Dubai: Foundation Holdings, a strategic investment firm focused on investing in health care, education and consumer sectors, on Monday launched Right Health, a new value health care organisation.
Right Health has been established through the acquisition and integration of 31 existing medical and health service providers, including facilities under Ruby Clinic and Group Companies (RCGC), Class Medical Centre (CMC) as well as BioHealth Diagnostic Centre (BH).
Right Health includes a range of clinics, pharmacies, diagnostic centres and a drug store, that are already operational and serve a combined total of approximately 450,000 patients. Additionally, it also already conducts 150,000 lab tests annually and has over 200 medical and administrative staff on its rolls.
Foundations Holdings, through Right Health wants to disrupt the UAE and the GCC health care market through efficient and cost-effective delivery of health care to lower income masses and build a profitable business model.
“We see a huge market that is scattered and laden with high costs. Clearly there are opportunities to streamline costs, bring in efficiencies and deliver cost effective health care services at affordable rates and make profits,” said Abhishek Sharma, CEO of Foundation Holdings.
With an initial investment of Dh500 million, Right Health aims to become the premier provider of quality and affordable health care for the working-class population. The formula of targeted, smaller health care centres/clinics in strategic locations will allow Right Health to provide affordable and quality health care, accessible to a broader population, including lower-income patients.
The long-term strategy for Right Health, is to ensure its profitability and grow the company to a scale big enough to take it public.
“We would then issue an IPO and list it on the market in next three years,” Sharma said.
The UAE’s health care market is estimated at $17 billion (Dh62.4 billion) and is expected to grow at a rate of 11 per cent per annum. Driven by a growing younger population and a favourable government policy, this transaction comes at a critical time for the expanding health care sector. Potential growth in Dubai alone, from the implementation of mandatory health insurance is estimated to contribute additional revenue of Dh2 billion per annum to the sector by 2018.
Going forward the company has plans to expand its geographical footprint across GCC.
“Our plan for Right Health is to increase its geographical footprint to 51 facilities that can contribute to improving over a million lives by 2022,” Sharma said.
The company is planning to consolidate service providers in the lower segment of health care services by making the latest technology and management tools available to them.
“Right Health is committed to transforming the overall value health care experience and fulfilling the critical objective of delivering exceptional and affordable patient care. By reducing waste in health care systems, we will free up funds for interventions that deliver value by improving patient outcomes,” said Dr Sanjay Paithankar, managing director of Right Health and previously founder of Ruby Clinic and Group Companies.
