network and employment options The Kwale County Public Finance Act 2014 is investor friendly and supports business establishment and expansion Kwale is one of the three counties earmarked to host a Vision 2030 Resort City project at Diani Beach which currently hosts about 25 tourist hotels and several restaurants

Strategy – How to? This project will be successful because these critical engines will drive its performance:   Introduction between the project managers and potential investors. Discussions on requirements and need for upgrades . Regular visits of Investor with project managers Agreement on the level of financial commitment. Training institution will be introduced and provide their potential courses, along with available staff through their network Stakeholders will finalize all commitments and upgrade of the hospital will begin Ministry of ITI facilitates introduction between the project managers and potential investors. During discussions, hospital administration, county health board and developers will discuss the requirements and need for upgrades Investor will visit the project managers and discuss the finer details of the project. Investor and project manager will finalize agreement on the level of financial commitment. Training institution will be introduced and provide their potential courses, along with available staff through their network Stakeholders will finalize all commitments and upgrade of the hospital will begin

Strategy – How to? 1. Introduction 2. Discussions on requirements 3. Regular Visits 4. Agreement 5. Training institution 6. Stakeholders finalize all commitments Ministry of ITI facilitates introduction between the project managers and potential investors. During discussions, hospital administration, county health board and developers will discuss the requirements and need for upgrades Investor will visit the project managers and discuss the finer details of the project. Investor and project manager will finalize agreement on the level of financial commitment. Training institution will be introduced and provide their potential courses, along with available staff through their network Stakeholders will finalize all commitments and upgrade of the hospital will begin

Strategy - Financing The total expected amount for this project is: xxxxxxxxxxxxx – The money will be used for: Buildings and infrastructure Medical Equipment Ambulances Information Technology Marketing Working Capital Refurbishment

Strategy - Projected IRR The projected return on investment for this project is: xxxxxxx% per annum Revenue will be generated from: Inpatient admission Outpatient consultation Pharmaceuticals Lab and Diagnostics fees Surgical fees Income from private amenity ward Income from conferences, meals and accommodation

Strengthen existing structures Include new services Become Level 5 Hospital. Conference Center attached to the hospital and Doctors’ plaza for private consultations Looking Ahead The following slides show several examples of timelines using SmartArt graphics. Include a timeline for the project, clearly marking milestones, important dates, and highlight where the project is now.

Looking Ahead - The Vision As soon as the hospital has achieved its goal of becoming a Level 5 facility, the following opportunities will arise: A Conference Hotel attached to the hospital. A private retirement home for elderly citizens Doctors plaza for consultation services Those facilities will be privately run and managed As soon as the hospital has achieved its goal of becoming a Level 5 facility, the following opportunities will arise: A Conference Hotel attached to the hospital, which could provide: accommodation for medical tourists, specialists who carry out operations and specialised treatment for the patients within Msambweni Hospital Hosting national and international Conferences Doctor’s Plaza, where private patients can be offered specialised treatments. A private retirement home for elderly citizens. These clients will prefer to spend time in a resort environment in a beautiful scenery, with the certainty, that all of their (medical) needs are met. Those facilities will be privately run and managed

Looking Ahead