Business Development Plan-I attached the a case scenario, Please read it and provide a summary slide for Business development ( Make Business Development Plan ).
Case scenario
The King Saud University Medical City is pitching the below business case for potential private investors to co-invest in the development of a Bariatric Surgery Center. This Centre will function as a semi-private entity that will accept and cater to patients with either insurance coverage, private payers or sponsored patients by a third party.
The Bariatric Center will be comparable with international standards for Bariatric Surgery that is capable to provide a comprehensive and complete service to these patients, utilizing the professional expertise of the staff within the Medical City of KSU, including the specialized surgical team, the social service experts, the nutrition team, psychological specialists, the physiotherapist and nursing staff who are fully trained and has that vast experience in Obesity management.
The University would like to attract these private investors to start delivering services by Q2 2017. The University’s contribution to this project is a newly built 100 bed-capacity isolated building located at its campus at King Abdulaziz University Hospital which has operative capabilities and a Day Surgery Management capacities. This newly built facility has infrastructure cost and medical staff covered by King Saud University Medical City and has an additional estimated expenditure demands of 250,000,000 SAR that will include some (30%) capital expenditure (CAPEX) and an operational expenditure (OPEX) for the first 3 years, after which, the center is expected to be running positive cash flow. The number of beds expected to be giving a capacity performing around 8,000-9,000 cases per year. The maximum negative value is 145 million expected to break even by the second or third-year maximum and then a positive cash flow of around 40,000,000 SAR per year.
The magnitude of obesity in Saudi Arabia is one of the growing concerns in the Kingdom. The high incidence of obesity is estimated to be around 30% of the 22 million total population. The waiting list for Bariatric surgery in most centers is between 3-4 years. The estimated price tag for the operation of this study is benchmarked with other private centers like Al Habeeb and Kingdom centers in Riyadh. KSU will have an added value of having a full-time expertise manpower and is much better equipped to deal with emergency cases and difficult patients with high co-morbidities and/or high risk.
The expected investment is needed in the 4th quarter of 2016 in order to be operational in 2017. The structure itself is fully completed. There are many competitors in the market, mostly private centers, but with that, there is still a large demand for Bariatric Surgery in the Kingdom. The Ministry of Health in Saudi Arabia has requested this to be a priority in their next phase of development for privatization of services. Investors are expected to own 50% with the amount placed in and shared 50% of the total revenues. The operational manpower is readily available within the capacity of the Medical City and could be expanded rapidly as services are required. There is a potentiality for an increase in size as the service accumulates patients later on.
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