The Saudi healthcare system has undergone large scale reforms in recent years that have contributed to the increased quality and affordability of healthcare services in the Kingdom. One of the most notable reforms has been the development of public-private partnership (PPP) initiatives as a means of making significant improvements to the provision of healthcare services.
It seeks to increase the private sector's participation to overall health care spending from its current level of 25% to 35% by the end of this decade. The Ministry of Health will transition from being a supplier of healthcare to a regulator in this process.
The government's desire to expand health care capacity and implement a new model of service in response to urgent demographic and economic issues is also reflected in the increased thirst for private sector investment and expertise.
There is a chance that noncommunicable diseases could rise as the elderly population is predicted to increase by 2030.
In the upcoming years, pressure on service delivery will increase as insurance coverage requirements are expanded. As part of Vision 2030, the nation's long-term economic and social objective to limit its dependence on oil earnings, the Kingdom is swiftly changing its health care system.
By integrating cutting-edge medical procedures, it aims to promote public health and prevent disease while maintaining accountability and financial stability.
Unlocking the potential
The Saudi government has worked hard in recent years to establish the institutional and legal foundation necessary to encourage investment in healthcare and hasten privatization.
In 2017, the Kingdom proposed legislation that made it possible for healthcare facilities to be owned entirely by foreign entities.
A long-awaited Public Sector Participation Law, which was passed in 2021, altered the legal framework that governs PPP and privatization.
These actions help another goal of the government's Vision 2030 strategy, which is to diversify the economy while increasing the amount of foreign direct investment to 6 percent of the GDP by 2030. This goal is supported by promoting the heath care sector as an appealing sector for PSP.
Transparency: To enable a dependable and consistent investment process that serves investors' interests, transparency in commercial procedures needs to be encouraged.
Accessibility: There is a need to increase the accessibility of the current ecosystem, which is difficult for investors to navigate because it has many different structures and bodies with frequently overlapped roles.
Accountability: In order to handle P2P without raising worries among the public, it must be transparent and frictionless, which calls for flexibility from the commercial sector.
Digital transformation: Prioritizing digital transformation is essential to luring in the private sector actors who will advance the delivery of healthcare.
Streamlining: Along with adapting to deal dynamics and developing and capturing value, it is also necessary to streamline and simplify current processes to meet the sector's evolving needs.
Conclusion
The leadership is serious about strengthening the nation's healthcare system and bringing a more efficient model for the delivery of care to Saudi citizens. Questions remain as to how much room there is for private sector participation in healthcare, but it appears that there is support for further collaboration which suggests an interest in a move towards a model similar to that of Singapore or even the US.