JEDDAH, 21 May 2005 — The Health and Finance Ministries are exploring the establishment of special hospitals for low-income groups — including expatriates — in different parts of the Kingdom, an informed source said.

The move comes after a government decision to implement a cooperative health-insurance plan in phases starting June 1, 2005, after learning that many people cannot afford insurance premiums.

“These hospitals will provide services to the public at reduced rates compared to other hospitals,” Al-Madinah daily quoted the source as saying. The new hospitals are expected to solve many problems faced by low-income Saudis and expatriates.

The Health Ministry and government agencies currently run more than 200 hospitals across the country. In addition, there are more than 1,800 government-owned primary health care centers, 25 health institutions, 130 private hospitals and more than 4,000 clinics owned and operated both by Saudis and foreigners.

Under the current plan, the cooperate health insurance scheme will be introduced first for expatriate workers in the middle of the year.

The Health Ministry requires any company employing 500 or more expatriates to provide health insurance before the issuance of residence permits. The plan will be rolled out in three phases. The second phase involves companies with a non-Saudi work force of 100 to 500, and the third stage affects companies with a non-Saudi work force of less than 100.

Dr. Reda Khalil, adviser to the minister of health, said the plan covered most needs of non-Saudi employees be they inpatients or outpatients. The Council of Saudi Chambers of Commerce and Industry set up the National Center for Medical Insurance Standards, which will establish uniform guidelines for health care providers.