Mayo invests in Abu Dhabi hospital venture
Clinic puts $50 million into 741-bed hospital in the United Arab Emirates.
Mayo Clinic recently reported that it invested $50 million in a 741-bed hospital opening in the United Arab Emirates.
The Sheikh Shakhbout Medical City in Abu Dhabi is a joint venture between Mayo Clinic and the Abu Dhabi Health Services Co. This is the first Mayo Clinic hospital project outside of the U.S., although it does also have a "boutique clinic" in London.
While the Abu Dhabi project was originally announced in November , Mayo Clinic released more details about it on Thursday in an unaudited financial report for the first half of 2020.
The report states that Mayo Clinic paid $50 million in cash “and other intangibles” in February to fund “a 25 percent equity position” in the hospital that started seeing patients in late 2019.
In addition to the joint venture agreement, Mayo Clinic "entered into a hospital expertise agreement, brand license agreement, and research contribution agreement with SSMC, all executed Nov. 25, 2019.”
The venture has “an initial commitment period” of 20 years, which could be extended by 10 years.
When the project was announced in November, Mayo Clinic CEO Gianrico Farrugia said “this is a collaboration and a unique partnership in the region, with Mayo Clinic physicians, nurses, administrators and others working side-by-side with colleagues from the Abu Dhabi Health Services Co.”
The value of initial equity of the venture is being evaluated, according to Mayo Clinic’s report this week.
“Any difference between the value of the Clinic’s cash investment and the value of the initial equity in the joint venture is not anticipated to be significant and will create a deferred gain to be recognized over time,” according to Mayo Clinic. “The clinic has a $150 million conditional pledge from the joint venture. The brand license and hospital expertise agreements are effective January 2021.”
While Mayo Clinic International president G. Anton Decker stated in November that Sheikh Shakhbout Medical City will "provide hope and healing for those who need it most,” some health care experts were critical of the move.
Sheikh Shakhbout Medical City opens in Abu Dhabi in Nov. 2019:
Dr. Naser Ammash, CEO Sheikh Shakhbout Medical City speaking to Arab Health TV in 2020:
In this 2019 video, Dr. Farrugia explains why this joint venture fits with Mayo's mission:
Phased opening timeline at Sheikh Shakhbout Medical City:
Phase 1 – Nov 3, 2019:
- Adult Gen. Cardiology clinic
- Adult Neurology clinic
- Gastroenterology clinic
- Ophthalmology clinic
- ENT clinic
Phase 2 – Nov 17, 2019:
- Urology clinic
- General Surgery clinic
- Infectious Disease clinic
- Nephrology clinic
- Internal Medicine (General) clinic
- Pulmonary / Sleep Disorder clinic
- Adult Endocrinology / Diabetes clinic
Phase 3 & 4 – Dec 15, 2019:
- Oral and Maxillofacial clinic
- Plastic Surgery clinic
- Neurosurgery and Spine clinic
- Orthopedic Surgery clinic
- Oncology clinic
- Hematology clinic
- Rheumatology clinic
- Physical medicine &Rehabilitation
- Pediatric Cardiology clinic
- Pediatric Surgery clinic
- Pediatric Endocrinology clinic
- Pediatric Neurology clinic
- Burns clinic
- General Pediatrics clinic
- Pediatric Rheumatology clinic
- Dermatology clinic
- Vascular surgery clinic
- Podiatry clinic
- Dietetics services
Phase 5 & 6 – Jan 9, 2020 (Inpatient):
- Outpatient Clinics
- Adult ICU
- Peds ICU
- Burn Unit NICU
- labour and delivery
- Peds Ward
- Cath Lab
- Emergency Department
- Gynecologic Oncology
Architect Magazine wrote about Cheikh Khalifa Medical City in 2012 . The write-up includes 18 photos of the campus.
The Advisory Board writes "Why Mayo Clinic is opening a 741-bed hospital in Abu Dhabi" in 2019.
A remarkable medical story: Abu Dhabi doctors save Emirati girl born with almost no intestines .