RIYADH, 26 August 2003 — Foreign investors will be allowed to own hospitals in the Kingdom as part of the government’s plan to promote overseas investment in the health care sector.
This is part of the bylaws under the Health Act issued by the Ministry of Health recently to streamline health care services provided by various government agencies and integrate them into a comprehensive network. The bylaws come into force three months from the date of publication in the official gazette.
Deputy Minister of Health Dr. Othman Al-Rabea yesterday told reporters the Specialized Health Care Establishments Council had endorsed a proposal under which foreign investors would be allowed to own hospitals in line with government regulations. There was no need to go through a Saudi sponsor. Prospective investors need not be doctors.
The deputy minister said the concept of “health care provision” was redefined under Article I of the Health Act. What it implied was the “availability of health care services” in the Kingdom rather than government delivery of those services. By redefining the concept of providing health care services, the government has freed itself from the financial obligation it previously involved.
But on a limited scale such services — first aid, for example — would be provided to citizens and expatriates in emergency situations. Subsequently, the person would be referred to the hospital or the clinic for which he has insurance cover.
Dr. Al-Rabea said that unlike in the past when medical facilities of various government organizations like the Ministry of Health, the National Guard, and others were available only for the employees of those respective organizations, they had now all been integrated into a comprehensive network.
The Ministry of Health, in cooperation with the Provincial Councils in each region, has formulated a plan to extend health care services to various parts of the Kingdom. The bylaws also address the needs of segments of the population in urgent need of health services, such as the elderly, victims of natural disaster, mothers and children, the mentally handicapped or terminally ill patients.
One of the major objectives of the health bylaws is the decentralization of administrative authority and delegation of responsibility to the respective health regions. Another bylaw envisages the establishment of an executive council consisting of the director general of health affairs and high-ranking MOH officials who will meet at least twice a year.
Dr. Al-Rabea said Article 11 of the Health Act provided for the transfer of some MOH hospitals to the private sector, paving the way for the privatization of health care services. However, any such transfer would be preceded by a feasibility study.
Privatization could happen either in the form of a long-term lease or the constitution of an autonomous corporation made up of government nominees and representatives of the private sector. The bylaw also provides for the setting up of a health council composed of government and private sector agencies, medical establishments, representatives of the Ministry of Health, National Guard, Ministry of Defense, Ministry of Interior, the King Faisal Specialist Hospital, medical and dental colleges, the Saudi Council for Health Specialties, the Saudi Red Crescent Society and the Health Insurance Council.
The council would be tasked with providing integrated health services among government agencies at all levels, from procurement of drugs to health promotion.
He said an important aspect of Article 9 of the Health Act is that it considers private clinics and polyclinics together with the government health centers as the “first level of entry” into the health care system. In the past, only primary health care centers provided such basic health services, he added.
