JEDDAH: The Ministry of Health has announced a plan to reduce expenditures this year.

There will be reductions mainly in the areas of allowances, overtime, travel expenses, medical equipment and supply purchase agreements, medical referrals and the process of project bidding.

In its directive, the ministry limited contracts with doctors, technicians, specialists and employees to those with very rare and important specialties and that contracts should not exceed 90 days per year.

It also called for a review of all current and future contracts for the purchase of medicines and lab and medical supplies. Behind the review is the need to reduce expenses or to find less expensive alternatives and not to purchase materials, equipment, or medical supplies from expenses allocated for purchasing emergency equipment or materials.

It called for a reduction in commitments related to bonuses, overtime, travel allowances, and travel tickets, as well as the period for internal and external retreats to no more than 30 days per employee per year. Furthermore, employees should not be sent to attend forums, conferences, and trainings abroad unless absolutely necessary.

Overtime at self-operating hospitals should be limited to a maximum of four months per financial year, the equivalent of two hours per day and with the approval of the deputy minister for treatment services, the ministry added.

As for insurance, insurance companies should not be resorted to directly unless in urgent and necessary situations, and only upon approval by the concerned authority and purchases should be stopped if they can be delayed without affecting the work.

The ministry also highlighted the importance of compliance with all instructions and regulations related to treatment referrals abroad or to private sector hospitals. It emphasized the need for continuous evaluation of such cases.

With regards to project bids, these should be within the limit of approved costs, “and in the case of lower or higher costs, some of the project items should be limited or delayed, provided this does not impact the beneficiaries of these certain project activities and prior approval is obtained from the deputy minister.”

As for projects, “parties should ensure bids are in line with pre-approved work plans and the project budget, and that costs are distributed to different line items, such as establishment, supervision, and preparation, as well as to limit requests for changing project activities in order to avoid additional costs and delays.”

Expenses should not be shifted between line items or activities in a manner that contracts the approved work and budget plans in order to avoid any discrepancies or inconsistences in financial approvals, the ministry said.