How to Start a Private Hospital in Nigeria

Nigeria’s healthcare sector is expanding rapidly, driven by population growth, rising incomes and increasing health awareness. However, there remains a huge shortage of quality, affordable hospitals to serve the country’s needs.

This presents a major business opportunity for entrepreneurial medical professionals, investors and healthcare corporations to establish successful private hospitals with strong profit potential.

Establishing and running of hospitals in Nigeria are stringently regulated by the government agencies. The following are some measures and requirements for setting up a clinic in Nigeria:

Location: Like any other institution, the location of your Hospital goes a long way in guaranteeing success of the hospital. The most significant factor you have to examine is accessibility. When setting up a practice in Nigeria, finding a strategic location is important. This means that your hospital must be readily approachable to the greater population, especially during emergencies.

Finance plays an important role when starting up a hospital considering the fact that the kind of equipment you have in mind won’t come cheap.

You can either choose to construct your own building or find a completed/incomplete building and then renovate it or remodel it as required. You can also have the option of leasing an already existing building. Your hospital should have a reception desk and a most accommodating receptionist should be hired to man it. Another station to be built inside your building is the GP’s office. It should be spacious, large and comfortable enough to for you and people to stay. Windows and doors must be installed strategically. Unnecessary appliances and objects must be avoided. A doctor can work well with a nice environment.

Make sure that pieces of equipment are up-to-date and safe. You can negotiate or coordinate with suppliers of facilities and other hospitals need.

For any hospital to meet the grade, it must be up to date in having the latest technology in terms of imaging tools and lab equipment, as the society becomes more sophisticated, the demand for the best healthcare service for the Nigerian populace increases.

Management and Human Resources

This is one of the areas which make or break hospitals in Nigeria. Coordinating with the organizations in your area especially with the medical associations will give you more knowledge on how you can run your business.

Employ the Right Staff

Professionals that are well-trained, legally licensed and knowledgeable should be hired and ensuring that they come with a clean background. Maintaining the reputation of hospitals is very important.

The value of retaining the right staff cannot be overemphasized. The regulating organizations expect that only qualified professionals are hired to operate in your Hospital. Scrutinizing the documents of doctors and nurses to guarantee you do not break the law controlling health establishments. Hiring a hospital administrator to provide the day to day administrative duties is also advisable.

Equipment

It is helpful to concentrate on the essential facilities that can permit the Hospital to begin and also manage uncomplicated medical cases for a start. Some of the primary concerns include;

Hospital Cards: for patient registration.

Furniture

Beds: The quantity depends on the scope of your Hospital.

Vital Signs Devices: Accessories such as stethoscope, Sphygmomanometer (for blood pressure) and scales (for weight).

Ventilators: To maintain the Hospital temperature.

Telephone: An intercom arrangement to facilitate consultation inside the premises.

Standby Generator.

Medical Instruments: Tools for simple operations and delivery.

Market Demand

Profitability: Hospitals make money through consultancy charges, the bills they hand out to patients at the end of their stay in the hospitals and possibly the additional amount they add to drugs sold in their own pharmacies.

“For example, the laboratory indicated that I have typhoid and the doctor made prescriptions. Among the drugs is the Nigerian brand of Amoxicillin capsules which they sold N500 for two cards at the pharmacy. But I bought this same two cards of Amoxicillin for N200 at a pharmacy outside the hospital,” he narrated.

Patients who stay for a shorter period of time generate more money for the hospital. This explains why hospitals are often anxious to get the patient fixed and discharged quickly.

“Hospitals make money from the patient load. Even small charges add up if you have a patient base of a few thousands. The private hospitals that make serious money look after their patients well and encourage repeat patronage. Especially in cases of women’s healthcare, the sharp hospital could end up looking after generations in the same family.

Surgical outfits of hospitals appear to be more profitable than strictly medical hospitals and the higher earning hospitals are those involved with surgical operations such as taking deliveries and operating on pregnant women as they are easy to set up and do not require a high level of skill in the management of the patient.

Building a hospital is more of a staff stock up than a building structure itself. Conducting a research of ailments that the doctors in Nigeria lack expertise in, and working to provide the missing service can go a long way in helping increase the clientele, it is true that a lot of people flown abroad for ‘proper’ medical care, if you can bring ‘proper’ medical care home, and breach that gap of flying people out of the country, then you’re on your way to attaining a world class hospital.

With sound leadership, top talent, customer service focus and continual improvements, your hospital can gain a reputation as patients’ trusted provider while delivering shareholder returns through social impact.

Nigeria’s healthcare system presents numerous opportunities for entrepreneurs to create profitable businesses. By investing in private hospitals, medical equipment sales, pharmaceuticals, medical supplies, health insurance, telemedicine, and medical tourism, entrepreneurs can leverage Nigeria’s growing healthcare industry to create successful businesses. It is essential to conduct thorough research, identify market demand, and make informed investment decisions to maximize profitability.

Get our training guide on how to set up a private hospital in Nigeria. This comprehensive guide covers all the steps involved in starting and running a profitable private hospital in Nigeria, from initial planning to driving growth long term. Follow this strategic advice to build a reputable healthcare brand delivering exceptional patient care. 

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