Deep-rooted passion and innovation are the central hallmarks of successful entrepreneurs. Dr. K.K Gakombe, the founder and Chief Executive Officer of Metropolitan hospital has both. Thirty years ago, he dared to dream.
After graduating with a Bachelor of Medicine and Bachelor of Surgery (MBChB) degree from the University of Nairobi, Dr.Gakombe nosed a gap in the health sector; public hospitals were congested and overcrowded, while the few private hospitals were too expensive and out of reach for the growing middle class.
Together with eight like-minded professionals, they teamed up to find a working solution. Their concept revolved around a modern hospital that could bridge the healthcare access gap for the middle class by providing quality and affordable healthcare.
160-bed capacity level five hospital
The original idea was to launch a medical plaza in Nairobi’s Upperhill.
“Before we could set up in Upperhill, we asked ourselves who we really wanted to serve. Our client base comprised the middle class and Buruburu estate, which was the largest middle class estate in the city of Nairobi. We decided to build a hospital on five acres of land in Buruburu, where it stands to date.”
Thirty years later, their small seed has grown into a 160-bed capacity level five hospital, serving millions of patients not only from the Eastlands area but also in Nairobi and its neighboring counties.
Besides, the hospital has morphed into the most equipped Hospital in Eastlands Nairobi, with an Ultra-modern Doctor’s Plaza, a state-of-the-art Accident & Emergency unit capable of handling all emergencies, as well as modern wards.
From Intensive Care units (ICUs), Neonatal Intensive Care Unit(NICU), theatres, a state-of-the-art maternity wing to a Renal unit and an array of specialist clinics, the hospital boasts of having some of the best medical facilities in the country.
In 2017, the founders partnered with a private equity investor that led to a merger with Ladnan hospital. The equity fund has since matured and the hospital was able to buy itself back, and it’s now majorly owned by Kenyan shareholders.
Mega growth
To cap the hospital’s mega growth and transformation is their Information Technology (I. T) system that has digitized the facility’s processes, improved profitability and enhanced patient experience from the time they walk in to the time they leave the hospital. The system, Dr. Gakombe says, is arguably one of their biggest milestones.
“Healthcare runs as an ecosystem. The system has digitized all our processes, from Finance, Human Resources, Triage and Admissions to bringing together healthcare workers, regulators, medicine distributors, payers, and patients, everything runs fluently.”
Intersection between healthcare and technology
The beauty of it all, says Dr. Gakombe, is the fact that the system has a follow-up mechanism for patients, and often reminds them to take their drugs as prescribed, or their next visit. “Healthcare has gone digital. The future is digital,” he says as he explains the intersection between technology and healthcare.
For the three decades it has been in operation, The Metropolitan Hospital has made its name as a family-friendly, cost-effective medical facility offering high-quality services. It’s for this reason that the facility has gained accolades locally and internationally, joining a small clique of local hospitals with international accreditation.
It’s accredited by the Council for Health Service Accreditation (COHSASA) for maintaining quality standards. It’s also accredited by SafeCare, an internationally-accredited quality assessment and improvement program. .
Their modern laboratory is billed as class F, the highest level any lab can attain in a clinical set-up, and is certified by HUQAS, an external quality assurance accreditation for medical labs.
Dr. Gakombe understands that the entrepreneurial journey is usually fraught with obstacles, failures, and setbacks, having encountered this first-hand. However, successful entrepreneurs like him, possess the resilience to bounce back from challenges.
Raising the required capital
For him and his team, getting to the top echelons of entrepreneurship has not been a walk in the park. They have had their highs and lows, but failing was never an option.
The first obstacle was raising the necessary capital to launch a fully fledged hospital. “Many people wrote us off because we were young and unqualified to handle such a big project.” The founders didn’t find any luck when they approached the Capital Markets Authority in a bid to raise capital. However, one of the very first people who believed in the idea was Ancrum Evans, a British national (now deceased).
“The biggest investor was the late Ancrum Evans who believed in me as I had worked as his investment manager for 3 years during my medical training and internship”,
Dr. Gakombe and his group of professionals decided to raise seed capital by selling shares of Kshs12500 each to 500 people, and borrowing a further Kshs10 million from a local bank.
After launching the hospital in Buruburu Estate and operating it for several years, he and his team then worked on an expansion drive which died out because of lack of enough capital to grow. “At the same time, following the liberalization of the Dollar in the early 2000s, banks had raised loan interests to record highs of 30% and above, making bank loans expensive and out of reach for start-ups in the healthcare sector,” says the doctor who also holds an MBA in Strategic Management. He adds that their breakthrough came after the 2002 General Elections.
“The cost of money went down, the shilling stabilized, and the economy was on an upward trajectory.” With a booming economy, it was prudent for them to import medical equipment directly from abroad.
Changing times
Unlike then, when capital to start and scale was hard to come by, Dr. Gakombe says that times have really changed, and healthcare entrepreneurs have lots of options as far as access to capital goes.
“Unlike before, banks are willing to lend to the private healthcare sector,” says the doctor, adding that private equity investors are now available and ready to fund private hospitals directly.”
At the same time, he says, it’s easier now to raise capital through the Capital markets Authority compared to when they were launching the health facility.
He adds that by joining the Ibuka Program, which was launched in late 2018 with the aim of preparing micro, small and medium-sized companies at the Nairobi Securities Exchange, the hospital can potentially raise funds for its expansion.
Expansion drive
With investor capital flowing, the management of Metropolitan hospital embarked on an expansion blitz in 2013, eager to upgrade the physical infrastructure as well as the scope of specialized care. It worked. Since then, the hospital has grown by leaps and bounds.
Today, the hospital boasts a number of specialist clinics including; Gynecology, Family Planning, Nutrition, Ophthalmology, Endoscopy, Cardiothoracic, Medical Outpatient Clinic (MOPC) and Dermatology clinics. Other units include Urology, Oncology, General Surgery, Cardiology,
Neurosurgery, Gastroenterology, Plastic Surgery, Mother & Child Health, Well Woman/WellMan, Pediatric, Surgical, Occupational Therapy, Antenatal Clinic, Comprehensive Care, Youth & Adolescent, Ear, Nose and Throat, Orthopedic Surgery, Physiotherapy, Midwife, Counseling Psychology and Psychiatry.
The hospital’s leadership also set its eyes on a new robust I. T system, a welcome addition that improved the medical facility’s bottom line, efficiency and also turned around its fortunes.
With a digital system, it’s natural that the hospital leverages digital tools to enhance the patient’s experience, and telemedicine is fast becoming the ideal tool at the hospital’s disposal.
“With the Metro App for patients, the hospital can track care from home to the ICU. Patients with long-term diseases can be kept healthy and productive in the community, as opposed to spending time and money in hospitals.”
For a long time, Dr. Gakombe has always been passionate about technology and how it can be used to transform the health sector in Kenya and beyond.
He was instrumental in the design and development of Hospital Information Management Software (HIMS 2000)which is currently in use in several hospitals, as well as E-care, one of the first digital catering systems in a hospital.
Outlook
Thanks to the availability of capital and the acceptance by society that private and faith-based hospitals are a prerequisite for a healthy nation, more for-profit healthcare providers have joined the fray, contributing to the sub-sector growth.
Boasting an experienced team of doctors, nurses and specialists, The Metropolitan Hospital’s next phase of growth is to expand its multi-specialty hospital model by launching new facilities in various parts of the country.
Dr. Gakombe says the hospital also runs a medical college to train the next generation of healthcare assistants. Since the launch of the medical college in 2016, the hospital has trained over 500 Health Care Assistants. The bulk of these graduates are absorbed by the hospital, while the rest find gainful employment in nursing homes, clinics, doctors’ offices and others have found their space in offering Home Based Care.
At the industry level, the doctor prescribes a coming together of faith-based, private and public hospitals to address the finance and human resource gaps as well as supply chain and technology access issues to build a more resilient health sector.
