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NMC buys out ProVita for $160.6m

ProVita focuses on chronic ventilator-dependent patients, who require regular medical, nursing and rehabilitative treatments in a non-hospital environment.



By Haseeb Haider - Principal Correspondent, Abu Dhabi

Published: Tue 16 Jun 2015, 9:44 PM

Last updated: Wed 8 Jul 2015, 2:47 PM

Abu Dhabi — London listed NMC Health has acquired ProVita International Medical Center (ProVita), for $160.6 million from TVM Capital Healthcare Partners, the Olayan Group, Al Zarooni Emirates Investment and other minority shareholders.

ProVita focuses on chronic ventilator-dependent patients, who require regular medical, nursing and rehabilitative treatments in a non-hospital environment. Currently, ProVita operates a total of 90 long-term care beds in Abu Dhabi and Al Ain, with a further 30 beds expected to become operational in Abu Dhabi by the third quarter. The acquisition, adds an expected 120 beds to NMC’s expected 2015 licensed bed capacity of 720 for a total of 840 beds. Dr B.R. Shetty, executive vice-chairman and chief executive officer of NMC Health, said: “The acquisition marks the entry of NMC into the strategic and under-supplied UAE long-term care market.”

Encouraged by its success in the UAE and based on the very limited availability of dedicated private long-term care facilities in the Gulf Cooperation Council (GCC) countries, ProVita has been progressing towards entering the key markets of Saudi Arabia and Qatar. ProVita generated an adjusted Ebitda of $12.7 million and an adjusted net income of $10.7 million for the 12 month period to March 31, 2015.

Demand for long-term care in the UAE continues to see substantial growth, mostly driven by the following factors: an elderly population expected to reach 290,000 by 2020 according to Business Monitor International, representing a CAGR of 8.3 per cent between 2014 and 2020; increased levels of serious injuries requiring specialist long-term care; and elevated incidences of genetic disorders.

This is well supported by the increased government spending in the healthcare sector which is expected to reach $10 billion by 2018, mandatory health insurance law and the government’s focus on local treatment facilities due to the high costs of treatments abroad. Around 58 per cent of ProVita’s patients are referred from government-owned Seha hospitals within Abu Dhabi and Al Ain. Approximately 21 per cent are repatriated from abroad, while the remaining 21 per cent are referred to ProVita through other hospitals in the UAE.

As of March 2015, 69 per cent were under the severe category of ventilated patients, as defined by Health Authority of Abu Dhabi (HAAD).

ProVita is exploring expansion into other markets within the region. Qatar and Saudi Arabia were identified as priority markets due to the increasing healthcare expenditure in both countries, high prevalence of chronic and lifestyle diseases, aging population, lack of dedicated long-term care facilities and a substantial number of patients seeking treatment abroad.

haseeb@khaleejtimes.com


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