Saudi German Hospitals to manage medical city in Egypt

Middle East Healthcare Co. (MEAHCO), the operator of the Saudi German Hospitals (SGH), has approved a ten-year management supervision agreement for Batterjee Medical City in Alexandria, Egypt.

Accordingly, the city will be operated under the SGH brand, MEAHCO said in a statement to Tadawul on Wednesday.

The project will be launched on Sept. 30 and the new city is expected to start operations by the end of 2019.

The healthcare services provider added that it expects the project to generate revenue by 2020 with the related financial impact to be announced in due course.

SGH provides management services for the hospitals owned by Bait Al Batterjee Medical Co. outside the kingdom and gets 10 percent of net profit before taxes and Zakat.

The Batterjee City comprises four phases with the first one being a general hospital and a staff accommodation at an estimated cost of EGP 1.5 billion (SAR 633 million) and EGP 110 million, respectively.

Phase two includes seven specialty hospitals which will likely cost between EGP 5 billion and EGP 6 billion along with EGP 20 million for staff accommodations for each hospital.

The third phase consists of a medical center with 220 clinics at an estimated cost of EGP 200 million.

Finally, a medical college will be established under phase four at an estimated cost of EGP 700 million, the statement added.

The medical city will provide tertiary healthcare services for residents in northern Egypt and Libya.