Black Lion to construct private hospital to generate additional revenue

ETHIOPIA – Black Lion, the largest referral hospital in Ethiopia, has announced plans to build its own private hospital within the next five to ten years as the hospital strives for autonomy from the federal government and financial self-sufficiency.

The hospital, which is under Addis Ababa University, will continue to provide free and low-cost services while building its own private hospital.

“The decision to build the private hospital stems from the move to make Addis Ababa University autonomous in a few months,” said Andualem Deneke (MD), CEO of the College of Health Sciences under Addis Ababa University.

“After that, the university should be able to operate independently. The government is gradually reducing the budget allocated to the university, and the university is improving its own income and becoming fully self-sufficient.”

Andualem says that the private hospital aims to generate additional revenue from hospital services and increase pay for its employees, which is a frequently asked question.

The organizational structure of the private establishment will be independent from Black Lion Specialized Hospital and it will sprawl on the 15 hectares of land given to the hospital for expansion.

A guideline has also been prepared to open a public laboratory that is easily accessible. A new diagnostic and laboratory service is also being built now and it will be integrated into the regular operations of Black Lion Hospital.

For the current budget year, the government has allocated 3.1 billion birr to AAU, of which 40 percent is diverted to the hospital.

Andualem says the budget is not sufficient. “Black Lion is establishing a soon-to-be operational public pharmacy to generate its own income.” The pharmacy is expected to open in the coming months in Mexico and will expand to other locations following its own procedures and guidelines.

Established in 1964, Black Lion receives referred and emergency patients from almost all of the nation’s regional and federal hospitals.

As the largest hospital in Ethiopia, Black Lion is the main teaching center for both clinical and preclinical training of most disciplines. The institution also offers nationwide clinical services that are unavailable to other public or private institutions.

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