Investment Opportunities Map

Jordan Investment Board

Arabized Hospital Management System

IT Sector

Project Profile

MMIS Management Consultants

PO Box 7976 Amman 11118 - Jordan Tel: 962 6 4649040 Fax: 962 6 4649041 e-mail:info@mmis.net http://www.mmis.net

December 2004

Jordan Investment Board / Investment Opportunities Map / Arabized Hospital Management System Project (IT Sector) P.1

The Project at a Glance Project Name Service Capacity Manpower Total Investment Cost Initial Working Capital Internal Rate of Return (IRR) Breakeven Point Arabized Hospital Management System 14 Participants 28 US $ 506 ,000 US $ 71 ,000 24.9 % 65 % of capacity

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Arabized Hospital Management System Project (AHMS)

1. Introduction
1.1 Project Description
The availability of Arabized Hospital Management System is essential for Jordan and most of the Arab countries as it help hospital managements to manage more effectively in the local language The project will provide the following services to hospital managements:

Arabic screens designed with the possibility to enter English data. Storing data in Arabic mode. Managing the following modules : - Accident & Emergency. - In patient Management. - Out patient Management. - Laboratory Management. - Nurses Personnel Information. - Pharmacy management. - Radiology Management. - Order Entry and Result Reporting. - Financial System. - Insurance Contracts management. - Procurement management & Inventory Control. - Blood Bank Management.

The system will be integrated to support decision-making.

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1.2 Potential Clients:

Hospitals in Jordan Hospitals in The Arab World

2. Market Aspects
2.1 Local Demand
In 2003, the total number of hospitals in Jordan was 97. Table (1) illustrates hospital numbers according to health sector.

Table (1) No. of hospitals according to health sector in Jordan ( 2003 ) Sector Ministry of Health Royal Medical Services Jordan University Hospital King Abdulla Hospital Private Total Source: Ministry of Health Number 29 10 1 1 56 97

2.2 Arab Countries Demand

All hospitals in the Arab countries need the service of this project.

2.3 Competition
Most hospitals have mainly English Hospital Management Systems (HMS). Few of them accept Arabic data, some others are bilingual. This project will be unique as it will be totally and originally Arabized, and will therefore strongly compete against other systems.

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2.4 Forecasted Project Capacity.

The following considerations are taken into account:

Most of the hospitals in Jordan prefer Arabized system in their management. Hospitals in the Arab countries prefer HMS in their native language to facilitate better communication with their clients and staff. Governments in the Arab countries prefer results in Arabic from information systems.

Therefore, it is projected that the project annual sales will reach 14 systems in the third year of operations .The number of sold systems will increase annually as follows:

Table (2) Sales volume Development Year Unit 1 7 2 10 3+ 14

2.5 Estimated Project Revenues

Software projects have the following special features, which the investor should take into account: Software products have a universal market and they can be implemented in different countries. Software products are subject to changes and modifications to cope with information technology changes and updates. Software applications maintenance fees after the warranting period are estimated at about 15 % of sales price. Manpower is not limited to the development of one certain product, they can work on other systems concurrently, so additional income can be generated. The proposed sales price of the system software is US$ 50,000/unit.

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Table (3) Projected Revenues Year US$ 1 350,000 2 525,000 3 700,000

3. Technical Aspects
3.1 Project Location
The project location is proposed to be in Amman province due to the following factors:

Amman province is a central location with respect to most and major hospitals, which will help in the system development process. Availability of different facilities and services needed for the project.

3.2 Manpower
Management : 4 Skilled Technical Staff : 20 Hospital Management Expert : 1 Unskilled Staff : 3

3.3 Building
The building area required for the project is about 600 m2 office type to be rented against annual fees.

3.4 Inputs & Consumables

Stationary and IT equipment consumables.

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4. Financial Aspects
4.1 Project Investment Cost

Table (4) Total Investment Cost Item Equipment & Software Development Transport means Sub- Total ( Fixed Assets ) Contingency, 10% Pre Operating Expenses Initial Working Capital Total Investment Cost US $ 325000 25000 350000 35000 50000 71000 506000

4.2 Financial Indicators

ROI = 26.5 % IRR = 24.9 % NPV = 387 Thousand US$ BEP = 65 % of capacity Payback Period = 5 Years.