Healthcare Trends

The prominent role of PPPs in advancing Saudi Arabia’s healthcare landscapeThe prominent role of PPPs in advancing Saudi Arabia’s healthcare landscape

Public-private partnerships (PPP) have gained significant attention in Saudi Arabia as they can enhance healthcare services, infrastructure, and overall quality.

Deepa V Narwani

September 12, 2023

5 Min Read

Image via Canva Pro

Saudi Arabia has taken significant steps towards enhancing the future of its healthcare sector, especially with Saudi Vision 2030’s Health Sector Transformation Program aiming to restructure the region’s healthcare ecosystem.

A comprehensive review of published literature in the Eastern Mediterranean Health Journal sheds light on key areas for enhancement, including cost reduction, workforce capacity building, increased financing, infrastructure improvement, and meeting growing demands. The review also highlights challenges such as safety and quality of services, equitable access, information system effectiveness, referral system issues, and optimal resource utilisation.

To meet these growing healthcare demands, the Ministry of Health in Saudi Arabia and other government bodies have been working towards creating robust public-private partnerships (PPP) frameworks and initiatives to encourage private sector participation in the healthcare sector.

A PPP involves collaboration between a public sector authority and a private sector entity to jointly deliver public services, share risks, and allocate resources efficiently. PPPs can play a crucial role in developing healthcare infrastructure, such as hospitals, clinics, and specialised treatment centres. Private sector partners often bring in funding, design expertise, construction capabilities, and operational know-how. This allows the government to expand healthcare facilities without bearing the entire financial burden.

For example, in June this year, the Ministry of Health in Saudi Arabia awarded one of the Kingdom’s first PPPs in the healthcare sector to Altakassusi Alliance Medical following an open tender. The project will help deliver better radiology and imaging services to over one million beneficiaries across seven hospitals. It will also offer the country’s first collaborative network to support staff across each hospital, enhancing the quality of care provided in more remote parts of the Kingdom. Altakassusi Alliance Medical, a leader in regional diagnostic imaging, is a joint venture between Alliance Medical Group, one of Europe's leading independent providers of imaging services; Nexus Gulf Healthcare; and Saudi’s King Faisal Specialist Hospital International Holding.

Such collaborative endeavours can also lead to knowledge and skill transfer, benefitting the local healthcare workforce. Training programmes and knowledge exchange between public and private entities can contribute to the professional development of healthcare personnel.

Saudi Arabia sets strong foundation for growth

Below, we highlight several Saudi government initiatives that aim to transform healthcare in the Kingdom:

The Council of Ministers in Saudi Arabia approved the Private Sector Participation (PSP) Law in March 2021. This is a monumental move to overcome the prevailing resistance toward private entities participating in the Saudi healthcare system on a large scale. Private companies often bring streamlined processes, modern technologies, and management techniques that can lead to better resource allocation and improved patient outcomes.
The Saudi Ministry of Health (MOH) has set up several primary healthcare centres to provide essential and preventative care to older people and the general population. In this regard, they have established health clusters in different provinces working to identify disease markers early on. While these clusters will be responsible for providing medical services, MOH will continue monitoring them and legislating new rules. In a PPP arrangement, sharing risks incentivises both parties to work collaboratively to ensure the project's success.
MOH is betting increasingly on the usage of telehealth and digital solutions. This is done to help people access medical care from remote locations without travelling long distances. At the same time, this could allow hospitals to make administrative decisions autonomously and quickly. PPPs can play a crucial role here and lead to the creation of new healthcare service models that combine public funding and private sector innovation.
The MOH is also working on reducing the country's healthcare dependence on foreign workers. More than 70 per cent of physicians employed by the government healthcare system currently are of foreign origin. However, these figures are soon likely to change with the expanding recruitment of homegrown doctors. This should elevate culturally aware care to Saudi citizens.

Overcoming industry challenges in Saudi Arabia

Despite these positive measures, the Saudi National Transformation Program (NTP) identifies some challenges associated with privatisation, primarily related to preparation and execution, requiring more attention. However, these issues can be resolved by leveraging modern healthcare automation tools to improve communication and micro-level implementation.

Additionally, establishing a clear and supportive regulatory framework is essential for the success of healthcare PPPs. Regulations should cover aspects such as pricing mechanisms, quality standards, dispute resolution, and risk-sharing arrangements. A transparent and predictable regulatory environment can attract private sector investment.

It is also important to remember that healthcare needs evolve over time due to demographic changes. Therefore, PPPs must be adaptable to these changing circumstances to remain relevant and effective.

Some other challenges revolve around affordability and accessibility, ensuring equitable distribution of services, and potential conflicts of interest between public health goals and private sector profit motives. Careful planning and robust oversight are essential to address these challenges.

Saudi Arabia’s promising future in healthcare

Looking ahead, the future of healthcare in Saudi Arabia appears promising. Increased private sector involvement will lead to the establishment more clinics and hospitals throughout the Kingdom, ensuring accessible and convenient healthcare services. Furthermore, the growing implementation of healthcare automation tools will enhance the tracking, monitoring, and recording of various infections and diseases.

While the Saudi Vision 2030 may need more in terms of budget, performance, and conceptualisation, a technology-oriented approach and joining forces with private entities can transform and elevate healthcare delivery in Saudi Arabia.

References available on request.

To learn more about the latest developments in Saudi Arabia's healthcare industry, attend the Global Health Exhibition taking place from 29-31 October at Riyadh Front Exhibition & Conference Center (RFECC). Click here to know more.

Also, join industry experts in learning more about the latest trends in Saudi Arabia's healthcare industry by registering for the webinar "How innovation and tech are fuelling investment in Saudi Arabia's healthcare market."

About the Author

Deepa V Narwani

Deepa V Narwani is the Head of Editorial at Omnia Health, part of Informa Markets, and has extensively covered the B2B side of the healthcare industry. Prior to joining Informa Markets, Deepa was a Reporter/Sub-editor at Khaleej Times where she was responsible for reporting news, writing features, editing copy and managing social media presence. Deepa holds an M.A. in Journalism from the University of the Arts London, a B.A. from Manipal University Dubai in Media and Communications and a Diploma in Journalism and Public Relations, accredited by City & Guilds UK.

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