Guide For Investors In Private Health Care In Emerging Markets

Topics: Health care, Medicine, Health economics Pages: 68 (23264 words) Published: August 6, 2015
Guide for Investors in Private
Health Care in Emerging Markets

IFC Guide for Investors in Private Health Care in Emerging Markets

i

Contents

ii

Foreword

3

Acknowledgements

4

About IFC

5

Acronyms

7

Introduction

9

Opportunities and Trends in Investing in the Health Sector

10

Marketing to the Private Health Sector

19

Assessing Health Sector Investments

25

Case Study: Banca Transilvania, Romania

34

Success Factors and Common Pitfalls for Health Care Businesses

37

Moving Forward

41

Annex 1: Listed Health Care Company Statistics

44

Annex 2: Health Expenditure in Select Countries

47

Annex 3: Resources for Market Information and Statistics

51

Annex 4: Sample Hospital Project Screening Template

52

Annex 5: Financial Ratios, Metrics, and Definitions

54

Annex 6: Site Visit Checklist

55

Annex 7: IFC Code of Conduct for Health Care Organizations

58

Annex 8: Bibliography

61

Annex 9: Photo Credits

62

Annex 10: IFC Contacts

63

IFC Guide for Investors in Private Health Care in Emerging Markets

Guide for Investors
in Private Health Care
in Emerging Markets

This guide uncovers market
opportunities in the health sector
and addresses investors’ knowledge
gaps to stimulate greater interest and
investment in this important highgrowth sector.

2

IFC Guide for Investors in Private Health Care in Emerging Markets

Foreword

Always present in every health care system, the contribution of the private health sector has grown rapidly in emerging markets, in particular over the last two decades. Although it remains fragmented, rapid consolidation has occurred in recent years, resulting in the emergence of a more corporate health care sector in many countries. Investors and financial institutions—which should constitute the major financing sources for the health sector— often have limited knowledge of the opportunities and risks pertinent to the sector. As a result, health care organizations, particularly small and medium enterprises, have limited access to financing to expand and improve their operations.

The Guide for Investors in Private Health Care in Emerging Markets shares our understanding of this market opportunity. It also consolidates the lessons IFC and its partners have learned about providing financing to the health sector, and discusses success factors in entering the market and growing sustainable and impactful activities. This guide can be used by investors and financial institutions that are considering entering this growth market for the first time or by those that want to formalize and expand their health sector investment strategy. I hope that it will stimulate higher levels of interest and investment in this important sector. IFC is the largest multilateral investor in private health care in emerging and developing economies. Since 2002, we have provided more than US$1 billion of mainly debt and equity financing to over 80 projects in more than 30 countries. This support has enabled over $3 billion of investment in the private health sector. We are proud of our leadership role in financing socially responsible private health care in emerging economies.

Guy Ellena
Director
Health and Education, IFC

IFCIFC
Guide
Guide
forfor
Investors
Investors
in in
Private
Private
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Health
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Emerging
Emerging
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Markets

33

Acknowledgements
This guide was prepared with support from Banyan Global. We gratefully acknowledge the generous sharing of lessons learned by Fady Chreih, Director of the Healthcare Division of Banca Transilvania, Romania. The Guide was funded as part of the IFC Health and Education Advisory Services project.

4

IFC Guide for Investors in Private Health Care in Emerging Markets

About IFC
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