sea-uhg-businessplan ppt v2 (turkey)

8/6/2019 SEA-UHG-BusinessPlan PPT v2 (Turkey)

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South-Eastern Anatolia UHG

Business Plan Highlights

Preliminary and Draft Copy

for Discussion Purposes Only


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Background Universal Hospitals Group is the largest private healthcare provider in Turkey which

currently has 8,500 employees, 1,300 physicians and 58 healthcare facilities.

Foundations of the group were laid back in 1972.

The group started its operations in 1972 when Dr. Azmi Ofluoglu has opened the mostmodern out-patient clinic of that 70s in Turkey.

The group consistently grew over the decades and became a healthcare giant providing

world-class healthcare services, mostly in western Turkey.

UHG wants to expand its business into South, East and South-Eastern Turkey by

building new hospitals in the region.

This is to be achieved by establishing business relationships with local landlords in theregion where possible.

UHG has established a wholly owned subsidiary to plan, execute and control

operations and building its headquarters in Adana.


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UHGs Mission and Vision UHGs mission is to maintain its reference hospital status in the Turkish Healthcare

industry by using modern knowledge and latest technology within the framework of

internationally accepted healthcare standards and business ethics. UHG respects

patient rights and recognizes its social responsibilities and aware the importance of

patient and family satisfaction.

UHGs vision is to become a global healthcare provider by providing services in other

parts of the world where there is need; as it is proud of building a model and brand in

healthcare; with its highly qualified team, modern infrastructure as well as pioneering

applications utilizing latest technology, academic achievements and great experience.


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Parties to This Business Plan Entrepreneurs:

South Eastern Anatolia UHG (SEA-UHG)

(A Wholly Owned Subsidiary of UHG)

Individual Landlords in Various Cities of South, Eastern and South-East Anatolia(Landlords)

Others:

Physicians in Public Hospitals and Independent Practice, as well as Nurses and

Hospital Administrators currently living or willing to live in those cities

Local Businesses

General Public


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The Business Model Landlords who are mostly wealthy local businessmen show interest in building a

hospital in their cities and apply UHG for consideration.

UHG studies the local healthcare market and if found feasible, drafts and negotiates a

contract establishing a business relationship with the landlords.

Landlords provide a hospital building either by renovating an existing building, or

building a new one according to specifications given by SEA-UHG.

SEA-UHG provides assistance during renovation and/or construction phase with its

architects and engineers.

SEA-UHG provides medical equipment and furniture and operates the hospital.

The rental revenue for landlords is variable and a pre-determined percentage of the

hospital revenue.


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Marketing Highlights


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Macro Environment Turkey in last two decades show enormous development and became one of the key

economic players in Europe and Middle East.

Turkish economy is becoming more and more stable ever year and there is a growing

interest among foreign investors as politics and economy stabilizes.

There is a very big growth potential in the country's economy and the country is a

candidate for EU membership.

As the economy grows demand for better education and world-class healthcare

services, where there is an obvious gap between demand and supply, also grow.


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Competitive Environment Competition from public hospitals are weak due to their very limited resources and

insufficient service levels. There is a serious funding problem for these facilities as

these facilities are funded by the central governments budget.

Teaching facilities (tertiary level providers), where exist, provide high level services but

they also have budgetary constraints and are very crowded. Physicians working in

these facilities are looking into better business opportunities with private providers.

There are few private hospitals but they are operated mostly by local physicians and

inadequate in providing world-class services. Their buildings and equipment are mostly

outdated or poor in quality. Some of these facilities have serious infection control

risks. Independent physician offices ad imaging centers and labs may meet primary care

needs and some outpatient need, however the lack complexity required by todays care

requirements


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The Industry The industry was overwhelmed by public facilities which are funded by central

governments budget. Although this is still the case their dominance is loosing strength

as privately owned healthcare facilities emerge.

Today only about 10% of the market belongs to private hospitals and clinics, but as the

public facilities grow older, their re-furbishing and equipment needs cannot be met by

the central budget.

Government has developed a healthcare transformation plan which ultimately aims

at privatizing the whole industry.

This plan is developed under auspices of The World Bank and IMF, who are very

determined for its success, as they are the main lenders of the country. A new general public healthcare insurance scheme will be taking effect starting from

January 2007. The new scheme integrates payers into a single body.


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Customer Priorities We call customers of healthcare as patients. However their patience is running out

as they compare quality and quantity of healthcare services available to them with

those of developed countries.

Customers of healthcare are now much better informed about their choices than they

were a decade ago. Thus their demand is much more educated.

Current level of hygiene and comfort in crowded public facilities lead patients into

private services. The are willing to pay more for a healthier choice.

Physicians in private healthcare are more emphatic than their counterparts in public

services, as they are being directly paid by the patient.

Price elasticity of demand in healthcare is very low. Patients are willing to pay more, asinability to meet these services are considered life threatening.


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Service Strategies As the population of the country ages and income level increases, cardio-vascular

problems are becoming very common. Therefore availability of cardiology and

cardiovascular surgery is key to success, as they are not widely available in lesser

developed regions of the country.

Patients expect better imaging and lab services which can only be provided with

modern equipment available in wealthy hospitals.

Recently services of private hospitals became available for patients under public

insurance. As these patients are white and/or blue collar workers time management of

these services are important for them and their employees. An integrated approach to

spend less time in the healthcare facility makes both patients and their insurers happy. Dark and dirty environments, long waiting queues and non-smiling faces are not

welcomed in private healthcare. One of the most important service standards will be a

welcoming facility where patients and families may feel the comfort and peace.


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Pricing Strategies The government fixes the prices it pays for the medical services through public

insurance.

The price differentiation is achieved by charging a surplus over the amount paid by the

public insurance.

The amount of surplus is dependent upon availability of similar services in their local

market and ability of patients to pay the difference.

Private insurance companies started provide insurance policies to cover these surplus

charges. Prices for those policy holders are negotiable between hospitals and

insurance companies, but usually does not vary extensively around Turkish Medical

Associations minimum price list. UHG believes that the pricing of its services should not be a barrier to access to better

healthcare. Therefore the pricing of the services will be set according to the local

market conditions, keeping in mind that the quality service can be expensive, at times.


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Distribution Strategies One of the key element for quality healthcare services is to increase accessibility for

those services. This requires understanding local conditions and careful planning to

meet demand, local in character. Strong business relations with local business circles

will enable SEA-UHG to satisfy this need.

Out-patient clinics will be established to capture demand where necessary. These will

become supply centers for patients.

Some of our hospitals will provide specialty services (e.g.: oncology treatments or

special non-invasive diagnostic techniques, etc.) which will be marketed by our other

hospitals in neighboring regions.

Patient and family education not only a right but is a key to success in healthcare. Thecompany will extensively use its resources for this purpose.


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Operations Highlights


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Processes Main Processes in Hospital Operations are:

Outpatient Visits with Lab and Imaging

Lab and Imaging Services to Outside Providers

Ambulatory Surgeries Non-Surgical In-patient Admissions

Surgeries

Emergency Room Visits

Wellness and Checkup Programs

Advanced Diagnostics Services (e.g.: Cath-Lab, CT Angiography etc.)


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Facility Requirements Each Hospital has its own spacing requirements according to its plan of care, however

the following facilities are musts in almost all of our hospitals:

Outpatient Clinics : In Almost All Specialties

Radiology Department : MRI, CT, X-Ray, Fluoroscopy, US-Doppler etc.

Central Laboratory : Microbiology, Bio-chemistry, Pathology

Inpatient Rooms : Single Occupancy

ICUs : Medical & Surgical, Cardio-vascular, Coronary

Cath-Lab : Cardiac and DSA

Operating Theatres : HEPA Filters, Laminar Flow

CSSD : Steam, Ethylene Oxide, Plasma

Catering Services : Patients & families, Employees

Delivery Rooms, Morgue, Administrative Spaces etc


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Equipment and Inventory Requirements Each hospital has a room-by-room equipment inventory list drawn out of its functional

program and plan of care.

Availability on time and proper maintenance of medical equipment is one of the keys

for success in healthcare.

UHG has both experience and buying /negotiation power in purchasing the most

modern medical equipment in both local and international markets.

UHGs central equipment inventory and ability to exchange medical equipment

among UHG hospitals is an another strength factor.

The group has a centralized purchasing department which can expedite

purchasing process significantly.


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Supply Chain Requirements

Large number of different inventory items.

Difficult storage requirements.

Many infrequently used and expensive items.

Mostly provided by just-in-time basis by suppliers.

Advantage of volume buying and volume contracts.

Items require fast delivery.


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Highlights of The Financial Plan The project will be financed both by equity and loans.

As buildings are on long-term lease there will be no initial cash outflow for land,

buildings and alike.

Only medical equipment and furniture will be financed with loans (some in operationalleasing)

The company has no existing loans and liabilities.

The company has signed long-term operational leasing contracts with landlords.

The projected financials are available upon request.


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Human Resources All HR activities will be centrally coordinated from Adana Office.

Two HR specialists will be employed to coordinate the activities.

HR specialists will have special training on JCI standards on credentialing and

continuing education issues. All job descriptions will be written and will be presented to prospective employees

before a job offer and the final interview.

HR specialists will also arrange training for individual hospital managements and

action plans for labor and union issues

A well structured compensation plan will be prepared and submitted to the

management for approval.

A skills inventory will be developed and new hiring will only take place according to

budget and the HR master plan.


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Hospitals Planned Universal Yozgat Physical

Theuraphy & Rehabilitation

Hospital

Universal Sivas Hospital

Universal Malatya Hospital

Universal Mersin Hospital

Universal Bingl Hospital

Universal Hakkari Hospital

Universal Gaziantep Hospital

Universal Adyaman Hospital


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Geographical Positioning

sea-uhg-businessplan ppt v2 (turkey)

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