1. PRIDE HOSPITAL PROJECT – CREATING A MEDICAL TOURISM HUB IN ETHIOPIA 1 st Advisory Board Meeting May 14, 2012 Addis Ababa

2. Can Ethiopia Be A Medical Tourism Hub  Large Volume Medical Tourism Out of Ethiopia Exists  600 to 800 pts per month travel to BH monthly  Ethiopia is third largest customer to BH  12,000 customers in Ethiopia and 10,000 in neighboring countries  Ethiopian Airlines Reach  41 Africa and 17 Middle East destinations  By 2023 Ethiopian Airlines hopes to attain 11 million international passengers  Growing business community and business class  38% of Ethiopian Population is in Middle Class earning 4-20 dollars per day (AfDB 2011)  International/Diplomatic Community  Estimated USD 4000 per person insurance payments

3. You Are Here

4. The Feasibility Analysis  To Be Done in Two Phases  ICME – International Consulting Management and Engineering  Local partner – local knowledge  At risk fee  Interdisciplinary team of doctors, economists, medical technicians, care staff and engineers  Several years experience in hospital process management  Projects in the United Arab Emirates and in Europe  Relies on adaptation of functional and structuring processes and less on individual actions to achieve sustainable cost optimization  Recently completed a 688 bed hospital in Abu Dhabi

5. Pre Feasibility Analysis  Key Questions - TOR  Assessment of market demand – by diagnosis category (cancer, orthopedics, cardiac, trauma etc)  Assessment of regulatory policy  Target population and health status (mostly done)  Current referral system for missing services  Price structure and if target population can afford it  Investment need  Staffing need  Key risks  Time frame – 3 months

6. Pre Feasibility Analysis  Goals  To determine viability  To determine capital demand  To raise capital and financing  Phase II Feasibility  Detailed analysis of prefeasibility  Design and functionality  Information technology factors  Organogram and ownership structure  Estimating soft costs

7. Joint Venture Outlooks  Bangkok Hospital  Meeting with CEO in New York – May 13 th  Management agreement as well as equity partnership  Willing to perform feasibility  The Swiss Leading Hospitals – Rak Hospital  Service agreement and referral service being explored

8. Areas of Focus Pride Hospital Equity and Debt Financing Staffing and Management Marketing and Public Relations Govt. Regulation and Incentives

9. Equity and Debt Financing  Debt Financing  Ethiopian Development Bank – 40-60  African Development Bank  Private Banks  OPIC  IFC  Equity Financing  Share company – public vs small group  Joint Ventures  Private equity - ?SGI  Partnership with private hospitals  IFC, OPIC  Final model to be determined in the future

10. Role of Government  Incentives  Land – out of lease  Loan – mezanine  Tariffs – importation and business tax  Regulation  Feasibility to recommend changes/adjustments  International staff licensing, income repatriation, medication and equipment import

11. Staffing and Management  Management  Professional management firm – JV or separate contract  Recruiting and training Ethiopian managers  Staffing  Return, partial return, or telemedicine participation of Ethiopian physicians from US, Canada, Europe  JV hospital to provide staffing  Local physician participation  Training of up and coming physicians  Strong hospitality training of staff at all levels

12. Marketing and Public Relations  Preparing for public shares?  Branding the hospital

13. Next Steps  Registration of GEDHF in Ethiopia  Forming Advisory Board – today  Feasibility study to be completed  Joint Ventures to be solidified in coming months  Share company to be created  Land acquisition

14. Role of Advisory Board  Networking  Advising at all levels  Land acquisition  Financing - Debt/Equity  Expanding the Advisory Board  Share company initiation – Founding Members?  Structure  Local coordinators hired  Communication among Board crucial – monthly meeting?, Board coordinator

15. Discussion