Start of construction of a new hospital at Ufa
MD Medical Group Investments Plc (LSE: MDMG), Russia’s leading provider of private women’s and children’s healthcare, yesterday held a ground breaking ceremony for a new, state-of-the-art, purpose-built hospital in the Bashkortostan capital of Ufa being constructed by the Company.
MD Medical Chairman, Dr Mark Kurtser and President of Bashkortostan Republic, Mr Rustem Khamitov, marked the start of construction at the 32,000 square metre hospital following receipt of construction permits on 11 February.
The hospital will house a 3,000 unit delivery suite alongside an extensive fertility treatment centre and new women’s and children’s healthcare services with 95 in-patient beds and capacity for 235,000 outpatient admissions per annum. At optimum capacity, the hospital will employ 585 mostly medical staff who will be fully trained in the high standards of care and clinical excellence commensurate with a Mother and Child hospital.
Total investment in the project is expected to be RUB 3.5 billion and will be financed from MD Medical’s own funds. The project is due to complete in late 2014.
The region of Bashkortostan represents an attractive opportunity for MD Medical. With a population of 4.4 million, of which 1.1 million reside in the capital city of Ufa, it is among Russia’s top 10 regions in terms of gross regional product. The region enjoys a higher than average birth rate of 13.7 resulting in approximately 57,000 deliveries per annum. It is currently underserved by maternity services with only 690 beds and no private maternity hospital in the region.
Commenting on the development, Dr Mark Kurtser said:
“The start of construction of our third hospital, in Ufa, represents a significant milestone for MD Medical as we roll-out our successful hospital and clinic network across Russia’s largest and fastest growing regions. Our experience with our existing Mother and Child clinic in Ufa has been extremely positive and, together with the active co-operation of the region’s local authorities, gives us confidence in the need and scale of demand for a women’s and children’s hospital to serve the local community.”
As previously indicated, MD Medical group will continue to expand its business operations into the Russian regions. For example, in addition to the hospital at Ufa, the Company is considering the region of Nizhniy Novgorod, with a population of 3.3 million and approximately 36,000 deliveries per annum. The local authorities in Nizhny Novgorod have already agreed to grant the Company the necessary license for the land where construction would take place. Detailed plans for Nizhniy Novgorod will be disclosed by the Company in full accordance with market practice only after internal approval of the project parameters.