FEASIBILITY STUDY
ABII MEDICARE LTD
PLOT 534, TUFNELL DRIVE
KAMPALA, UGANDA
DATE: 1.6.2018
Prepared By: Angela W. Wandera
Business & Quality Management Systems Consultant
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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY.......................................................................................3
2. DESCRIPTION OF PRODUCTS AND SERVICES............................................................3-4
3. TECHNOLOGY CONSIDERATIONS..........................................................................4-5
4. PRODUCT/SERVICE MARKETPLACE.......................................................................5-8
5. MARKETING STRATEGY/PRICING STRATEGY/SERVICE DELIVERY STRATEGY......................8-12
6. ORGANIZATION AND STAFFING............................................................................12-13
7. SCHEDULE......................................................................................................14-15
8. FINANCIAL PROJECTIONS....................................................................................15
9. FINDINGS & RECOMMENDATIONS........................................................................15-16
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1. EXECUTIVE SUMMARY
Abii Clinic for the last 30 years has been providing premium medical services to Uganda and is currently one of
the leading market brands. The clinic is a 24 hours facility which offers a range of services from radiology,
consultancy, Antenatal, Orthopaedics, In patient & Out patient, surgeries, pharmacy, optical, ENT, Cardiology
consultations and other related services among others.
It’s on this backdrop of professional and quality service that the company would like to launch a health medical
organisation( HMO) and a 100 bed fully equipped speciality hospital to provide quality and affordable medical
insurance premiums and health services to many of the uninsured in Uganda and East Africa.
Abii clinic intends to fill this gap through launching of an insurance scheme,(AMC) and a fully equipped
specialized 100 bed hospital(AIH) with state of the art infrastructure and highly skilled professionals, for the
population and reach out to various people of the low and middle class in both urban and rural places who don’t
have access to quality and affordable healthcare services.
Abii Clinic serves 2,000,000 lives throughout the country and maintain a reputation for superior, professional and
quality services. While the facility’s sales have grown over the past 10 years, the rate of growth has slowed
significantly. One key factor for this slowing growth rate is the limitation of lack of ample space in order to offer
more services( specialized services)
The facility is losing potential customers to competitors who provide more services and have various branches
The health industry marketplace is healthy and shows a continued growth trajectory over the next five to ten
years. Abii Clinic is in a position to capitalize in the marketplace by leveraging existing technologies, industry
best practices, and an aggressive marketing and sales campaign to ramp up the company’s growth projections
for the foreseeable future.
2. DESCRIPTION OF PRODUCTS AND SERVICES
Abii Clinic is considering a move of expansion of services to create and provide a wide platform from which
to offer more services in addition to the already existing ones. The establishment of AMC facility based with
centers and AIH will catapult the Abii brand into offering a wide range of services which will translate to an
increase in revenue and a much wider patient base
The proposed services will include the following but not limited to;
Abii Medicare has developed a wide range of health plans to cater for all types of individuals while offering
quality and affordable services. The types of health plans that will be offered are: Corporate Plans
developed for Companies, NGO’s, and Organizations etc. Family Plans developed to cater for families.
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Ante & Natal Plans, Delivery plans to cater for pregnant women, Sports Plans to cater for individuals in
sporting activity, Surgical Plans (keyhole surgery plans) Imaging services to targeted companies that are
more vulnerable to injuries such as construction sites etc.
Emergency road evacuation services through selling Ambulance covers to families, individual, Companies,
Schools, Institutions etc.
AMC plans to have fifteen outlets over a period of 3 years as facility based HMO’s offering services to its
registered clients but also attending to walk in cash patients
AMC strives to provide excellent services with quality care as its main focus to all calibers of patients. Its
main purpose is to become a one stop center for quality medical services. A wide range of specialist clinics
and services will also be available to patients for an affordable premium
It is flexible enough to tailor health plans based on the needs and budget of the clients which will make it the
most suitable health partner in Uganda and East Africa at large
3. TECHNOLOGY CONSIDERATIONS
A good technological platform will be required for Abii Medicare(AMC) & Abii International
Hospital(AIH) to have a secure integrated patient database across its outlets. Patients will be able to
access services from any AMC outlet & AIH and the medical personnel will be able to view and
update their patient history across the network. All patient data will be handled in a secure manner
with user domains and parameters to maintain confidentiality at all times
AMC & AIH will also have a secured website with the products and services offered and timely
updates done for the easy information dissemination. The ability for patient records to be securely
managed a good integrated hack proof networking and software will be required
AMC & AIH will work with a team of IT experts to ensure that information handling and
dissemination is done in a secure manner. Therefore the recommendation is to contract highly
experienced IT professionals on site but also have an external advanced IT support. It should be
noted that there are several IT professionals who offer advanced IT support systems to support the
internal IT team
Abii Medicare will aim at using high speed internet connections, web servers and the latest software available
with a solid integrated network database. An efficient network system will increase the patient turnaround time
for a simple clinic visit from 20 minutes to 10 minutes. This is geared towards efficiency and timely of services
which plays a big role in customer satisfaction
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Upgraded technological capability will be required for Abii Clinic's potential to move towards offering more
services, through it 's HMO( AMC) and specialized treatment at AIH from which many patients will be access
quality medical care
4. PRODUCT/SERVICE MARKETPLACE
A brief of Uganda’s health care system
A comprehensive review of Uganda’s Health System conducted in 2011 uncovered strengths and
weaknesses of the health system, organized around the six technical building blocks of health
system that were defined by the WHO. In summary the assessment found that whereas significant
efforts are being implemented to qualitatively and quantitatively improve health in Uganda, more
needs to be done to focus on the poor, improve engagement of the private-for-profit sector, enhance
efficiency, strengthen stakeholder coordination, improve service quality, and stimulate consumer
based advocacy for better health.
The Ministry of Health (MOH) also conducts annual health sector performance appraisals that
assess health system performance and monitor progress in delivery of the services from both public
and private service providers
There is one doctor for every 7,272 Ugandans. The related statistic is 1:36,810 for nurse/midwifery
professionals. The shortages are worse in rural areas where 80 % of the population resides, as 70
% of all doctors are practicing in urban areas. This has led to the gap and much needed services or
quality and affordable healthcare such as Abii Medicare is planning to offer through its satellite
centers across Uganda
The Company's primary target market will consist of Ugandan residents who want to access
affordable quality health care services. Currently the number of HMO’s and Insurance Companies
combined that offer medical plans in Uganda are 17 in total and are expected to offer medical
services to Uganda’s population of 35,000,000 million The current number of facility based HMO’s
are 3 in total Abii Medicare will become the 4th to enter the marketplace as a facility based HMO
About 50% of healthcare provision is delivered by public or government owned facilities and the
remaining 50% by private providers. The public sector facilities include two National Referral
Hospitals, Mulago and Butabika in Kampala, eleven Regional Referral Hospitals, 43 General
Hospitals, and 112 District Health Center IV’s, one per District. Basic services are provided in Heath
Centers III and II to provide diagnosis and maternity care, and health information is disseminated to
village households by unpaid volunteer Village Health Teams at the lowest level.
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However, the need to provide quality affordable health care services in Uganda is still wanting,
hence the desire as AMC to enter the market and offer quality affordable medical services for all
categories of people as well as be open to serve cash patients who walk in for services at any of our
centers across Uganda
It is in our interest to set up fifteen satellite centers across Uganda offering quality affordable health
care. However, we intend to start off with 5 initially and add more centers periodically
Competition
The major competitors in healthcare have been identified as follows below
Government Health Centers- Those these are spread across the Uganda, they are grappling with
lack of sufficient medical supplies, insufficient medical staff and poor facilities
Donor Funded health centers- These are majorly based in rural areas and provide basic medical
services which are leaning towards community health projects
Private Health Facilities- These own 50% of the market share in the health care industry. They
deliver medical insurance and also offer more advanced medical services using the latest
technology to those that can afford to pay for their medical bills.
The gap for the provision of affordable quality healthcare in Uganda is wanting and hence the
proposal to set up satellite facility based HMO’s through AMC where we will meet all the medical
needs from all categories of patients the low income earners to the well to do individuals
AMC will be the first of its kind to provide such services in Uganda in Urban centers and in Rural
areas. Our aim at AMC is to become the leading brand of quality affordable healthcare in Uganda
and the region with specialized services and efficiency coupled with excellent customer care
services
Market Assessment
What is the size of the market?
The number of people on healthcare insurance in Uganda is estimated to be at only 15% in Urban
areas leaving 84.4% individuals lacking healthcare insurance. Uganda has a population of 37.85
million people in total as per the population census done in 2014.
According to a demographic health survey done by Uganda Bureau of Statistics carried out in 2011.
About 1 % of women and less than 2 % of men are covered by health insurance. Urban women,
women who live in Kampala, those with secondary or higher education, and those from the
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wealthiest households are the most likely to be covered by some type of health insurance. Men
show the same pattern as women.
Our target market is corporate companies, NGO’s, schools, institutions of learning, low income
earners, middle income earners, high income earners and families. We also look forward to partner
with other players as enlisted health services providers since we are facility based HMO
How many customers are there? Who are they?
According to a demographic health survey done by Uganda Bureau of Statistics carried out in 2011.
About 1 % of women and less than 2 % of men are covered by health insurance. Urban women,
women who live in Kampala, those with secondary or higher education, and those from the
wealthiest households are the most likely to be covered by some type of health insurance. Men
show the same pattern as women.
These include corporate companies, NGO’s, schools, institutions of learning, low income earners,
middle income earners, high income earners and families
Where are they currently accessing services?
Currently there are 6 licensed HMO’s in Uganda of which only 3 are facility based They sale health
care plans and other insurance companies that also sale health care plans besides there other types
of insurance
Are the customers satisfied?
In Uganda, healthcare insurance is now added onto employee benefits hence most individuals enjoy
medical care as part of their employment package. Customers in Uganda always look for better
deals when considering healthcare options such as the quality of services the range of services and
the premium of cost of health plans
I would say that most health care providers has fallen short when it comes to delivery of services as
they quoted in their health plans and this has created a level of dissatisfaction among customers in
the industry .There is need to provide quality healthcare at affordable premiums which is why AMC
& AIH would like to fill that existing gap
How is the market segmented currently?
The current market segmentation is as follows according to the Insurance Regulatory (IRA)
Insurance Market Report 2017
HMO Business Gross Written Premium income - 2017
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No Name of
the Company
AAR Health
Services
International
Air
Ambulance
Case Medical
care
International
Medical Link
St Catherine
Clinic
Kampala
International
Medical
Centre Ltd
Total
2017 Gross
Written
Premium( $)
5,081,661
2016 Gross
Written
Premium ($)
5,943,722
Percentage
Change (%)
Market Share
2017 (%)
-14.50
36.60
7,017,004
6,358,207
10.36
50.54
921,700
747,519
23.30
6.64
580,970
485,615
19.64
4.18
255,129
191,057
33.54
1.84
27,778
13,410
107.14
0.20
13,884,242
13,739,530
1.05
100.00
HMO’s market share is
AAR
43.3%
Facility Based HMO
IAA
46.3%
Facility Based HMO
Case
5.4%
Facility Based HMO
IML
3.5%
Non-Facility HMO
St Catherine
1.4%
Kampala International Medical Centre
Non-Facility HMO
0.10%
Non- Facility HMO
5. MARKETING STRATEGY
AMC marketing efforts must be focused on the right target groups in order to yield the greatest
return on investment. In order to be successful, AMC must differentiate itself from competitors in
order to appeal to customers in the health industry. To do this, AMC will utilize its practice of
personalizing its product and services with exceptional customer care services and offer a wide
range of health care plans at affordable premiums.
Currently, the existing competitors do not currently provide a wide range of medical services at
affordable premiums. Customers will have the ability to choose from a bouquet of health care plans
with the flexibility of tailored products and services to meet the demands of every customer
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AMC will implement a customer emailing list in order to send product promotions, sales
advertisements, and other special incentives to customers who register with Abii Medicare. A
customer telephone database will also be developed in order to keep in touch with our clients
through courtesy calls after services. Additionally, AMC will offer incentives to customers who renew
their plans with us and will also offer other incentives to customers such as AMC merchandise
ranging from umbrellas, T-Shirts, Caps, Mugs, Key holders etc.
AMC will also maintain a customer database in order to determine its target customer groups and
geographical regions. AMC will research marketing intelligence providers to determine the benefits
and costs of purchasing customer information for bulk email campaigns as well.
It is important to note that AMC's marketing and sales staff will require continual training in
marketing and sales practices. This training will be contracted to a training provider as part of our
startup costs and schedule.
Pricing Strategy
The Company has designed an innovative pricing strategy that encourages customers to buy the
medical plans by offering a cocktail of plans to choose from at an affordable fee. Furthermore, the
medical plans and medical services will sell much lower than the prices of rival service providers
selling medical plans. The pricing of the medical plans was developed with actual costing and was
developed after comparing what was being offered by other competitors as well
The Company's initial marketing strategy is to sell the medical plans to the already existing clients
serviced at Abii Clinic and reach out in the marketplace
In year one, AMC has forecasted $5,000 in Sales& promotions, $5,000 for year two and $5,000 in
year three. The budget will be distributed among Corporate Events, newspapers features the health
and the Social Media. In addition, we will use a rather unique method of marketing AMC through
Corporate Social Responsibility activities.
Public Relations, in the form of press releases, medical receptions, medical bouquet cocktails,
medical camps, medical drives and newsletters, will play a vital role in future promotional activities,
sports sponsorship and other community drives.
Service Delivery Strategy
The Company intends to set up a facility based HMO that will also offer medical services to cash
patients and company patients not registered with AMC. The initial plan is to open up 15 satellite
centers in a period of 3 years but initially will start with 5 satellite centers in the first year of
operations
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The satellite centers will be located in urban towns and strategic locations across Uganda with the
main aim of offering quality and affordable healthcare for all
Each center will be managed by a Center manager and other staff as shown in the staffing structure
for the centers in this document. Each center will initially have a total of 17 employees and expand
as the needs arises
In order to be successful, AMC must differentiate itself from competitors in order to appeal to
customers in the healthcare marketplace. To do this, AMC will utilize its practice of personalizing its
product packaging which it currently offers and increase the range. Current competitors do not
necessarily provide any personalization of packaging of products. Customers will have the ability to
personalize healthcare plans according to their health needs,
AMC will implement a robust customer care system in order to maintain and create a strong bond
with its patients. Additionally, AMC will also maintain a customer database in order to determine its
target customer groups and geographical regions.
AMC will conduct research marketing intelligence providers to determine the benefits and costs of
specific products/services. Another important consideration of AMC’s marketing strategy is cost
effective. Electronic marketing communication costs are very small in comparison to direct mail
marketing which AMC currently utilizes. However, we do expect the additional revenue from online
promotions to greatly outweigh these additional electronic marketing costs.
It is important to note that AMC’s current marketing and sales staff will require training in marketing
and sales practices as well. This training will need to be contracted to a training provider as part of
our startup costs and schedule.
Sales & Promotion
The Sales & Marketing team will come up with creative strategies to market and sell AMC services
through the approved channels of marketing by the industry regulators. There are restrictions
against advertising for health providers in Uganda and hence the need to market and promote AMC
through various avenues
Sales and Promotions will done through distribution of AMC pamphlets, medical receptions, health
drives, Corporate Social Responsibility activities, first aid training, medical camps, participating in
healthcare exhibitions and presentations to corporate companies. Health newsletters, community
medical drives etc.
Why Abii Medicare?
Strengths &Weaknesses
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In terms of product strengths, Abii Medicare has many distinct advantages over the competition.
• Our Medical Plans and benefits are very attractive loaded with a wide range of benefits at
an affordable fee which many competitors lack, they charge high premiums for limited
benefits which drives many potential customers to seek for alternative health care providers.
• Unique medical plans developed to cater for all income brackets will position us to the best
choice for health care provision above all other competitors
• Abii Clinic a sister company to Abii Medicare has been operational since 1986 with success
story of being able to offer quality affordable medical services to all kinds of people ( the low
income earners to the well to do) in Uganda
• The Company's initial medical plans will be priced at much lower premiums than those of
major competitors as way of infiltrating the market with quality and affordable medical plans
• Low operational costs - most competitors offer employ too many people with duplicate roles
in most cases which raises up their operational costs at large.
• Plans to operate our own Pharmacy and other services will minimize our operational costs
whereby we are in control of the pricing for medical supplies and drugs which will be
procuring at factory prices direct from the pharmaceutical factories
• The above points are considered distinct advantages, and thus separates our product and
services from other competitors.
Corporate Weakness
Abii Medicare’s major weakness is financial. Moreover, our financial resources does not match
those of major competitors. Upon receiving funding, the company will ably move forward and
compete within the health industry in Uganda as a new entrant
Social & Economic Impact
Abii Medicare will have a positive impact on the economy of Uganda through job creation, salaries
of employees, sourcing of local suppliers, through its affordable health plans many individuals will
have access to quality health care which will improve their well-being as a whole. Through
Corporate Social Responsibility activities Abii Medicare will have a chance to change the
disadvantaged lives in the community
Health education and health drives Abii Medicare will touch and change lives who will have access
to health camps, health awareness campaign to kick out communicable diseases among others
Limits and constraints
Abii Medicare’s major weakness is financial. Our financial resources does not match those of major
competitors. Once funding for this project is secured, the company has already developed several
objectives and strategies that will allow us to successfully compete and expand as projected over
the next five years
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6. ORGANIZATION AND STAFFING
AMC's success will largely depend on the core team which is comprised of the following positions mentioned
below coupled with experience and skills. This team will lead AMC & AIH to realize impeccable growth and
profits
Staffing Position : Group CEO – this full time position develop and maintain the Mission, Vision and
Strategies of the Company. Govern product development, production, marketing, finance, and
customer service. Chairs all management team meetings, represents the company in this capacity.
Executes and approves executive decisions in liaison with the board of directors Approves all
financial obligations and arrangements. Seek future opportunities and strategic alliances with other
companies and organizations. This person will report to the board and Directors and will work at
AMC headquarters.
Staffing Position: Sales Marketing Manager – this full time position will lead marketing staff in
identifying target customer groups/markets and conducting advertising/marketing efforts to
maximize traffic to AMCs centers and AIH. This person will report to AMC’s CEO and will work at
AMC headquarters.
Staffing Position: Group Finance Manager- this is a full time position will supervise the Finance team
and is responsible for the preparation of financial forecasts and financial reports, budget plans,
overseeing the debt collection and claims department, cash flow projections as well as pro-forma
financial statements. Evaluate the requirements for external financing from the commencement of
the organization throughout its growth phase. This person will report to AMC’s CEO and will work at
AMC headquarters.
Staffing Position:- Group Operations Manager- will be responsible for day to day operations,
managing the organization’s HR, helping and creating organizational and program budgets in
collaboration with the CEO, Finance Manager, Sales & Marketing Manager ensuring organizational
effectiveness by providing leadership for the organizations financial and operations functions.
Working with the management team, the position also contributes to the development and
implementation of the Company’s strategies, policies and practices.
Coordinate, manage and monitor the workings of various departments in the Company. Prepare and
control operational budgets
Improve processes and policies in support of organizational goals. Formulate and implement.
Departmental and company policies and procedures to maximize output. Monitor adherence to
rules, regulations and procedures. Monitor and evaluate performance in partnership with the Human
Resource team. Monitor, manage and improve the efficiency of support services such as IT, HR,
Accounts and Finance, Procurement. Facilitate coordination and communication between support
functions. This person will report to AMC’s CEO and will work at AMC headquarters
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Staffing Position: Group Human Resource Manager- will supervise all staff and develop policy,
direct and coordinate human resources activities, such as employment, compensation, labor
relations, benefits, training, and employee services. Provides management direction and counseling.
Supervises clerical assistant and temporary staffing as needed. will also oversee the analysis,
maintenance, and communication of records required by law or local governing bodies, or other
departments in the organization. Identifies legal requirements and government reporting regulations
affecting human resources functions and ensures policies, procedures, and reporting are in
compliance. Studies legislation, arbitration decisions, and collective bargaining contracts to assess
industry trends. This person will report to AMC’s CEO and will work at AMC headquarters.
Staffing Position- Medical Director- will provide leadership and medical expertise in the delivery of
medical services offered at all AMC Centres The Medical Director will also act as a medical
resource to the company as a whole and particularly supervise the clinical side of business
Work closely and cooperatively with all the AMC satellite Provide medical and input to in the
development new products in liaison with the Sales & Marketing team
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7. SCHEDULE
The AMC sales & marketing campaign is expected to take 12 months from project approval this includes the
launch of the AMC HMO, HMO Centers & and the construction of AIH . The following is a high level
schedule of some significant milestones for this initiative:
Jan 1, 2019 Initiate Project registration process & Completion of AMC headquarters, recruitment of staff,
orientation of staff, product/services publication of marketing material
February 1, 2019: Launch the AMC products and services, setting up of systems Equipping and setting up of
1 AMC center groundbreaking of the AIH construction
March 1, 2019: Construction of AIH
April 1, 2019: Equipping and setting up of the 2 AMC center
June 1, 2019: Equipping and setting up of the 3 AMC center
July 2, 2019: Equipping and setting up of the 4 AMC center
Aug 1, 2019: Equipping and setting up of the 5 AMC center
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Upon approval of this project a detailed schedule will be created by the assigned project team to include all
tasks and deliverables.
8. FINANCIAL PROJECTIONS
The financial projections for the addition of AMC highlighted in the table below. These figures account for
projected sales, additional staffing requirements, material, contract support for IT and training needs, and
other costs.
The assumptions for these projections are as follows:
• The sales projections are achieved through aggressive marketing
• All milestones are performed in accordance with the schedule
• All transactions are closed yearly with no carry-over to subsequent years
7 Years Sales Annual forecast
Annual
Forecast
AMC Health
Plans
AMC Center
Sales
Gross Revenue
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
$ 805,999
$ 1,479,452
$ 2,958,904
$ 4,931,507
$ 7,397,260
$ 10,356,164
$ 13,150,685
$ 2,027,757
$ 2,840,279
$ 3,668,213
$ 4,483,371
$ 6,113,687
$ 6,144,256
$ 6,174,977
$ 2,833,756
$ 4,319,731
$6,627,117
$9,414,878
$13,510,947
$ 16,500,420
$19,325,662
Required Financing
The required amount of funding to enter this market and feasibility of raising capital is $ 15,000,000
9. FINDINGS AND RECOMMENDATIONS
Based on the information presented in this feasibility study, it is recommended that AMC approves the sales
initiative and begins project initiation. The findings of this feasibility study show that this initiative will be
highly beneficial to the organization and has a high probability of success. Key findings are as follows:
Technology:
 Will utilize existing technology which lowers project risk
 Ecommerce infrastructure will be contracted out to vendor which allows AMC to share risk
 Once in place this technology is simple to operate and maintain for a relatively low cost
Marketing:
 This initiative will allow AMC to reach large number of target groups electronically at a low cost
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


AMC can expand customer base beyond geographic areas where AMC centers are currently
located
The marketplace healthcare sales is in a steady state of growth
AMC is able to differentiate itself from its competitors and will utilize incentive programs to target
new customers
Organizational:
 Minimal increases to staffing are required with no changes to organizational structure, following the
lean staffing model
 Recruitment of highly skilled human resource and the use of advanced technology will greatly add
value
Financial:
 Breakeven point occurs early in the third year of operation
 Seven year projections show sales accounting for 45% of total sales
 AMC will be in position to capture greater market share by enlarging percentage of the market share
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