London-listed NMC in talks to run struggling Saudi hospital
dubai — London-listed NMC Healthcare is in talks with the Riyadh government to take over the running of a struggling Saudi hospital, according to four sources familiar with the matter.
A deal for the Saad Specialist Hospital in Khobar, one of the top cancer treatment facilities in the Gulf, would be a rare instance of a foreign group operating a Saudi hospital.
It would be a test of Riyadh’s plan to bring overseas investors into the healthcare sector under a reform drive, led by Crown Prince Mohammed bin Salman, aimed at restructuring the kingdom’s economy and reducing its dependence on oil revenue.
The Saudi health ministry has asked interested parties to submit bids for the operational licence by the end of this month, said the sources who declined to be named as the discussions are confidential. UAE-based NMC is involved in the process and is considered a frontrunner to win the contract, they added.
The 750-bed hospital is owned by Saad Group, a conglomerate owned by billionaire tycoon Maan Al Sanea which also operated the facility. But in recent weeks the government has stepped in after the hospital become weighed down by financial problems, said the sources.
The hospital had effectively ceased operating — with the
We want to look at opportunities in Saudi Arabia. It is a very strong market and the reforms happening there will give the healthcare sector a lot of momentum Prasanth Manghat, CEO of NMC Healthcare
emergency room the last unit of the facility to close last month — due to debts which meant it was unable to pay salaries or contractors, according to the sources.
NMC Healthcare and the Saudi health ministry were not immediately available to comment.
Saad Specialist is one of only two hospitals in the kingdom to have a cyclotron, used to help identify cancerous tumours. The ministry is keen to get it reopened as quickly as possible. It approached NMC and other healthcare companies a few weeks ago about taking over the running of the facility and conducted a site tour for potential bidders, which number around 10, according to the sources familiar with the matter. The sources did not name any other potential bidders.
NMC Healthcare has $800 million available to start investing in 2018 in the Gulf and other markets, its CEO Prasanth Manghat said this week.
“We want to look at opportunities in Saudi Arabia,” he said. “It is a very strong market and the reforms happening there will give the healthcare sector a lot of momentum.”
The government is looking to bring in foreign investors to the healthcare sector as part of its “Vision 2030” plan. —