Description of Project
The Client is a Special Purpose Vehicle being established to take on the roles of developer for a city hospital in Setapak, Kuala Lumpur. The project has been positioned as one of the Entry Point Projects (EPP) in Healthcare pillar under the twelve National Key Economic Areas (NKEA) in Malaysia.
Full Story
This NKEA was the core of the Economic Transformation Program (ETP) under the Malaysia’s Government. This ETP was expected to play an important role in economic development, rural development and uplifting income. This hospital project is expected to bring various socio-economic benefits such as increase in GNI, jobs creation and promote health tourism.
Hospital development is part of the social welfare provided by the Government for the benefits of the citizen. To better ensure this development could achieve the targets of bringing affordable healthcare services with good quality at a financially feasible manner, the Client is desirous to undertake a consultancy study that will help in the set-up of the hospital and implementation of the business.
Key Outcomes
Our role was to consult and assist in the setup and implementation of a hospital with integrated property and residential complex on a 2-acre site.
We helped the Client to conceptualize the hospital development and crafted a masterplan which incorporated the property and residential elements as an integrated development that offer greater values to the surrounding communities.
Upon the finalization of the business plan, we advised the Client on the strategy to secure for funding and financing for the entire project, from design to construction, then the operations and asset management of the facilities.
Leveraging on the expertise of subject matter expert in the healthcare sector, we manage to design a financial model that capture most of the significant components in running a hospital and managing the large volume of medical machinery.
This follow by a detail analysis on the potential partnership model with healthcare operator with financial forecast on various important metrics such as the investment return, project financials and cash flows etc. This has helped the Client to better evaluate the pro and cons under each partnership model.
With this as basis, we begun to identify potential healthcare operator based on pre-approved criteria such as the track record, capabilities of management team and financing capabilities etc. Based on the business plan and financial forecast, we helped to prepare an information memorandum for conditional term sheet. We also prepared a teaser and assisted to source for a renowned hospital operator from Malaysia, India, Japan, Indonesia and Thailand to complement the project.
Important Notice
*We take our clients’ confidentiality seriously. While we keep their names anonymous, the results are real.
