Healthcare Management

Establish collaborative partnerships in Saudi’s transformative journeyEstablish collaborative partnerships in Saudi’s transformative journey

Navigate Saudi Arabia's healthcare landscape with an understanding of the country’s public-private partnership model.

Vivek Shukla, Contributing Editor

October 31, 2023

5 Min Read

The canvas of Saudi Arabia's healthcare sector is poised for a sweeping transformation, all thanks to the visionary roadmap known as Saudi Vision 2030. This comprehensive blueprint envisions the nation as a global pioneer across diverse domains. The vision is structured around three pillars: fostering a vibrant society, cultivating a thriving economy, and nurturing an ambitious nation. These pillars interlace seamlessly to achieve the vision's overarching objectives and maximise the ensuing benefits.

Healthcare as a part of Saudi 2030

Putting Saudi Vision 2030 into tangible motion requires a cornerstone of dedicated efforts. The Vision Realization Office (VRO) takes on the pivotal role of steering and implementing specific programmes coined as Vision Realization Programs (VRPs). A standout amongst these is the Health Sector Transformation Plan (HSTP), nestled within the heart of the healthcare realm. This transformational endeavor aims to overhaul Saudi Arabia's healthcare sector fundamentally.

At its core, the Health Sector Transformation Program (HSTP) endeavours to forge a holistic and patient-centric healthcare ecosystem. A compelling shift toward value-based care underpins this effort, supported by key objectives such as transparency, financial sustainability, and the promotion of public health through innovative disease prevention and modern healthcare practices.

The programme embarks on a journey to ensure citizens' easy access to free healthcare and insurance, imbued with equitable geographical coverage. The expansion of e-health initiatives and enhanced healthcare quality are also pivotal facets.

The Health Sector Transformation Program is orchestrated under the stewardship of the VRO, in collaboration with KSA’s National Transformation Program. Building on this synergy, a new phase, initiated by His Royal Highness Crown Prince Mohammed bin Salman in 2022, sets sights on creating an operational blueprint for the programme. The goal is to elevate health and beneficiary services, steering them toward a prosperous and sustainable future. A meticulously outlined delivery plan will set in motion a series of nationwide initiatives, clarifying roles and responsibilities to usher in healthcare excellence throughout the Kingdom of Saudi Arabia.

Embracing transformational partnerships

Domestic and foreign healthcare organisations find themselves at the intersection of opportunity and progress in Saudi Arabia's healthcare market. The evolving landscape offers an array of enticing prospects for collaboration and partnership, all while aligning with both national and Vision 2030 objectives.

A unique cluster system

The implementation of healthcare reforms in the context of Vision 2030 will take place in three distinct phases, each progressively building upon the previous one:

The initial phase lays the groundwork for a structured insurance framework, paving the way for the subsequent phases of healthcare transformation.
Phase two transforms key public entities into corporatised clusters, creating room for private sector partnerships.
The final phase focuses on expanding healthcare coverage and encouraging private health insurance providers to adopt value-based principles, opening doors for collaborations.
This Cluster Model guides Saudi Arabia's healthcare reforms, progressively enhancing capabilities and value, making it an attractive destination for healthcare partnerships and investments.

Understanding the Public-Private Partnerships model

In the transformative healthcare journey of Saudi Arabia, the emphasis on Public-Private Partnerships (PPP) is crystal clear. This collaborative model is a cornerstone across all phases of the reform plan, signifying the government's eagerness to join hands with foreign entities, ushering in expertise, technology, and investments to elevate healthcare services.

How PPP works: The essence of PPP lies in the establishment of healthcare clusters, where Property Companies (Prop Co's) own infrastructure and Operating Companies (Op Co's) manage daily operations. Op Co's compensate Prop Co's for facility use, ensuring a steady revenue stream. Contracts to operate healthcare clusters are awarded, promising financial stability for foreign entities.

In essence, PPP is a collaborative approach that merges public sector resources and capabilities with the agility and innovation of the private sector. It allows governments to leverage private sector expertise, investment, and efficiency, ultimately enhancing the quality and accessibility of public services, such as healthcare.

Competitive bidding method: One key mechanism within PPP is the competitive bidding process. Here, private entities, including foreign organisations, participate in a competitive selection process to secure contracts for managing healthcare clusters.

Competitive bidding not only maximises efficiency but also guarantees quality healthcare services. It compels organisations to manage costs effectively and encourages the introduction of innovative technologies, fostering advancements in healthcare delivery.

Overcoming challenges, seizing opportunities

While the Saudi healthcare market promises remarkable growth potential, it also presents challenges for private investors. Regulatory intricacies, data availability, and sectoral unpredictability are some of the hurdles that require adept navigation. Partnering with local healthcare partners can mitigate these challenges.

Maximising opportunities through local partnerships

In the Saudi healthcare landscape, local partnerships are a strategic asset. These collaborations offer invaluable insights into navigating complex regulations, essential for ensuring compliance and freeing resources for innovation. With an established presence, local partners facilitate access to the public sector sales arena, a critical avenue in Saudi Arabia's healthcare market. Prequalification and quick response capabilities are expedited with local networks, streamlining entry into this dynamic market. For foreign organisations, local partnerships are more than just a choice; they are a gateway to success.

A promising horizon

The Saudi healthcare landscape is a realm teeming with opportunities, and foreign healthcare organisations are positioned to play a significant role in this evolution. A burgeoning population, government support, untapped healthcare niches, a robust economy, and a strategic location converge to make this a golden investment terrain.

As the Saudi Vision 2030 initiative takes centrestage, the HSTP offers a structured and phased approach to capitalise on this transformation. By aligning with a local partner to aid in navigating challenges and leveraging opportunities, foreign healthcare organisations can become pivotal contributors to shaping a healthier, more prosperous future for Saudi Arabia while ushering in transformative outcomes for their organisations.

Vivek Shukla is a senior advisor for healthcare growth in GCC. Article written with inputs from data analyst, Nada Tarek.

Don’t forget to pick up your copy of Omnia Health from the entrances of Halls 1 and 4. As the official Editorial partner of Global Health Exhibition, the latest edition features insights from affluential leaders alongside key catalysts driving healthcare markets in the region. In case you missed it, you can access the digital version HERE.