Lumina Specialist Hospital — Risk Register & Mitigation

A structured risk register and the mitigation measures covering construction, clinical, regulatory, financing, market and execution risks.

Lumina Specialist Hospital Business PlanSection 11 › Risk Register & Mitigation

Section 11 · Business Plan

Risk Register & Mitigation

A structured risk register and the mitigation measures covering construction, clinical, regulatory, financing, market and execution risks.

The principal risks to the Project are set out below with an
indicative residual rating after mitigation. The register is intended as
a starting point for lender and investor due diligence, not as an
exhaustive assessment.

11.1 Risk matrix

Risk Likelihood Impact Mitigation
Slow occupancy ramp / demand shortfall Medium High Phased bed commissioning; funded reserve; programme-led (dialysis/oncology) base load; downside-sized debt
Scheme tariff & network power High High Early DSP/network contracting; diversified payer mix; cost discipline
Specialist recruitment & retention Medium High Attractive practice terms; modern platform; partner clinical network; phased ramp
Construction cost / time overrun Medium Medium Fixed-price contracts; contingency; experienced PM; milestone drawdowns
Debt-service cover in ramp (<1.0x) High Medium Capitalised mezzanine interest; capital grace; debt-service reserve; covenant design
FX on imported equipment Medium Medium Forward cover / timing; local maintenance contracts; budget contingency
Regulatory / NHI policy shift Medium High 7-yr horizon ahead of NHI; engagement; flexible model; exit optionality
Licensing / accreditation delay Medium High Early application; experienced regulatory advisers; buffer in schedule
Key-person / governance gaps Medium Medium Board build-out; key-person cover; incentive plan; succession
Bad debt / revenue-cycle leakage Medium Medium Robust HIS; pre-authorisation discipline; collections function

11.2 Principal risks in focus

Three risks that most shape the investment
case

1. Ramp & break-even. Net-profit break-even sits
near 71% occupancy versus a 72% Year-5 base case — a thin margin of
safety. A persistently slower ramp is the single largest threat to
returns and cover. 2. Payer power. Concentrated schemes set tariffs and
network terms; failure to secure favourable contracts would undermine
volumes and pricing simultaneously. 3. Leverage through the trough. High initial gearing
and sub-1.0x ramp DSCR mean the structure depends on the reserve and on
capitalised mezzanine interest holding the venture through to cash
break-even.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Lumina Health Holdings (Pty) Ltd.