For the past eight years, Health Care Dynamics (HCD) has been one of Getinge’s closest partners in the Middle East. The company was originally established in 2008 under the Al Massar Group, as a strategic business partner for the marketing, distribution and after-sales service for Maquet products. Today, it is a major player in a diversified healthcare services environment in the State of Kuwait. HCD’s customer portfolio includes the Kuwait Ministries of Health and Defense, Kuwait universities and oil companies, and other private sector companies.
Sebastien Blanche, Global Head of Export & ProjectFinance at Getinge Financial Services:
“At Getinge Financial Services, we believe in a joint effort by responding to customer needs through collaborative innovation. From start to finish, we operate as a support function to provide our customers with solutions that best fit their needs. We don’t only act as an enabler to help our customers gain access to the most up-to-date technology but we also support our distributors in entering into new business models.˝
The healthcare sector in Kuwait is moving quickly. In 2016, the government introduced plans to overhaul the national healthcare system, with over USD 12 bn worth of investment in this sector as part of the "New Kuwait" development plan. This has led to a fierce increase in competition in the nation’s healthcare sector. At the same time, a national budget deficit means that Kuwait’s healthcare providers are struggling with budget constraints.
HCD wanted to bid for a government contract to replace all of the Ministry of Health’s ventilators with the latest models. This contract, however, was a so-called Free Of Charge (FOC) pay-per-consumables contract, in which payment for the ventilators is issued gradually with each consumables order. HCD was therefore looking for a financial arrangement to bridge this delay in payment. As a first financed transaction, HCD approached Getinge to extend payment terms for a sale of USD 2.3 m.
Following nearly a decade of first-rate business relations, Getinge’s main priority was to continue and develop this long-standing and trusted partnership with HCD. Growing the business meant addressing the challenges. For HCD to remain a major player, they needed to be in a position to continue providing their end-customers with cutting edge medical technology, while staying flexible and cost-effective.
Michael Sibert, Senior Director Finance MEA, explains: “We naturally want to support our distributors and enable them to offer the best products and solutions that are also viable from a cash flow perspective. In Kuwait, the Getinge Middle East Sales and Service Unit worked with Getinge Financial Services to develop a tailor-made solution that enabled HCD to offer the Ministry of Health premium ventilation solution associated to a payment model that would bring additional value and more control over their cash flow.”
Getinge Financial Services was able to offer HCD an ECA-covered buyer credit. By combining state-of-the-art equipment and technology with smart finance, HCD was able to let their end-customers tap into tomorrow’s equipment and secure their place in the competitive environment of the Kuwait healthcare sector.
Customer: Health Care Dynamics
Amount: USD 2.3 m
Tenor: 5 years’ financing with quarterly payments
Equipment: Diverse medical equipment (ventilators and accessories)
Financing solution: ECA-covered buyer credit
With a deep understanding of the customer’s needs and country-specifics, Getinge Financial Services and the sales teams in the region worked together closely to bring about this outstanding result for the customer. Getinge was able to offer a financing solution allowing good risk mitigation and fast and affordable access to funds with attractive terms and conditions. In turn, HCD was able to fulfill the government contract, with positive effects not only for the company, but for the Kuwait healthcare system as a whole.