Module 6HCM515
Health Law and Ethics
Instructor Name
Module 6 Learning Outcomes
1. Analyze governmental authority for regulation of
private healthcare organizations.
2. Examine how health regulation assists in meeting
health policy objectives.
HCM515: Health Law and Ethics
What is Privatization?
• Privatization is seen as a means for improving performance and the
utilization of resources.
• Privatization involves transforming the identity of an organization
• Full privatization: the entire organization is owned by a private entity
• Partial privatization: some elements remain with the government
• Not to be confused with Contracting
• This is an agreement between parties
• Dealing with an external relationship or plan
HCM515: Health Law and Ethics
Growing Private Sector In Saudi Arabia
• Saudi Vision 2030
• 2018: 284 public MOH hospitals, 47 other governmental sector
hospitals, and 163 private sector hospitals
• Private beds make up 25% of hospital beds in the country
• The Plan also includes turning public facilities into private facilities
HCM515: Health Law and Ethics
Saudi Regulations
• Types of Private Health institutions
• Hospital
• General Polyclinic
• Specialized Polyclinic
• Clinic
• Radiology Center
• Medical Lab
• Same-Day Surgical Facility
• Health Service Support Center
• Ambulance Transport Service Center
HCM515: Health Law and Ethics
The Saudi Arabian General Investment
Authority
HCM515: Health Law and Ethics
Driving Forces Behind Healthcare
Privatization
• Free agency
• Choice
• Property Rights
• Improved quality
• Fiscal efficiency
HCM515: Health Law and Ethics
Compare and Contrast Australia and Saudi
Arabia
HCM515: Health Law and Ethics
Funding & Facts in Australia and Saudi Arabia
Saudi Arabia
Australia
Population
31.1 million
24.4
Demographics
Younger/high birth rate
Older/Transitioning to retirement
Public Health
Fully funded by Ministry of Health
Combination of state and federal
funding
Health costs
4.1% GDP
9.5% of GDP
Universal Health Coverage
Yes
Yes
Percentage of Private Beds
40.5%
33%
Regulator
MOH
Regional and state authorities
HCM515: Health Law and Ethics
Healthcare Delivery
• Both Australia and Saudi Arabia have Gatekeeper systems
• Australia General Practitioner Clinics are akin to KSA Primary care
Centers
• Australian GPs are privately owned
• Available for rebates via the UHC system
• Saudi Arabia has high rates of nonurgent Emergency Department
admissions
HCM515: Health Law and Ethics
Successful Privatization
HCM515: Health Law and Ethics
Disadvantages of Privatization
• Organizations might focus operations on attracting patients
• Could shift costs and cause greater financial hardship
• Private facilities will ignore certain areas
• Facilities will not attract patients
HCM515: Health Law and Ethics
Employer Policies
HCM515: Health Law and Ethics
Summary
• The goal of healthcare is to provide access to quality care in a cost
efficient way.
• Saudi Arabia hopes to alleviate many of its healthcare woes through
encouraging the private sector in healthcare.
• While there are advantages to privatization healthcare regulations
must also take into account the disadvantages so as to relieve some
of the effect of the negative repercussions.
• The national government also has policies for employer. One specific
example in Saudi Arabia is a quota system so that more Saudi
Nationals are hired.
HCM515: Health Law and Ethics
References
• Al-Hanawi, M. K., Khan, S. A., & Al-Borie, H. M. (2019). Healthcare human resource
development in Saudi Arabia: emerging challenges and opportunities—a critical
review. Public Health Reviews, 40(1), 1. Retrieved from
https://publichealthreviews.biomedcentral.com/articles/10.1186/s40985-019-0112-4
• Alkhamis, A. A. (2017). Critical analysis and review of the literature on healthcare
privatization and its association with access to medical care in Saudi Arabia. Journal of
infection and public health, 10(3), 258-268.
• Almutairi, A. G., & Al Shamsi, H. S. (2018). Healthcare system accessibility in the face of
increasing privatisation in Saudi Arabia: Lessons from Australia. Global Journal of Health
Science, 10(7). Retrieved from
http://www.ccsenet.org/journal/index.php/gjhs/article/view/75073
• Ministry of Health. (2018). Kingdom of Saudi Arabia: Annual statistical book. Retrieved
from https://www.moh.gov.sa/en/Ministry/Statistics/book/Pages/default.aspx
• Montagu, D., & Goodman, C. (2016). Prohibit, constrain, encourage, or purchase: How
should we engage with the private health-care sector? The Lancet, 388(10044), 613–621.
• Royal Decree No. M/40 dated 3 / 11 / 1423 H Council of Ministers Resolution No. 240
dated 26 / 10 / 1423 H
• Sfeir, A., Al-Ammaj, F., & Al Shaikh, N., (2016). Foreign direct investment in the healthcare
sector in the Kingdom of Saudi Arabia. Retrieved from
http://www.clydeco.com/insight/article/foreign-direct-investment-in-the-healthcaresector-in-the-kingdom-of-saudiHCM515: Health Law and Ethics
Questions
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to seek further clarification.
HCM151: Health Law and Ethics
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HCM151: Health Law and Ethics
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