GHP September 2016

20 | ghp September 2016 Health & Social Care A Dose of Healthy Advice We provide strategic advice on new healthcare concepts, expansion strategies, market and financial feasibility studies, master planning, branding, medical planning, operational performance benchmarking, business plan creation, development and operational cash flows, introduction of debt, equity and expe- rienced operators to projects, appraisals and land, property and business valuations, PropCo / OpCo models and negotiation, management agreements and operative training and leasing and sales to property and asset management. Colliers International is committed to accelerating the success of our healthcare clients by demonstrating a deep understanding of factors which underpin profitable healthcare businesses. Focused solely on healthcare industry, Colliers Healthcare advisors have the expertise and knowledge essential to providing for- ward thinking solutions to any challenging healthcare related operational and/or real estate decision where success is measured in high-quality care delivered in a cost effective way. One word epitomises today’s healthcare marketplace – change. As the delivery of healthcare in the Middle East and around the world continues to evolve, hospital and health system executives are grappling with many challenging new paradigms. Integrating the transition from ‘fee for service’ to ‘fee for quality’ delivery mod- els, new compliance requirements, driving wellness and prevention, and ensuring better coordination and efficiencies are but a few of the critical initiatives hospital and health system executives face. Trends and industry changes require investors and operators of healthcare facilities to make challenging decisions. Over the years the healthcare systems have improved across the region however the healthcare sector still continues to offer significant opportuni- ties for investors/operators due to number of factors including. • High population growth rate: The MENA region has one of the highest population growth rates in the world, second only to sub-Saharan Africa. The population has increased from around 100 million The Colliers Healthcare Advisory & Valuation Services team is solely focused on healthcare related business (OpCo) and real estate (Prop- Co), from complex medical business related operational advisory to real estate related advisory. Our professional team is attuned to the ever evolving developments in the healthcare industry and dedicated to resolving the increasingly complex business, operational and real estate needs of healthcare investors, owners, operators, landlords, tenants and developers in the MENA region. 1609JC05 Healthcare in the UAE in 1950 to 500 million in 2010. Current projec- tions anticipate the population to further increase to 800 million by 2050, exceeding the population of Europe by 2050. • The young population profile: The majority of the population in most of the MENA region countries falls between Generation X (1965 – 1980), Gen- eration Y (1981 – 2000) and Generation Z (2001 – present); with approximately 33% under the age of 15 and 21% between the ages of 15 and 24 years, As the current population of the region ages there is likely to be a sharp rise in healthcare demand as almost 80% of a person’s healthcare requirements typically occurs after the age of 40 – 50 years. • The Introduction of compulsory health insurance: After compulsory health insurance was introduced in Abu Dhabi, the revenues of most of the private hospitals doubled in subsequent years, more and more countries / cities, including Dubai is also expected to follow the same pattern. • The expatriate factor in the GCC: The presence of a large number of expatriates in the GCC which is approximately 50% of the GCC population, results in demand for private healthcare provider and creates demand for operators from their native countries / region, as well as, demand for interna- tional operators from United Kingdom, USA and Asia. • The establishment of healthcare hubs in the region: The emergence of ‘satellite campuses’ by global players in the region, such as; Dubai Healthcare City in the UAE, Hamad Medical City Doha and number of other planned medical cities where established players such as Mediclinic from South Africa, Imperial College London Diabetes Centre from UK, Great Ormond Street Hospital for Children from UK, Weill Cornell Medical College in Qatar, to name a few. • High returns on healthcare sector investments: Similar to education, efficient private hospitals can make around 15% to 20% net profit margins once a hospital is stabilised, thus encouraging both investors and operators to invest in healthcare sector in the MENA region. • Heavy reliance on imported medicine and medical