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Private Hospitals


  1. Product of Service Description- These are health service institutions which provide quality and efficient health care services for clients who can afford the fees and other expenses. During the last 10-15 years private clinics and hospitals have been established in Addis Ababa. This project idea envisages the establishment of one or two small private hospitals in the Amhara Region.


  1. Market Potential The market potential for the services to be provided by private hospitals depends on two main factors. These are (a) quality of health care services provided in the public health care sector and (b) standard of living of the people living in a given area. If the quality of services given by the public health sector is believed to be good, people do not have any incentive to go to private clinics or hospitals. If the case is other wise, people with better income will go to private clinics and hospitals. This is what has been happening in Addis Ababa during the last 10 years. The situation could be the same in other major urban centers of the country. In the Amhara Region in cities like Bahir Dar, Gondar and Dessie, there are people who can afford to pay for the services of private clinics and hospitals. These people come to Addis Ababa to get health care services from private institutions incurring additional expenses for transport, hotels, food and other. Subject to further market study, there seems to exist a sufficient market for the services of small private hospitals in some urban centers in the Amhara Region.


  1. Estimated Investment- For a general hospital with about 50 hospital beds, the investment cost will be:

Ÿ  Buildings 70m2 at Br. 2000/m2 =        2,500,000

Ÿ  Furniture equipment, texture                   1,500,000

Ÿ  Working capitals                                         500,000


  1. Benefits- Improves health care services of the region, reduces the burden on public health care facilities, and strengthens the health care capacity of the Region.
  2. Location- Bahir Dar, Gondar, Dessie.