- Our Hospitals
Cleopatra Hospital Company S.A.E. is the largest private hospital group in Egypt by number of hospital beds and number of operating hospitals. The Company holds majority stakes in four leading hospitals in the Greater Cairo Area: Cleopatra Hospital, Cairo Specialized Hospital, Nile Badrawi Hospital and Al Shorouk Hospital, offering a full array of general and emergency healthcare services. In 2015, the Group performed 34,900 surgeries and treated 47,256 inpatients, recorded 606,206 outpatient clinic visits and 278,404 emergency room patients.
The Group’s vision is to become the leading integrated healthcare provider in Egypt through a platform of world-class quality medical facilities and services to enhance patients’ quality of life.
The Group’s four hospitals — Cleopatra Hospital, Cairo Specialized Hospital, Nile Badrawi Hospital and Al Shorouk Hospital — are multi-speciality hospitals that offer a full array of general and emergency healthcare services. Some of their service offerings include general surgery, emergency and ambulance services, cardiology, gynaecology and obstetrics, oncology, orthopaedics and a number of outpatient services, across many specialties, including dental, physiotherapy and primary care.
In addition to the general services that the Group’s hospitals currently offer, it plans to develop centres of excellence in each of the hospitals in separate specialised medical fields, such as renal transplantation and oncological radiotherapy. The centres of excellence will have state-of-the-art equipment for the relevant speciality practice and will staff the most renowned doctors in the respective field. This business model allows patients to attend the Group’s facilities at locations convenient to them for routine examinations, general procedures and operations and general services such as pharmacy, blood bank and diagnostic services while also being able to offer highly specialised services at other hospitals in the Group’s platform.
Al Shorouk Hospital
|Built-up Area1||5,270 sqm|
|# of Beds2||120|
|# of Operating Rooms||6|
|# of Outpatient Clinics||17|
|# of Consultants Doctors3||221|
|# of Resident Doctors||96|
|# of Nurses||304|
Nile Badrawi Hospital
|Built-up Area||10,980 sqm|
|# of Beds2||139|
|# of Operating Rooms||5|
|# of Outpatient Clinics||17|
|# of Consultants Doctors3||269|
|# of Resident Doctors||94|
|# of Nurses||138|
Cairo Specialized Hospital
|Built-up Area||14,600 sqm|
|# of Beds2||200|
|# of Operating Rooms||9|
|# of Outpatient Clinics||17|
|# of Consultants Doctors3||206|
|# of Resident Doctors||183|
|# of Nurses||212|
|Built-up Area4||7,380 sqm|
|# of Beds2||165|
|# of Operating Rooms||6|
|# of Outpatient Clinics||14|
|# of Consultants Doctors3||283|
|# of Resident Doctors||260|
|# of Nurses||335|
As of December 31, 2015
Note(1): Al Shorouk Hospital owns an adjacent vacant plot of land with a total area of 336.5 sqm, which has not been built yet, and area is not included in BuA
Note(2): Includes all types of beds (accommodation, ER, operating rooms, cath labs, ICU, NNICU, incubators and dialysis)
Note(3): Consultant doctors are not employees of the hospitals – they are only allowed to perform surgeries and give medical consultations in the outpatient clinics
Note(4): 1,176 sqm have been acquired in 2006 to be used for potential expansion, which has not been built yet, and area is not included in BuA
The Group’s hospitals date back as far as 1976 when Dr. Hassan Zahed, a prominent Egyptian physician, opened Cairo Specialized Hospital, one of Egypt’s first private sector hospitals. Cleopatra, Nile Badrawi and Al Shorouk Hospitals were established in 1979, 1982 and 1981, respectively.
In 2014, Abraaj NAH acquired a majority beneficial stake in Cairo Specialized Hospital Company and, in the same month, acquired a majority beneficial stake in Cleopatra Hospital Company. In 2015, the Company acquired a majority stake in Nile Badrawi Hospital Company and, in 2016, a majority stake Al Shorouk Hospital Company.
Improve quality of patient care
The Group’s mission is to deliver the finest quality of healthcare in a safe, reliable and caring environment, through highly trained healthcare providers, state-of-the-art facilities and the latest medical technology, putting patients and their families first. To achieve this, the Group consistently invests in its infrastructure and the most advanced technology through its short-term capital expenditure plan. As at 31 March 2016, the Group had a total of EGP 135.7 million cash available that can be used for capital expenditure and operational activities. It has allocated a portion of such cash to be used in 2016 for medical capital expenditure such as new electric beds, ventilators, ambulances, interventional x-ray and other medical equipment; civil capital expenditure such as building infrastructure, electromechanical infrastructure and vehicles; and information technology systems, including the implementation of a new hospital information system and ERP system. The Group believes that continued investment into the quality of care provided at its hospitals is key to achieving its aim of becoming the leading integrated healthcare provider in Egypt.
Enhance utilization and optimise existing capacity
The Group aims to grow its number of patients by enhancing utilization rates and optimising its existing facilities. The Group believes that with better management, its recently acquired hospitals have the potential to be as operationally efficient as Cleopatra Hospital. The Group is implementing a plan to reallocate space in its hospitals to increase space for services in higher demand, such as the intensive care units (ICUs). There is currently a shortage of ICU beds in Egypt, and such beds tend to receive between 50% and 100% more revenue than other hospital beds. The Group expects that this plan will result in new ICU beds in Cleopatra Hospital and Nile Badrawi Hospital. The Group is also targeting strategies to decrease waiting times for patients and plans to increase the operating hours of its outpatient clinics to accommodate more patients. At its inpatient departments, the Group is aiming to shorten average length of stay through enhanced clinical and operational procedures. The Group also plans to expand and enhance its ancillary service offerings, including radiology, laboratory testing and pharmacy services so as to increase revenue per patient.
Build additional capacity
The Group plans to increase capacity by expanding its existing facilities. The Group has acquired two facilities, one adjacent to Al Shorouk Hospital and one adjacent to Cleopatra Hospital. It plans to develop those facilities into expansions of the existing hospitals. The Al Shorouk Hospital expansion will increase capacity by approximately 40 beds, including beds dedicated to ICU, which tend to achieve higher revenue than other hospital beds. The Cleopatra Hospital expansion will alleviate the current high occupancy rate at that hospital’s outpatient clinics and ICU department, among others. The expansion is expected to increase capacity by approximately 100 beds. The expansions of Al Shorouk and Cleopatra Hospitals are expected to cost approximately EGP 150 million and EGP 250 million, respectively, and the Group intends to finance these projects with the net proceeds of the Closed Subscription.
Develop centres of excellence in separate specialised medical fields at each of the Company’s hospitals to drive higher margins
To leverage the expertise of certain of the Group’s consultant physicians, each of the hospitals will house a centre of excellence in separate specialised medical fields while each also maintains its general, multi-speciality business model. The centres of excellence have state-of-the-art equipment for the relevant specialty practice and staff the most renowned doctors in the respective field. This business model results in a mix of offered services geared toward more specialised services, which commands premium pricing and higher margins. Establishing centres of excellence also decreases required capital expenditure because the Group will not need to invest in the same specialty equipment in each of its hospitals.
Expand customer reach through a feeder network of polyclinics
The Group aims to implement a hub-and-spoke polyclinic business model whereby Cleopatra-branded polyclinics in key secondary urban developments would act as extensions of the Group’s hospital platform. The polyclinics, which would require relatively low capital expenditure to setup and operate, would have the capabilities to perform minor procedures, routine examinations across key specialties and diagnostic testing. The polyclinics could leverage the Group’s size when referrals to a larger hospital are required for more complex procedures. The Group is targeting to begin implementation of this strategy by the end of 2016 and is currently targeting a total of 10 polyclinics opened over five years. After successful implementation of this plan in the Greater Cairo area, the Group will look to establish polyclinics or smaller hospitals in other governorates in Egypt, allowing it to capture patients’ business when they travel to Cairo, the national medical centre, for highly specialised procedures.
Broaden the Company’s reach and expand scale through opportunistic acquisitions
The Group is also targeting expansion through opportunistic acquisitions of existing hospital facilities in Greater Cairo. The Group has a track record of growth through acquisition and has been able to reduce costs through economies of scale and operational synergies. The Group intends to leverage its scalable business model, strong brand and reputation for quality medical services to continue this expansion where suitable opportunities arise. The Group will seek to expand into areas of Cairo in which it does not yet have a presence and, in the longer term, will also explore expansion into governorates outside the capital.