United Arab Emirates-based NMC Health has received all regulatory approvals for a new long-term care facility in Jeddah, it said in a statement on Monday.
The 220-bed facility, Chronic Care Specialty Medical Center (CCSMC), will be one of the first greenfield medical facilities established by a foreign company in Saudi Arabia.
A phased ramp-up is being planned, and the hospital is projected to be at full capacity by H1 2019.
“With a total licensed capacity now at about 700 beds, we see the Kingdom as an important part of NMC's growth strategy and will continue to identify areas in which we can fill gaps in the country's healthcare offerings," NMC CEO Prasanth Manghat said in the statement.
In line with its Saudi growth strategy outlined last year, the healthcare provider plans to offer specialized services like long-term care in larger tier-1 cities; target assets in tier-2 cities that lack adequate medical services; and participate in the country’s ongoing privatization process, including any operation and management opportunities that become available.
NMC has reached agreements to acquire a multi-specialty hospital in Najran and Hail for a total of $40 million.
In Najran, the company will acquire a 60 percent stake in a new hospital that initiated outpatient operations in late 2016 and commenced inpatient services in Q1 2017. The hospital includes 100 beds with adjacent land for future growth.
In Hail, NMC will fully acquire a multi-specialty hospital that began outpatient operations in 1991. The hospital has 60 beds, but plans are under way to utilize existing land to increase capacity to greater than 100 beds.
Acquisition is expected to close later this year, the company said.
The Abu Dhabi-headquartered firm also plans to establish a greenfield multi-specialty facility in Al Khobar that houses 170 beds, after the operational success of the recently acquired As Salama Hospital, the statement added. The facility is expected to be operational in H1 2019.
The company expects the Chronic Care Specialty Medical Center, along with the acquisition of two existing facilities and the planned greenfield project, to positively impact EBITDA from 2018 onwards.
Both acquisitions, as well as the greenfield project in Khobar, will be funded through a combination of internal resources and available debt facilities.
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