Saudi German Health inks trademark, operation deals with Sobhi Batterjee Hospital

One of Saudi German Health's hospitals

Middle East Healthcare Co.’s (Saudi German Health) board of directors approved a contract allowing Sobhi Abdul Jalil Batterjee Medical Hospital in Jeddah, a related party, to use the "Saudi German Hospital" name and trademark.

In a statement to Tadawul, the company said the 10-year contract, effective from the signing date, entitles Saudi German Health to receive 10% of the hospital’s monthly net profit. The deal poses no risks to the company’s profits or assets, it added.

The board also approved a contract for supervising the preparation and qualification for Sobhi Batterjee Hospital’s pre-opening phase. This contract, valued at SAR 3.14 million, will last six months from the signing date.

Additionally, the board ratified a five-year management and operation contract for Sobhi Batterjee Hospital, starting from the hospital’s official handover date. Saudi German Health will receive 3% of the hospital’s net revenue after deducting rejections.

The company noted it contributed SAR 70 million, representing 23.33% of the project’s SAR 300 million total capital, following the approval of its ordinary general assembly meeting on July 16, 2022.

These initiatives align with Saudi German Health’s strategy to expand its operations, enhance its market position in healthcare services, and boost its revenues, which are expected to positively impact its financial results in the coming years.

This initiative aims to achieve the company's strategy regarding expansion plans and to enhance its market position in providing healthcare services, thereby supporting the company's revenues and positively reflecting on its financial statements in the coming years, the Saudi-listed firm further indicated.

The hospital’s building will consist of 70 outpatient clinics covering all medical specialties, in addition to a patient admission department, radiology, laboratories, and all other supporting departments. According to the initial license from the Ministry of Health, the hospital's bed capacity is 200 beds.

Saudi German Health will announce any developments regarding the project and the positive financial impact of these agreements in a timely manner, the company noted.