Sunday, February 18, 2018
The Healthcare Network Launches In Dubai
02-07-2018


The Healthcare Network (THN), based in the Dubai International Financial Centre, is an innovative business model for the healthcare industry which brings together providers and insurers in a partnership based on the fundamentals of ethical performance, values and the quality of care delivery.

THN has one of the most experienced healthcare management teams in the GCC and the business is 40% owned by management and 60% by strategic investors.

With over 2,500 clinical providers operating within Dubai alone, it is not unusual to see clinics, small hospitals or individual Doctors working at just 30 – 40% capacity, struggling to maintain a viable, quality assured practice.  

ADVERTISING
With ongoing healthcare market consolidation, the continued roll out of mandatory health insurance together with the prospect of DRG coding or Value Based Funding replacing CPT coding and ever tighter regulation, many healthcare operators are being forced to close down or join larger groups during this ‘perfect storm’.

Offering a ‘lifeline’ to smaller healthcare operators under threat, THN provides an innovative solution aiming to bring together a network of independent clinics and hospitals who will benefit from an umbrella organisation that offers support in all key areas of healthcare management together with greater leverage with insurers and suppliers. THN will aim to help owners to gradually monetarize their assets in a reverse to the typical private equity model by fixing and building the assets ahead of an exit event.  THN anticipates that within 5 years the group can move to a successful IPO.

Led by former CEO and Founder of Anglo Arabian Healthcare, Mark Adams, who takes the Executive Chairman role at THN comments;

“I am delighted to accept the post of Executive Chairman of The Healthcare Network and to join an impressive Board of Directors together with a highly experienced management team.  

For too long, providers and insurers have been on opposite sides of the healthcare journey, with different interests and agendas. The Healthcare Network seeks to build a network of ethical providers who accept the need for safe, high quality healthcare, delivered with efficiency and the patients best interests at the forefront. THN will provide smaller providers with the advantages enjoyed by large clinical networks but with the support of the insurance industry and patronage of large employers. Whilst we are launching in the UAE in 2018, we are hoping to quickly scale throughout the GCC and to consolidate the group through an IPO within a five-year window.  The Healthcare Network is one of the most compelling and innovative healthcare projects in the GCC and I am looking forward to working closely with the team”.

Seeking to work with an initial 50 clinics, THN will work closely with independent operators, helping them to access the highest standards of finance, HR, procurement, licensing and insurance revenue management support that they could not afford at this level on their own. 

With the initial group of clinics or small hospitals gaining a consolidated EBITDA of over 100M AED, the prospect of private equity consolidation and then a planned IPO in short order, is compelling.

“We believe that by using our services, clients will be able to implement best practice accounting and benefit from reporting standards which ultimately helps create value.   In addition, by using the size of our network, we will be able to optimize supplier contracts and reduce associated costs as a group, we will certainly maximise the potential sales value of our individual clients.” Says Hani Helou, Managing Director of Finance for THN.

In addition to a range of shared services, the THN partners agree to use generic medications and to refuse incentive payments for referred patients on diagnostic services. This in turn, reduces the claims exposure to large employers and their insurance companies therefore encouraging exclusive referral arrangements.
 


Advertising Info




Advertising Info


ADVERTISING INFO
A Cyber Gear e-venture
We accept guest posts. Contact us now.