Summary of Proposed Investment
Project Number
11608
Company Name
Red Sanitaria Hospiten
Date SPI Disclosed
Dec 26, 2002
Country
Dominican Republic
Industry
Health, Education and Life Sciences
Projected Board Date
Feb 7, 2002
Status
Completed
Sector
Hospitals and Clinics
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Apr 9, 2003
Signed : May 26, 2003
Invested : Aug 12, 2003
Project Description
Hotel and resort developments require local provision of infrastructure and services, among which healthcare is an important component. In regions where tourism is a significant economic sector, large turnovers of short term visitors and seasonal residents call for a specifically adapted healthcare delivery model, which was successfully developed by Hospiten in Spain. Hospiten is now exporting this model to the Dominican Republic and Mexico.
The facilities established by Hospiten in the Dominican Republic and in Mexico will both assist in the development of the tourism industries as well as provide much needed quality health care to the local population.
- Support the tourism industry: The provision of quality health care is an essential service needed for the development of the tourism industry. For developing countries to be competitive in this sector, health services should be comparable to those of industrialized countries. Tourism is a major contributor to the economies of Dominican Republic and Quintana Roo, with the majority of tourists coming from the United States and Europe. The new Hospiten facilities in Cancún and Riviera Maya will provide high quality medical care to such tourists, helping to ensure the perception of these areas as safe destinations for vacationers and business travelers. This perception may become even more vital, as several new, upscale hotel projects are being planned. Hospiten Santo Domingo will also have a positive effect on tourism, as approximately 20% of its clients will be tourists, in part referred from the existing Bávaro hospital.
- Improve local health care: Hospiten Santo Domingo will serve predominantly the local population, and as such will expand access to high quality health care in the capital city. The public health system in Dominican Republic suffers from serious systemic problems, including inadequate financing, low coverage, an emphasis on curative care, redundant and overused facilities, and inefficiencies. As a result, general healthcare provision is poor, as reflected in the country’s weak health indicators. In addition to providing much-needed quality services, Hospiten Santo Domingo would also bring state-of-the-art technologies and management practices to the capital, thus demonstrating best practices to other public and private providers.
IFC plays essentially two roles in this project: as a financier, and as an adviser on operational best practice. From the financier’s perspective, IFC would provide appropriately structured long term financing, thereby enabling Hospiten to implement its project and maximize its chances of success. In the process, IFC is also assisting Hospiten in its efforts to diversify its sources of funding by approaching banks to place the new B loan. Finally, IFC’s project appraisal and subsequent project supervision and reporting requirements supports Hospiten’s shareholders current efforts to rationalize corporate decision making process and strengthen internal controls. IFC’s involvement is also encouraging the company to further focus on environment, social and operational issues to improve its environmental consciousness and clinical outcomes. Measures or suggested improvements include water treatment, medical waste management, training, disinfection and sterilization processes.
The facilities established by Hospiten in the Dominican Republic and in Mexico will both assist in the development of the tourism industries as well as provide much needed quality health care to the local population.
- Support the tourism industry: The provision of quality health care is an essential service needed for the development of the tourism industry. For developing countries to be competitive in this sector, health services should be comparable to those of industrialized countries. Tourism is a major contributor to the economies of Dominican Republic and Quintana Roo, with the majority of tourists coming from the United States and Europe. The new Hospiten facilities in Cancún and Riviera Maya will provide high quality medical care to such tourists, helping to ensure the perception of these areas as safe destinations for vacationers and business travelers. This perception may become even more vital, as several new, upscale hotel projects are being planned. Hospiten Santo Domingo will also have a positive effect on tourism, as approximately 20% of its clients will be tourists, in part referred from the existing Bávaro hospital.
- Improve local health care: Hospiten Santo Domingo will serve predominantly the local population, and as such will expand access to high quality health care in the capital city. The public health system in Dominican Republic suffers from serious systemic problems, including inadequate financing, low coverage, an emphasis on curative care, redundant and overused facilities, and inefficiencies. As a result, general healthcare provision is poor, as reflected in the country’s weak health indicators. In addition to providing much-needed quality services, Hospiten Santo Domingo would also bring state-of-the-art technologies and management practices to the capital, thus demonstrating best practices to other public and private providers.
IFC plays essentially two roles in this project: as a financier, and as an adviser on operational best practice. From the financier’s perspective, IFC would provide appropriately structured long term financing, thereby enabling Hospiten to implement its project and maximize its chances of success. In the process, IFC is also assisting Hospiten in its efforts to diversify its sources of funding by approaching banks to place the new B loan. Finally, IFC’s project appraisal and subsequent project supervision and reporting requirements supports Hospiten’s shareholders current efforts to rationalize corporate decision making process and strengthen internal controls. IFC’s involvement is also encouraging the company to further focus on environment, social and operational issues to improve its environmental consciousness and clinical outcomes. Measures or suggested improvements include water treatment, medical waste management, training, disinfection and sterilization processes.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mario de la Torre, Director General
Hospiten International
E-mail: MTorre@hospiten.es
Hospiten International
E-mail: MTorre@hospiten.es