Bridge clinic boss calls for foreign investment in health
The Managing Director of The Bridge Clinic, Lagos, Dr. Richardson Ajayi, has called on foreign investors to choose Nigeria as their destination for health investments.
Ajayi made this call at the 4th Annual Africa Hospital Expansion Summit in Accra, Ghana.
The IVF specialist in his address noted that Nigeria’s health care sector had shown significant growth over the last five years and will continue to grow despite the current economic challenges.
He identified the increasing prevalence of non-communicable diseases, reduction in out-bound medical tourism due to the difficulties with obtaining foreign exchange and the increasing access to health insurance as key drivers for investing in Nigeria.
Ajayi, however , stated that short-term investment model may not work as much in Nigeria as the country’s health sector lacks the requisite systems to support it.
Ajayi, said, “Investors expect a return for their investments and most prefer the return sooner rather than later. Unfortunately, healthcare in our region is not mature enough for this type of investment strategy. Healthcare in our region is still in a nascent stage and the systems such as supporting government policies as well as the required organised ecosystem are not yet in place to create the platform for growth.”
He, therefore called for a different approach that would ensure that investments make the required developmental impact while, at the same time, delivering adequate financial returns.
Ajayi stated, “Health care investments have to be considered from a developmental and long-term perspective. Investments with a focus on immediate earnings such as earnings before interests, tax, depreciation and amortization may institute a profit-driven culture which runs in the face of providing care and the right balance must be struck.
“A more favourable structure will be for investors to look into making equity investments with a focus on long-term growth rather than a quick exit.”
He listed preferences for the sole proprietor model; patients dwindling disposable income, poor customer service orientation, and inadequate skill sets among health workers as some of the challenges that could hinder investments in the sector.
PUNCH.
