Hospital Charts Capital Market Debut During Push for Public-Private Venture

Sep 13 , 2025. By BEZAWIT HULUAGER ( FORTUNE STAFF WRITER )

When U.S.-trained physician Markos Feleke (MD) co-founded Washington Health Care (WHC) in 2013 with just three million dollars in capital, few could have predicted its trajectory. Today, WHC has grown to serve as many as 500 patients a day in two neighbourhoods in Addis Abeba. Its next chapter is to expand with a 240-million-dollar Washington Tertiary Hospital project. Slated for phased construction, the hospital’s first 70 million dollars phase is designed to bring 110 beds online next year, with ambitions for a 500-bed facility that could accommodate 800,000 patients annually.

Washington Health Care (WHC), a private healthcare provider founded by U.S.-trained physician Markos Feleke (MD), is preparing to go public and break ground on a 240-million-dollar tertiary hospital. The company, incorporated in 2013 with three million dollars in capital, is now exploring a dual-track expansion strategy through an Initial Public Offering (IPO) and a public-private partnership (PPP) with the government.

Markos, who retains 80pc ownership in the company, co-founded WHC with fellow physicians Fasil Tefera (MD) and Gasmelbari Mustafa (MD). Since its inception, WHC has expanded its footprint with two secondary care centres in Addis Abeba’s Bole and Bole Bulbula neighbourhoods. The company’s registered capital has grown to 10 million dollars, and it now serves between 300 and 500 patients a day, supported by a staff of 400.

WHC’s ambitions centre on the Washington Tertiary Hospital, a two-phase mega project designed to serve 800,000 patients annually. The first phase, budgeted at 70 million dollars with a capacity of 110 beds, has faced an eight-month delay due to overlaps with the corridor development project. The facility is now expected to open next year. A 170-million-dollar second phase will bring total capacity to 500 beds. The hospital plans to offer the country’s first private radiation therapy services and to establish a centre of excellence in cancer diagnosis and treatment.

For Markos, the path to expansion is constrained by a familiar bottleneck of financing.

“We hope the IPO offering will help us move finances towards our newest projects,” he told Fortune, citing persistent gaps despite substantial investments.

The capital market option is being timed to coincide with the launch of the new hospital, a calculated move intended to boost share valuation. However, before shares can be offered, WHC is required to undergo a legal transition from a private limited company to a share company. The transformation entails regulatory restructuring, disclosure obligations, and governance reforms that many firms have yet to meet.

“The major goal is for companies with IPO plans to meet offering standards,” said Hana Tehlku, director general of the Ethiopian Capital Market Authority (ECMA).

According to Hana, the Authority has held 45 sessions on the IPO process, and three IPO service providers are expected to be licensed by the end of this month.

Analysts say WHC should decide between selling existing shares or issuing new ones.

“IPO offers come with new rules for companies,” said Girum Amaha, an economist and capital market enthusiast. “The shift to a disclosure-based system will challenge firms unfamiliar with making financials public.”

In parallel with its IPO plans, WHC is negotiating a public-private partnership with St. Paul’s Millennium College Hospital, the largest tertiary care facility in the country. The state-run hospital has new infrastructure but lacks the necessary resources to fully equip and operate it. Markos views the partnership as a natural outgrowth of federal health authorities' strategy, which positions medical tourism and private-sector participation as central to the development of the healthcare sector.

At a recent WHC rebranding event, State Minister for Health, Saherela Abdulahi, applauded private-sector contributions during the COVID-19 pandemic.

“The health sector needs quality of care and trust-building,” she said.

She urged greater adoption of innovations such as online appointment systems and paperless operations.

A 2023 report by WHO-Ethiopia surveyed a limited tertiary care capacity, revealing that only one of the 28 comprehensive specialised hospitals is privately owned. In a country where one in every 10 patients requires tertiary care, demand far exceeds capacity. A study at a tertiary facility in Addis Abeba found that trauma cases made up 70pc of patients, yet only half of those requiring admission were admitted. Among those needing inpatient care, the referral rate reached 50pc, with 66pc of referrals caused by insufficient beds. Four percent of patients waiting in emergency rooms died before being transferred.

Markos is also pushing for accreditation from the U.S.-based Joint Commission Standard (JCS), considered a global benchmark for healthcare quality.

“Washington Tertiary Hospital is expected to be among the first accredited facilities when it opens,” he told Fortune. "Such recognition is essential to gaining patient trust."

PUBLISHED ON Sep 13,2025 [ VOL 26 , NO 1324]