OA10 Health Care Sector Saudi Arabia 2013

Health Care Sector Saudi Arabia

Opportunity Arabia 10 October 4th 2013

Saudi Arabia •Largest health care market in the GCC

•Population 28.9 Million (2012 World Bank)

•Average life expectancy 75 years

Health Care Sector

National Health Care System

Government provides health care via several Government agencies: MOH, MODA, NGHA,MOI, MOE

(70% of services Primary to Tertiary)

Private Sector – growing role (30% of services Primary and Secondary)

Ministry of Health (MOH)

Regulation

Planning

Finance

Management

Ministry of Health (MOH)

Role

Ministry of Health (MOH)

20 MOH Regions

Planning and Development

of Services

Preventative Curative Rehabilitation

Structure of Services

•Tier 1 : Primary Health Care (PHC) via network of 1925 medical centres

•Tier 2: Referral to Secondary and Tertiary Care Hospitals providing general and

specialised care (220 Hospitals)

Governmental Providers: Armed Forces and Security Personnel

MODA

MOI

SANGHA

Governmental Providers: Autonomous Agencies

Ministry of Education (students)

Ministry of Labour and Social Affairs (orphans and mentally retarded)

GOSI and GPYW - Sports

Royal Commission for Jubail and Yanbu

University Hospitals

Governmental Providers: National Tertiary Referral Centres

King Faisal Specialist Hospital and Research

Centre Riyadh and Jeddah

King Khalid Eye Hospital

Private Sector: 30% of healthcare

• Small hospitals 50-200 beds and polyclinics

• Primary and Secondary Care mainly Out patient services and minor surgery

• Variable standards of quality

Health Services

MOH

60% MOH

KFSHRC NGHA

40% Others

MODA EducationPrivate

30%

Government Aims

1. Massive expansion of health care sector including private sector.

2. World class health care facilities for citizens and expatriates

3. Centre for Medical Tourism

Achievements – Health Services 1

1. Primary Care service

2. 500+ Hospitals in public and private sectors.(50- 1000+ beds)

3. New Medical Cities under construction

Achievements – Health Services 2

• Tertiary Care – Organ transplants, 30 operations for conjoined twins

• 5 major medical schools and 21 Colleges offering medical training – 18 Government, 3 Private

Achievements - Population

1960 population 3 million, 90% nomadic

2012 population 28 Million, mostly urbanised

Doubling of life Expectancy since 1960s

Huge reductions in mortality and morbidity rates

Budgetary Allocations % GDP

KSA USA Japan China Germany0

2

4

6

8

10

12

14

16

18

Challenges: Resources

Infrastructure Deficiencies and Human Resources Shortages• Compared to other developed countries there is a

shortage of beds, nurses and doctors.

• Lowest number of beds, nurses and doctors per head of population in GCC.

Challenges: Rural/ Urban Divide

• Medical services concentrated in cities of Riyadh, Jeddah, Al Khobar and Dammam

• Delivery of quality services in other cities and rural areas is weak.

Challenges and Opportunities •Demand Drivers for Health Care

•Megaprojects and Medical Cities

•Private Investment Incentives and Opportunities

Demand Drivers 1

Demographics• Population Growth - 50% of population under age 25

• Population over 60 set to double

• Expatriate population not entitled to state medical care

Demand Drivers 2

Diseases• Lifestyle diseases – obesity, diabetes, cardiac diseases ,

renal diseases• Accidents and Trauma• Cancer• Genetic Disorders

Challenges

Infrastructure, Geography, Quality • Inadequate infrastructure• Staff shortages in all disciplines• Rural versus Urban Disparity in resources• Quality of Services – need for standard regulatory

framework

Solutions: MOH Medical Cities

6 New Medical Cities

• Additional 6200 beds

• Highly specialised centres for cancer, organ transplant surgery, eye surgery and cardiac diseases.

Solutions: MOH Hospital Expansion

• New hospital construction – major bed expansion in all regions of the country

Solutions: New Clinics

• Primary Care - SAR 7 Billion for establishing and funding 2000 Primary Care Services

• Rehabilitation Services

• Polyclinics

Solutions: MOH Initiatives

• Preventative Health Programmes

• E Health: Electronic Records and telemedicine

• Home Medicine Programme for ambulatory care

Solutions: Private Sector Expansion 2012 -2015

• Mandatory health insurance for expats creates increased demand for private medical care.

• Health insurance may be extended to Saudi citizens• Health insurance predicted to grow by 19% by end of 2015

Solutions: Training

• Ministry of Education will establish Medical training schools in all 24 Government Universities.

Solutions: Quality Control

• Quality Control of Clinical Services

• Hospital Accreditation System

• Standardisation of Medical Education

Business and Investment Opportunities

Government and Private

Government

• Hospital megaprojects and construction• E Health Services• Preventative Care and Education• Quality Control and Regulation

Government and Private

Private Sector• Private sector contribution in the primary and secondary

healthcare markets is heavily concentrated in 3 main provinces: Riyadh, Makkah and the Eastern regions. These make up approximately 66% of the population.

• Jazan and Al Jouf regions noted to be short of physicians and beds and require private sector investment..

Private Sector – Evolving

Emerging

Evolving

Developed

Government and Private

Private Sector• Private investments low – just 9 out of 125 new projects

• Strategic Initiatives to encourage private investment and reduce public sector burden..