NMC receives regulatory approvals for long-term care facility in Jeddah
NMC Health plc, an integrated health care provider operating across the UAE, has announced that it has received all regulatory approvals for its long-term care facility, Chronic Care Specialty Medical Center (CCSMC), in Jeddah. CCSMC is believed to be one of the first greenfield medical facilities in Saudi Arabia to be established by a non-Saudi company.
Prasanth Manghat, CEO of NMC Health, said: “NMC would like to thank the Saudi government for the support it has offered us during the regulatory approval process. As one of the first foreign entrants into the Saudi health care sector, we have learned a great deal over the past year and intend to use this knowledge to better navigate the Saudi regulatory landscape moving forward. 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 health care offerings.”
NMC Health has adopted a three-pronged strategy to pursue its expansion plans in Saudi Arabia through both organic and inorganic growth:
Offering specialized services such as long-term care, home health and fertility in larger tier-1 cities where competition remains high in the multi-specialty segment.
Targeting assets under any of NMC’s verticals in tier-2 cities which lack adequate medical services and continue to receive lesser investment than the larger cities.
Pro-active participation in the privatization process planned by the Saudi government, including any operation and management opportunities that become available.
The 220-bed long-term care facility initiated operations with 50 beds. All beds are fully committed to patients currently residing in short-term acute care hospitals in Jeddah and the surrounding areas and the migration of patients began last week. A phased ramp up is planned and the hospital is projected to be at full capacity by H1 2019.
NMC Health has reached agreements to acquire a multi-specialty hospital in each of the northwestern and southern regions of Saudi Arabia for an aggregate consideration of $40 million. In addition, NMC intends to establish a greenfield multi-specialty facility in Alkhobar after the operational success of the recently acquired As Salama Hospital.