Saudi Arabia's Healthcare Sector Undergoes Significant Transformation

Strategic Insights -

In a bid to address the unsustainable financial burden on its health expenditure, the Saudi Arabian government is shifting its focus towards regulating medical services and privatising the management of existing hospitals. This move is expected to improve the quality of care, attract more health insurance companies, and reduce the need for patients to travel abroad for treatment. The government has also launched an international recruitment drive to address the shortage of nurses in the country.

Key Takeaways:

  • The Saudi Arabian government has deemed the current funding model for healthcare as unsustainable, citing population growth and the growing disease burden as key reasons.
  • The government plans to restructure the management of existing 218 government hospitals into private enterprises, with any additional hospitals or clinics built being private.
  • Regulating medical services rather than financing the provision of healthcare is expected to raise the quality of medical care offered.
  • The Dr. Soliman Fakeeh Hospital (DSFH) became the first private hospital in the western region to be accredited by the Australian Council of Healthcare Standards International (ACHSI), setting a standard for other hospitals to follow.
  • The recruitment of over 2,000 specialist nurses from the Philippines is part of the government's efforts to address the shortage of nurses in the country, with plans to reserve places on specialist nursing courses for Saudi women.
  • The successful mapping of the Arab genome by researchers is expected to support further investigations into predisposed illnesses and provide strong indicators for predicting the spread of certain diseases.
  • Key companies mentioned include GlaxoSmithKline, Novartis, Merck & Co, Pfizer, Sanofi-Aventis, Saudi Pharmaceutical Industries & Medical Appliances Corp (SPIMACO), TABUK Pharmaceutical Manufacturing, and Al Jazeera Pharmaceutical Industries (JPI).

Statistics:

  • The Saudi Arabian government expects the population to increase to 27.6mn people by 2013.
  • There are currently over 218 government hospitals in Saudi Arabia.
  • More than 2,000 specialist nurses are to be recruited from the Philippines.
  • The Saudi Arabian government has proposed to restructure the management of existing hospitals into private enterprises.
  • The Dr. Soliman Fakeeh Hospital (DSFH) is the first private hospital in the western region to be accredited by the Australian Council of Healthcare Standards International (ACHSI).

Sources:

  • Research and Markets, "Saudi Arabia Pharmaceuticals and Healthcare Report Q1 2009". (http://www.researchandmarkets.com/research/5cb394/saudi_arabia_pharm)
  • Financial Times, October 2008.
  • Saudi Arabian General Investment Authority (SAGIA)
  • Saudi Ministry of Health.