PRIDE HOSPITAL PROJECT – CREATING A MEDICAL TOURISM HUB IN ETHIOPIA

1. PRIDE HOSPITAL PROJECT – CREATING A MEDICAL TOURISM HUB IN ETHIOPIA 1st Advisory Board Meeting May 14, 2012 Addis Ababa

2. Can Ethiopia Be A Medical Tourism Hub • Large Volume Medical Tourism Out of Ethiopia Exists • 600 to 800 pts per month travel to BH monthly • Ethiopia is third largest customer to BH • 12,000 customers in Ethiopia and 10,000 in neighboring countries • Ethiopian Airlines Reach • 41 Africa and 17 Middle East destinations • By 2023 Ethiopian Airlines hopes to attain 11 million international passengers • Growing business community and business class • 38% of Ethiopian Population is in Middle Class earning 4-20 dollars per day (AfDB 2011) • International/Diplomatic Community • Estimated USD 4000 per person insurance payments

3. You Are Here

4. The Feasibility Analysis • To Be Done in Two Phases • ICME – International Consulting Management and Engineering • Local partner – local knowledge • At risk fee • Interdisciplinary team of doctors, economists, medical technicians, care staff and engineers • Several years experience in hospital process management • Projects in the United Arab Emirates and in Europe • Relies on adaptation of functional and structuring processes and less on individual actions to achieve sustainable cost optimization • Recently completed a 688 bed hospital in Abu Dhabi

5. Pre Feasibility Analysis • Key Questions - TOR • Assessment of market demand – by diagnosis category (cancer, orthopedics, cardiac, trauma etc) • Assessment of regulatory policy • Target population and health status (mostly done) • Current referral system for missing services • Price structure and if target population can afford it • Investment need • Staffing need • Key risks • Time frame – 3 months

6. Pre Feasibility Analysis • Goals • To determine viability • To determine capital demand • To raise capital and financing • Phase II Feasibility • Detailed analysis of prefeasibility • Design and functionality • Information technology factors • Organogram and ownership structure • Estimating soft costs

7. Joint Venture Outlooks • Bangkok Hospital • Meeting with CEO in New York – May 13th • Management agreement as well as equity partnership • Willing to perform feasibility • The Swiss Leading Hospitals – Rak Hospital • Service agreement and referral service being explored

8. Areas of Focus

9. Equity and Debt Financing • Debt Financing • Ethiopian Development Bank – 40-60 • African Development Bank • Private Banks • OPIC • IFC • Equity Financing • Share company – public vs small group • Joint Ventures • Private equity - ?SGI • Partnership with private hospitals • IFC, OPIC • Final model to be determined in the future

10. Role of Government • Incentives • Land – out of lease • Loan – mezanine • Tariffs – importation and business tax • Regulation • Feasibility to recommend changes/adjustments • International staff licensing, income repatriation, medication and equipment import

11. Staffing and Management • Management • Professional management firm – JV or separate contract • Recruiting and training Ethiopian managers • Staffing • Return, partial return, or telemedicine participation of Ethiopian physicians from US, Canada, Europe • JV hospital to provide staffing • Local physician participation • Training of up and coming physicians • Strong hospitality training of staff at all levels

12. Marketing and Public Relations • Preparing for public shares? • Branding the hospital

13. Next Steps • Registration of GEDHF in Ethiopia • Forming Advisory Board – today • Feasibility study to be completed • Joint Ventures to be solidified in coming months • Share company to be created • Land acquisition

14. Role of Advisory Board • Networking • Advising at all levels • Land acquisition • Financing - Debt/Equity • Expanding the Advisory Board • Share company initiation – Founding Members? • Structure • Local coordinators hired • Communication among Board crucial – monthly meeting?, Board coordinator

15. Discussion