NIGERIA— Equipment-as-a-Service (EASE), a subsidiary of African Asset Finance Company (AAFC) has expanded its EASE Healthcare program to Nigeria and signed up its first client, HTS Diagnostic Centre.
EASE will enable HTS to pay for the installation and use of a new Siemens Magnetom Free.Star magnetic resonance imaging (MRI) scanner from the cash flows generated by using the equipment.
By providing “equipment-as-a-service,” the EASE Healthcare program is supporting medical organizations like HTS in delivering care to patients by providing access to medical technology.
The EASE Healthcare program contends that it will support medical organizations across Africa in delivering the highest possible standard of health providers to their patients.
Kanyinsola Oyeyinka, Vice President of Healthcare at AAFC and Head of the EASE Healthcare program across Africa said, “We are thrilled to bring the latest low-helium MRI technology to a promising diagnostic center in Lagos, Nigeria.”
Oyenyinka added that the Magnetom Free.Star MRI scanner promises higher quality imaging and greater energy savings and HTS will be well-positioned to deliver the highest standard of care to its patients.
On the other hand, Imraan Soomra, AAFC COO noted that the EASE healthcare program was a significant element of the wider EASE initiative, and it will make quality medical infrastructure more readily accessible for AAFC customers.
Dr. Hakeem Badmus, HTS CEO and founder added that his organization believes that EASE Healthcare pay-per-use model will be a stepping stone towards more opportunities for HTS to expand the availability of state-of-the-art diagnostic equipment for patients across Nigeria.
Dr. Badmus noted, “We’re able to access the latest technology from Siemens Healthineers that will allow us to offer the highest quality images and reliable service to all our clients. This new scanner will support our goal to be a market leader in providing quality diagnostic services in Lagos state.”
Since its establishment in 2019, HTS has made its name as an orthopedic specialist hospital, performing more than 500 surgical procedures since opening its doors.
The new diagnostic center will be able to offer MRI services to HTS’ patient population in Lagos.
Mustapha Afinowi, senior business development manager in Nigeria for EASE said, “Our pay-per-use model will ensure that HTS is not only able to access the highest quality equipment but also benefit from continuous maintenance, operator training, and ongoing support.”
Dr. Bernt Bieber, senior vice president of Siemens Healthineers acknowledged that EASE Healthcare aligned with Siemens Healthineer’s purpose of making healthcare available to everyone, no matter where they live, and could meaningfully change the way healthcare is administered and accessed amid growing demand in Africa.
Dr. Bieber said, “EASE provides the customer an alternative to investing in the equipment outright with flexible terms and with the possibility to pay in local currency… We are excited that this great program is now also available in Nigeria.”
Pay-per-use model in healthcare
The International Finance Corporation (IFC) notes that small- and medium-sized healthcare companies in East and West Africa often face difficulties when trying to access financing for the purchase or lease of equipment.
Additionally, financing may not be available, or the terms may not be appropriate for the company.
At the same time, equipment manufacturers may be unfamiliar with the market and unsure about the financing risk, limiting their ability to sell equipment in these countries.
IFC’S Africa Medical Equipment Facility is designed to bridge the gap between healthcare businesses seeking medical equipment and financial institutions and equipment manufacturers.
The organization also notes that it’s a risk-sharing facility, developed through partner banks, which will provide healthcare businesses with the necessary financing to acquire advanced equipment from manufacturers that have signed on to the facility.
IFC expects the facility to provide a total of US$300 million in financing.
For manufacturers, the risk-sharing facility offers the opportunity to improve their clients’ access to financing for needed equipment sales in what is a fragmented market.
Ilara Health is using a similar pay-per-use model to equip small healthcare providers with lifesaving and essential diagnostic tools to improve the quality of medical care in Sub-Saharan Africa.
A key problem the model aims to solve for these clinics is the lack of accessibility to traditional financing typically used by SMEs to support their growth.
The clinics are then able to develop their businesses and offer quality healthcare through revenue-generating diagnostic assets.
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