(MENAFN- The Peninsula) A major UAE-based private healthcare group is set to enter Qatar's healthcare sector.
NMC Health, the emirate's leading integrated healthcare provider, announced it has entered into an agreement to acquire 'ProVita', another leading provider of long-term medical care in the UAE, which has announced its interest in Qatari market.
The London-listed NMC Health, in a regulatory filing to the bourse, said it has entered into an agreement to acquire 100 percent of the issued share capital of ProVita International Medical Center (ProVita), provider of long-term medical care in the UAE.
The acquisition is due to be completed by Q3, 2015.
ProVita has been exploring expansion into Qatar, where it has identified as priority markets due the country's reportedly 'increasing healthcare expenditure, high prevalence of chronic and lifestyle diseases, aging population, lack of dedicated long-term care facilities and a substantial number of patients seeking treatment abroad.
ProVita focuses on chronic ventilator-dependent patients, who require regular medical nursing and rehabilitative treatments in a non-hospital environment.
The health provider has built a strong reputation in the market since its establishment, developing solid relationships with healthcare facilities and authorities, thereby securing a steady flow of patient referrals.
"ProVita fits into the wider group strategy of positioning NMC as an integrated healthcare provider, establishing centres of excellence across identified specialities and along the care pathway in its core market. ProVita has been progressing towards entering the key markets of Qatar and Saudi Arabia," said Dr B R Shetty, Executive Vice Chairman and Chief Executive Officer, NMC Health.
The acquisition of ProVita marks the entry of NMC into the strategic under-supplied long-term care market, he added.
According to market researcher BMI, Qatar's healthcare sector is projected to experience strong growth going forward. A sizeable expansion projects in the sector are underway in the country. Government spending will remain elevated. Growing private sector engagement will also drive the country's healthcare market growth.
"We are awaiting approvals for investments in Saudi Arabia and Qatar that could happen soon," Prasanth Manghat, Deputy Chief Executive, told Reuters. "We are looking at some international players."
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