The Saudi government is rigorously engaged in involving the private sector in the healthcare industry and increasing its contribution to 50% as part of a complete system restructuring.
Experts told Asharq Al-Awsat that they believe that the government’s steps to engage the private sector strengthen companies’ opportunities to play a significant role in realizing promising prospects and expanding their operations in line with Saudi aspirations.
They emphasize the transfer of all healthcare clusters to the Health Holding Company (HHC) and the establishment of three specialized companies to assist in restructuring the system.
On Sunday, Saudi Health Minister Fahad Al-Jalajel, at the ongoing Health Professionals Forum in Riyadh, announced the establishment of three specialized companies aimed at facilitating the restructuring of the healthcare sector.
Among them is the National Unified Procurement Co. (NUPCO).
Al-Jalajel had stated that the ministry is currently collaborating with the Public Investment Fund (PIF) to assess the initial public offering (IPO) for National Unified Procurement Co. (NUPCO).
Last year, the Saudi Cabinet approved the formation of the HHC with the goal of harnessing capabilities to enhance the quality and efficiency of healthcare services provided to citizens.
Al-Jalajel disclosed that by the year 2024, all healthcare clusters will transition from the Ministry of Health to the HHC, moving closer to the implementation of the national insurance system for citizens.
The minister further explained that citizens will have full coverage within the network of the HHC in the second phase, which is set to commence in mid-2024.
The second phase will take two years to complete the transfer of all healthcare clusters to the HHC, followed by the launch of the “National Insurance” program.
Economic analyst Abdulrahman Ahmed Al-Jabiri confirms that the healthcare sector is receiving strong support and attention from the government.
Government efforts reflect a concerted push to elevate the quality of healthcare services provided to both citizens and residents, thereby enhancing opportunities for private sector involvement in achieving promising prospects.
Al-Jabri emphasized to Asharq Al-Awsat the importance of transferring all clusters from the Ministry of Health to the HHC and noted that the average healthcare service coverage in the Kingdom has risen from 81% to 94%.
Additionally, the creation of three specialized companies will aid in the restructuring of the healthcare sector.
Salem Baajajah, an economics professor at Jeddah University, pointed out that the government’s direction is evident in the increase of healthcare service coverage to 94%.
He also stressed that the transfer of all healthcare clusters to the HHC and the establishment of three specialized companies will contribute to the restructuring of the sector.
Furthermore, Baajajah said the government’s move towards the flotation of NUPCO will likely enhance the quality of government healthcare services, improve supply and medical provisioning, and meet the healthcare sector’s needs effectively.
