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HBI Exclusive interview: NMC Health’s acting CEO Michael Davis on the future of the business

NMC acting CEO Michael Davis speaks publicly for the first time about the future of under-fire NMC Health. In this exclusive interview, we ask about a possible sale of all or part of the business, and whether and how NMC might recover from its present position.

HBI: Michael, thank you for agreeing to talk to us.

Michael Davis (MD): Thank you for the opportunity to speak, albeit briefly, with Healthcare Business International. I have not made any official public comment since assuming the role of Acting CEO, but given our past relationship with HBI the team felt like it was the right time to provide some comment, particularly to an industry publication that understands the nuances and challenges of managing a healthcare business of our size and the added pressures of the issues the company is facing during a global pandemic.

HBI: What plans are in place to ensure continuity of care for patients at this vital time. How is NMC able (financially) to stay open, and what is the contingency plan to protect patients against closure? What support has been promised, and by whom, to ensure the vital services provided by NMC continue?

MD: Coming out of the past three months of the COVID battle on top of our financial crisis, we have done everything we can to make sure that the people at the bedside are not having to contend with the issues the company is facing at the holding level.  While NMC’s financial position is challenging, the core underlying business remains strong and our doctors, nurses and other clinical staff continue to deliver high-quality healthcare to patients around the world. Because of the importance of NMC to the healthcare ecosystem particularly in the UAE, but also beyond, many of our stakeholders have continued to support the business and are key partners with us in our recovery process.

HBI: Is there any prospect of NMC remaining a viable entity in its own right – can it be saved and is a plan being worked on? I’m mindful the administrators have said dissolution or liquidation appear to be the only options but I think I read an email suggesting staff had been told a plan to retain NMC was being worked on?

MD: We are currently in the process of developing our three-year business plan. I have to stress again that the core underlying business is operationally solid. We have diversified revenue streams generated from serving a wide, loyal customer base and the business continues to care for patients in the Middle East, Europe, the UK and the Americas.  A range of options are being considered to help protect the future of the core business with the aim to continue to operate in a safe, effective, and profitable manner for the foreseeable future.

HBI: Could a sell off of part of the business (Fakih IVF, ProVita) enable the core to continue? Presumably there has been interest in buying parts of the business from interested parties.  What stage is any potential sell off at? What is formally, currently, up for sale – everything? And what stage are such sales at? There have been reports on the imminent auction of the fertility business, for example, and the administrators have reportedly invited bids for the distribution business?

MD: Of course there is significant interest in all of our NMC assets and particularly our subspecialty businesses.  Our priority right now is to stabilize the business and ensure continuity of care at all of our facilities. To support these efforts, we will explore all options for any businesses that are not considered core to delivering this, but primarily those businesses outside of the UAE.

HBI: Given how complicated the debt structure is, is there any bar on NMC selling off assets due to this uncertainty? Can NMC be certain assets would be transferred free from debt.

MD: The sale of any of the NMC business is by no means certain.  We have worked hard to grow our businesses and we are very proud of each and every one of them.

HBI: Is there any further clarity on the true level of NMC’s debt? Is there a timescale involved for the resolution of this?

MD: Investigations are currently underway so I am not able to comment at this time.

We would welcome your thoughts on this story. Email your views to David Farbrother or call 0207 183 3779.