Innovative Health Services Summary Of Project Information (SPI)       Project Name    Brazil - Innovative Health Services (IHS)              Region    Latin America and Caribbean        Sector       Project No009232   Projected Board DateFebruary 4, 1999   Company NameInnovative Heath Services (IHS)   Technical Partner and/or Major Shareholders    	Icatu Holding which will hold 30% of IHS, is part of the Icatu Group, which operates in different sectors of activity such as Investment Banking, Real Estate, Insurance, Health Care, and Entertainment.  Icatu is controlled by the Almeida Braga family.  The proposed investment will represent IFC''s third project with Icatu.  Other projects include a loan to support underwriting activities and participation in a private equity fund.    José de Mello Saúde (JMS), which will hold 30% of IHS, is part of José de Mello Group which is one of the largest Portuguese groups and operates in different sectors, such as financial including insurance, chemical, marine, health, and real estate.  JMS has extensive experience in the health sector where they are involved in the management and operation of public and private hospitals, post hospitalization care, preventive medicine, and other services.      Project Cost Including proposed IFC investment    	The proposed starting capital base of US$25 million will enable IHS to make a number of small investments in health care service companies.  IFC''s participation will be up to US$6.25 million which will represent 25% of the initial capitalization of the company.    Location of project and Description of site    	IHS will be incorporated in Brazil and will have operations throughout the country and eventually in other Mercosul countries.     Description of Company and Purpose of Project    	The project involves establishing a holding company, Innovative Health Services (IHS), which will support new ventures and the early stage development of companies that will provide services intended to improve the cost efficiency and service quality of the Brazilian health care industry.  IHS target activities will be in areas such as home care, occupational and preventive medicine, prescription benefit management, public and private hospital management, rehabilitation centers and outsourced hospital services such as laundry.  These concepts which are aimed at improving management, increasing the flow of information and reducing costs, are expected to have a significant development impact by improving the efficiency and reliability of the Brazilian health care system.  The beneficiaries of the improvements brought about by these types of services will be the patients, the health care providers and the financiers of health care in the country.     By helping the development of such companies, IFC will play an important role in the modernization and innovation of the traditional health care system, while helping improve access and making it more comprehensive and cost efficient.  The project will be an opportunity for IFC to advance its strategic focus on the social sectors.  This will be the first project undertaken by LACs Health Care Division to invest in non-traditional health care service companies.  The experiences and insights gained from it will then be parlayed to other health care investment opportunities in the region.    Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedure.  IHS has committed to establishing an environmental management system that will ensure that investments are consistent with applicable host country environmental regulations as well as applicable World Bank policies and environmental, health and safety guidelines; designating appropriate individuals who will have responsibility for environment; attending IFCs environmental management workshops; ensuring that category A projects are cleared by IFCs Environment and Social Review Unit; and submitting an annual environmental monitoring reports.    The  is  from the InfoShop.       Date SPI sent to InfoShop     January 5, 1999      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).