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Saudi Arabia's Ministry of Health and the National Centre for Privatisation & PPP (NCP) have awarded the operation and management contract for the SABIC Specialised Behavioural Healthcare Hospital in North Riyadh to a joint venture comprising Saudi and German healthcare operators.
The SEH Healthcare consortium comprises Tadawul-listed SMC Healthcare, which operates hospitals and specialised medical centres in Riyadh, Germany-based rehabilitation group Dr. Ebel Fachkliniken and Saudi mental healthcare services provider Health Gates Complex, according to an NCP press statement.
The statement said the project supports the objectives of the Health Sector Transformation Programme, which aims to improve the quality and efficiency of healthcare services while increasing private sector participation in healthcare delivery.
The specialised facility will provide integrated mental health and behavioural care services, including addiction treatment, rehabilitation and aftercare programmes, it noted.
The 150-bed hospital, spanning approximately 62,500 square metres (sqm), was developed through cooperation between the Ministry of Health and Saudi Basic Industries Corporation (SABIC), which contributed to the construction, equipping and infrastructure development of the facility, the statement said.
Concession details
In a separate statement to the Saudi stock exchange, SMC Healthcare confirmed that it received the award letter for the project, which carries an estimated value of approximately 3.8 billion Saudi riyals ($1 billion), on Wednesday,17 June.
The company said its 51 percent-owned subsidiary, Al-Mukhtas Al-Sehhi Medical Company, will be responsible for managing and operating the hospital under a 15-year concession agreement.
According to SMC Healthcare, the facility will also include 19 outpatient clinics, six dedicated day-care rooms and specialised treatment units covering mental health, addiction treatment, rehabilitation, and aftercare.
The scope of the project includes medical and non-medical operations and maintenance (O&M), facility management (FM), equipment management, and specialised clinical and non-clinical services in mental health and addiction treatment.
The statements from NCP and SMC Healthcare didn't disclose JV ownership structure, or details on project cost and financing mechanisms.
(Writing by SA Kader; Editing by Anoop Menon)
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