Shares in healthcare provider NMC Health have risen after it revealed that its subsidiary was awarded a five-year contract to operate and manage the new Sheikh Khalifa General Hospital in Umm Al Quwain, in the United Arab Emirates (UAE).
The company's fee income will total between $4.0m and $5.4m in the first year of operation, if it meets certain criteria.
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At the end of the five years term of the agreement, the executive management team is expected to train and hand over their responsibilities to new management to be employed by the UAE Ministry of Presidential Affairs.
Under the terms of the contract, all of the capital expenditure, hospital and staff expenses will be met by the ministry.
The hospital is expected to open on December 2nd and will offer a wide range of clinical and healthcare services including general medicine and surgery, emergency and intensive care, and dental services. It will have a capacity of 55 rooms for out-patient consultation, examination and treatment, as well as nine operating theatres and a total of 205 in-patient rooms.
Dr B. R. Shetty, Chief Executive Officer, said: "We are delighted to have been awarded the contract to operate and manage the newly constructed Sheikh Khalifa General Hospital in Umm Al Quwain on behalf of the UAE Ministry of Presidential Affairs. This is the fourth emirate in which NMC Healthcare will operate, and consolidates our position as the leading pan-UAE private healthcare operator.
"This contract is a new income stream for the group, providing healthcare management services to a third party, and the award of the contract is a testament to the reputation of NMC Healthcare which has built up across the UAE over nearly four decades.
"We look forward to working with the UAE Ministry of Presidential Affairs in making the Sheikh Khalifa General Hospital a success. We also look forward to caring for the population of Umm Al Quwain and the Northern Emirates, by providing first class healthcare services to them."
The share price rose 6.01% to 180p by 13:30.
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