In order to fulfill the country’s health sector developmental objectives, the Kingdom of Saudi Arabia has
endeavored to reorganize and improve its health care systems. One area of health sector that has undergone
profound change and significant progress is health insurance. Thus, this study aims to discuss the success of
health insurance for citizens through Hospital Privatization in Saudi Arabia. The method of the study was based
on a discussion of several studies about Hospital Privatization in Saudi Arabia and health insurance for Saudis
citizens. This study found that to success and effectively apply the program of health insurance for Saudis
citizens through hospital privatization in Saudi Arabia, it must overcome all obstacles that may face Saudi health
system, such as organization of the health power, absence of capital and human asset obtaining coordination,
quick increment in health uses, and the method for repayment, expanding competition, and endeavors at
controlling costs, as well as, a deficiency of Saudi health experts, the health service’s numerous parts, restricted
money related assets, changing examples of malady, appeal coming about because of free administrations, a non-
appearance of a national emergency administration arrangement, poor availability to some human services
offices, absence of a national health data framework, and the underutilization of the capability of electronic
health systems. Moreover, the study concluded that the country that wants to privatize its health system, it must
take effective strategy producers to direct the part that private medical insurance will play in their health
frameworks and direct the segment properly with the goal that it serves public objectives of widespread scope
and value. The current form of the insurers may not be able to insurance all citizens, thus, this study
recommended that the Saudi government must let the foreign insurance companies to enter into the Saudi health
insurance market to enable citizens to get high-quality health service.
1. Introduction
The twentieth century has seen the worldwide change of human health, empowering individuals to live more and
more beneficial lives. Notwithstanding affecting populace size and structure, better public insurance has
enhanced financial development rates everywhere throughout the world. The normal human life range has step
by step yet dynamically expanded subsequent to the second 50% of nineteenth century, expanding especially
quickly in this century (International Monetary Fund (IMF), 2004). Saudi Arabia is a dynamic nation that
appreciates monetary development and political steadiness. This nation is an Islamic kingdom. With current
advances in the human services economy, Saudi Arabians have turned out to be more beneficial and solid. The
force of human services accomplishments in Saudi Arabia is a sign of the achievement of the nation. Great health
empowers Saudi Arabians to profit by enterprising and significant lives. The brilliant health of its residents adds
to the riches and general public strength of a nation (Mufti, 2000).
Health care services in Saudi Arabia have been given a high need by the government. Through the previous
couple of decades, health and health administrations have enhanced extraordinarily as far as amount and quality.
Gallagher has expressed that: Although numerous countries have seen sizable development in their medicinal
services frameworks, likely no other country (other than Saudi Arabia) of substantial geographic scope and
populace has, in similar time, accomplished such a great amount on a wide national scale, with are a generally
abnormal state of consideration made accessible to for all intents and purposes all portions of the populace
(Gallagher, 2002).
As indicated by the World Health Organization (WHO) (The world health report, 2000), the Saudi social
insurance framework is positioned 26th among 190 of the world’s health frameworks. It precedes numerous other
worldwide medicinal services frameworks, for example, Canada (positioned 30), Australia (32), New Zealand
(41), and different frameworks in the area, for example, the United Arab Emirates (27), Qatar (44) and Kuwait
(45). Notwithstanding these accomplishments, the Saudi medicinal services framework faces numerous
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
184
difficulties which require new methodologies and approaches by the Saudi Ministry of Health (MOH) and in
addition compelling collaboration with different areas (Alkhamis, 2012).
Privatization of public hospitals has been seen by policy-makers and researchers as the most ideal approach to
change the Saudi health insurance framework (Ministry of health, 2015;Saati, 2003). Ventures to execute a
privatization methodology have been started and related direction has been passed by the legislature. Therefore,
various public hospitals are liable to be sold or leased to private firms throughout the following couple of years
(Walston, Al-Harbiand Al-Omar B, 2008). Privatization of public hospitals is relied upon to convey various
points of interest to the government and to the country. It is trusted that privatization will help with accelerating
basic leadership, diminishing the administration’s yearly use on social insurance, creating new money related
hotspots for the Ministry of Health (MOH) and enhancing human services administrations (Saati, 2003).
Otherwise, privatization may influence the current coordinated framework amongst healing centers and primary
health care offices (Walston, Al-Harbiand Al-Omar B, 2008). As healing centers get to be privatized, they will
concentrate on drawing in patients, even the individuals who may not require clinic level consideration. Besides,
individuals with health spread may like to get to enormous hospitals straightforwardly rather than by means of
primary health care focuses or group healing centers. Furthermore, private hospital will have motivating forces
to move non-refundable expenses back to the publicprimary health care (Walston, Al-Harbiand Al-Omar B,
2008). Such practices will put monetary weights on the government (Alkhamis, 2012).
A further downside of privatization is that the customary state/public hospitals will not have the capacity to
ingest enough of the human services market contrasted and privately owned businesses, unless they overhaul at
all levels (such as, administration, foundation and workforce) before beginning to privatize (Walston, Al-
Harbiand Al-Omar B, 2008). In the move to privatization, privately owned businesses are liable to center their
exercises inside urban areas and bigger groups, leaving individuals in rustic regions at a difficulty. The
government ought to set controls that ensure the privileges of rustic groups and give them reasonable and fair
human services administrations (Alkhamis, 2012).
In the end, if the government does not have any significant bearing satisfactory control over the medicinal
services market, use on human services may increment radically as an aftereffect of higher evaluating and
benefit looking for behavior (Walston, Al-Harbiand Al-Omar B, 2008).
Thus, this paper outlines the success of health insurance for citizens through Hospital Privatization in Saudi
Arabia. A particular emphasis has been given to privatization of the Saudi system of government especially in
healthcare sector, including the privatization mechanism (Health Insurance). In addition, this paper will review
the most successful hospital privatization in US.
2. The problem of the study
With an expected populace of 26 million occupants with a yearly development rate of 2.2%, the Saudi Arabian
medicinal services division takes into account a quickly developing populace and the simultaneous expanding
request on the human services segment. By and large the supply of human services offices battles to keep pace
with the thriving populace, a circumstance perceived by the Government who have as of late acquainted
activities with urge the private division to coordinate the shortage and advantage from this possibly lucrative
area (Yusuf, 2014; CIHO, 2012).
The Healthcare area in the Kingdom of Saudi Arabia is fundamentally overseen by the Government through the
Ministry of Health (MOH) and number of semi Public association who particularly work clinics and therapeutic
administrations for their representatives. Likewise, private segment administrators are additionally assuming a
key part in giving quality social insurance administrations in the Kingdom (CIHO, 2012).
The Saudi Healthcare part is organized to give a fundamental stage of social insurance administrations to all,
with particular treatment offices offered at some private and public clinics. Colliers International Healthcare
overview (CIHO)gave a brief depiction of the key elements affecting the Saudi Healthcare segment and the
future standpoint (CIHO, 2012).
At present, the Saudi Arabian government finances a large portion of the interest for human services capital and
working uses. In any case, experts trust that administration alone will be notable keep on meeting this interest.
They have presumed that the best way to guarantee that Saudi nationals’ health needs will be met without
unfavorably influencing financial advancement is to build private area support in the medicinal services
framework. Just by drawing in accomplices from the private division who can bring world-class medicinal
learning, administration abilities, as well as, cash-flow to the part will Saudi Arabia have the capacity to make
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
185
top notch human services accessible to everybody in Saudi society. The administration has remembered this
circumstance, and has distinguished human services as one of the key areas focused in its far reaching
privatization program (Barrage, Perillieux and Shediac, 2007).
The government of Saudi Arabia has ended up mindful of this circumstance and has concocted activities to
bolster the private part to coordinate the shortfall and expansion benefit from the possibly remunerating division.
The human services part is under the administration of the government through the Ministry of Health. Moreover,
the private division assumes a key part in offering quality public insurance administrations. The public insurance
segment has been organized in a manner that it gives a fundamental stage to medicinal services administrations
to each subject with particular treatment offices gave at public and private associations, which work restorative
offices (Mitchell, 2009).
3. Methods
This study used a descriptive approach by relying on previous studies developed to discuss the success of health
insurance for citizens through Hospital Privatization in Saudi Arabia and review the most successful hospital
privatization in US, despite the importance of health insurance for Saudis citizens; however, a small number of
researchers discussed this issue, and based on the researcher knowledge most of the researchers, who spoke on
this subject of the relation between the success of health insurance and Hospital Privatization throughout the
world in general and especially in Saudi Arabia were very few and old, and the most prominent of these studies
are:
Mckell Institute (2014) explored the possession structure of the health framework and distinguished that
privatizing Public resources is a business full of danger, particularly when it identifies with medicinal services. It
highlighted the requirement for more prominent thought by policymakers of the dangers identifying with the
privatizing of public hospital and doctor’s facility administrations. It additionally basically inspected a variety of
contextual analyses from prior privatizing endeavors as some of them fruitful and others not, and has established
that privatizing endeavors have once in a while possessed the capacity to convey on their indicated advantages
for citizens, government and particularly patients. This report highlighted discoveries by the Productivity
Commission which showed that public hospital in New South Wales and Victoria are more cost proficient than
their private partners by more than 3% and 4% separately. This is in spite of public hospital working in far more
noteworthy numbers in rustic and provincial regions (customarily significantly more costly to benefit) and
regardless of their high-cost obligation regarding giving mischance and crisis room administrations.
Notwithstanding some hospitals services are more proficient when given by the private part, the critical dangers
highlighted by before privatization endeavors ought to be sufficient to make any legislature deliberately rethink
the implied benefits of privatization inside the hospital system. This report additionally inspected a late pattern in
healing facility possession structures and the distribution of obligations inside secretly run however freely
claimed hospitals. This report noticed a concerning pattern in which private administrators can pick and choice
just the most beneficial administrations to run, leaving people in general part the unenviable job of undertaking
the additional unnecessary and troublesome work. This permits private administrators to catch an extensive offer
of working income while presenting citizens to more serious danger and higher expenses. This report
additionally inspected a late pattern in hospital ownership structures and the assignment of obligations inside
secretly run however freely claimed hospital.
Furthermore, the administration of Saudi Arabia has given high need to the improvement of human services
administrations at all levels: essential, auxiliary and tertiary. As a result, the reliability of the Saudi populace has
significantly enhanced in late decades. Nevertheless, the most obstacles face Saudi health system are a
deficiency of Saudi health experts, the health service’s numerous parts, restricted money related assets, changing
examples of malady, appeal coming about because of free administrations, a non-appearance of a national
emergency administration arrangement, poor availability to some human services offices, absence of a national
health data framework, and the underutilization of the capability of electronic health systems (Almalki,
FitzGerald and Clark, 2011).
On the other hand, Al-Qudah (2011) exhibited audit of medical insurance circumstance in Jordan – opportunities
it gives, the difficulties it countenances and it raises concerns. A discourse of the ramifications of privatization of
insurance on health part from different points of view and how it will shape the character of their human services
framework is additionally undertook. According to several number of the past study related to this issue, it was
found that Jordan government mindful of working through Ministry of Health resolved to give sponsored health
administrations to all natives, whether they are secured by umbrella of medical insurance or not, it likewise
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
186
assessed around up to 54% of aggregate populace are not secured by umbrella of medical insurance, but rather
with access of health administration as financed health gave by hospitals and health focuses. This study
concluded that both medical insurance parts highlighted a basic requirement for strategy plan and evaluation ,
unless privatization and the advancements of health care insurance seen is overseeing great then just it or may
have aggressive effect of conveying public insurance particularly to a huge section of populace in the nation at
high caliber and as per fulfilling people groups needs of having better than average administration then it can
enhance the entrance of straightforwardness consideration to all in this way thinking about the overall health
status in the nation quickly. Jordanian medical insurance situation not the same as different fragments of other
insurance business as more mind confusing, on account of its genuine clashes emerging out of unfavorable
determination, moral risk, and data hole issues. For instance, encounters from different nations recommend that
the passage of private firms into the medical insurance area, if not legally controlled, has unfriendly results for
the expenses of consideration, value, purchaser fulfillment, extortion and moral guidelines.
Otherwise, Saudi Arabia has encountered high expenses alongside worries about nature of consideration in its
public services. To address these issues the country is presently rebuilding their public insurance framework to
privatize public hospitals and existing insurance scope for both foreign staffs and citizens. The progressions give
a fascinating and smart case for the difficulties in profoundly changing a country’s medicinal services framework.
The circumstance likewise exhibits a one of a kind case in the Middle East for more noteworthy dependence of
the private segment to address quickly heightening human services costs and breaking down quality. The many-
sided quality of changing a social insurance framework is directed to numerous difficulties connected with the
change, for example, organization of the health power, absence of capital and human asset obtaining
coordination, quick increment in health uses, and the method for repayment, expanding competition, and
endeavors at controlling costs (Walston, Al-Harbi, and Al-Omar, 2008).
Differently, Sekhri and Savedoff, (2005) looked into universal encounters and demonstrated that private medical
insurance is noteworthy in nations with generally diverse salary levels and health framework structures. It
differentiated private medical insurance crosswise over areas and highlighted nations with especially high rates
of private uses. It was found that in the African nations, private insurance covers a generally little share of the
populaces, notwithstanding speaking to a huge offer of aggregate consumptions. Dissimilar with the Sub-
Saharan nations, have the Latin American nations had much bigger private medical insurance markets. In Chile,
the part of private insurance in health financing is express and permits the individuals who can manage the cost
of it to ‘quit’ of the freely subsidized health framework and purchase private spread. By divergence, Brazil’s
private medical insurance market developed in spite of public approaches went for setting up an all-inclusive
freely financed health framework. In both Chile and Brazil, private safety net providers rose with moderately
light direction, yet since the late 1990s, as a consequence of business sector disappointments, the administrations
of both nations have been attempting to force more stringent controls on the operations of back up plans.
Otherwise, the United States is the main rich nation to depend on intentional private insurance to give scope to
the vast majority of its people. This study concluded that strategy producers need to defy the part that private
medical insurance will play in their health frameworks and direct the segment properly with the goal that it
serves public objectives of widespread scope and value.
3.1 The most successful hospital privatization in US
3.1.1 Columbia/HCA: The Most Fruitful
The successful models of health insurance in US privatization hospitals about government and state
examinations of the moral and charging practices of Columbia/HCA⎯the country’s biggest hospital chain, with
338 healing facilities and incomes of $20 billion dollars⎯were front page news amid the late spring and fall of
1997. Columbia/HCA CEO Richard Scott, who assembled the organization through forceful acquisitions, was
required to leave by the organization’s Board of Directors. Board Vice Chairman Thomas Frist Jr., M.D. assumed
control as CEO and refocused the organization on its interior operations, which implies much slower, if not
stagnant, organization development for quite a while. As of December 1997, the aftereffects of the progressing
government and state examinations were still obscure (Lagnado, Sharpe and Jaffe 1997). The State of Alabama
did, be that as it may, give Columbia/HCA a spotless report taking into account state reviews led in August and
September (Reese, 2014). News reports have concentrated on government charges of untrustworthy practices, for
example, Columbia/HCA’s system of making specialists “accomplices” by giving them an offer of the benefits
they created. Contingent upon one’s perspective, these impetuses are either exemplary free-advertise private
enterprise that drive productivity enhancements, or an irreconcilable circumstance. The fact of the matter is
disputable now—Columbia/HCA’s board requested the practice ended. There have additionally been allegations
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
187
that a few Columbia/HCA healing centers put cost-cutting in front of value, along these lines imperiling tolerant
consideration. Such allegations, which are completely taking into account periodic data, run counter to more
thorough free assessments. For instance, 23% of Columbia/HCA offices are authorize with honor by JCAHO, the
free healing center audit organization, against a national normal of just 4% at all hospitals (Lagnado, Sharpe and
Jaffe 1997). Such an acclamation rating shows prevalent quality at these Columbia offices.
3.1.2 University of Cincinnati Medical Center (UCMC)
The Community Health Needs Assessment (CHNA) is a necessity of all expense absolved (501(c) (3)) hospitals
starting with financial year 2013. As a component of the Internal Revenue Service Form 990, Schedule H,
separately authorized not-revenue driven hospitals are required to evaluate the health needs of their group,
organize the health needs, and create execution gets ready for the organized health needs they have tended to
University of Colorado Health (CU Health) has been working with Truven Health Analytics (in the past the
Healthcare Business of Thomson Reuters) since October 2012 on finishing the CHNA for four of the UC Health
offices: University of Cincinnati Medical Center, West Chester Hospital, UC Health Surgical Hospital and Drake
Center. Truven Health utilized inpatient information to characterize the group served for the UC Health hospital.
Except for UC Health Surgical Hospital, the group served for every clinic was characterized as the areas that
include up to 80% of inpatient releases. UC Health Surgical Hospital imparts a group served definition to West
Chester Hospital given shared operations (University of Colorado Health (UC Health), 2013).
3.1.3 Oklahoma Medical Center
The University of Oklahoma Medical Center (OU Medical Center) in Oklahoma City, Oklahoma, is the biggest
hospital in the state, with a sum of 784 beds in three clinics. Late redesigns inside the current impression looked
to enhance the patient environment—especially in the Cardiac Catheterization and Electrophysiology Labs, and
in addition the Neurosciences and Transplant Intensive Care Unit (ICU). The office serves forty-eight Oklahoma
Counties and two areas in North Central Texas (Wilbarger and Wichita) with a veteran populace of more than
225,000 (Oklahoma City VA Medical Center, (OCVMC) (2009) Oklahoma Tax Commission, Oklahoma
Resources Integration General Information Network System (ORIGINS), and the Bureau of Economic Analysis
show that 22.5% of the salary in the Tulsa metro zone is spent at foundations that gather deals charge inside the
Tulsa metro territory. Given that the aggregate salary effect of the OSUMC is $121.3M, the retail deals catch
proportion recommends that $27.3M of that is spent on retail deals locally. The state gathers charge on that cash
(4.5%), which infers that the monetary movement produced by OSUMC is giving over $1.2M to the state’s
financial plan every year. Correspondingly, Tulsa area acquires an offer of the cash spent on retail deals (0.85%),
proposing that OSUMC contributes of $200K to the region spending plan every year (Whitacre, Brooks and
Landgraf, 2013).
See table 1, which shows the recent hospital privatizations in US, and table 2, which shows the benefits and
obstacles of these hospitals.
4. Results
According to the studies above related to the success of health insurance for Saudis citizens: hospital
privatization in Saudi Arabia, it can be concluded that the country that wants to privatize its health system, it
must take an effective strategy producers to direct the part that private medical insurance will play in their health
frameworks and direct the segment properly with the goal that it serves public objectives of widespread scope
and value by using descriptive method based on reviewing the past studies related to this issue. Moreover, some
studies have compared between group of countries that intended or made the privatization of hospitals, which
found that US included the most successful hospital privatization through corporation health insurance. Two
previous studies determined some of the obstacles that may face Saudi Arabia, such as organization of the health
power, absence of capital and human asset obtaining coordination, quick increment in health uses, and the
method for repayment, expanding competition, and endeavors at controlling costs, as well as, a deficiency of
Saudi health experts, the health service’s numerous parts, restricted money related assets, changing examples of
malady, appeal coming about because of free administrations, a non-appearance of a national emergency
administration arrangement, poor availability to some human services offices, absence of a national health data
framework, and the underutilization of the capability of electronic health systems. In order to success and
effectively apply the program of health insurance for Saudis citizens through hospital privatization in Saudi
Arabia, it must overcome these obstacles.
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
188
Table 1: The recent hospital privatizations in US, source: Tradewell, 1998
Jurisdiction Hospitals Privatization Type of Privatization
Hospital complete
(Privatization)
University of Cincinnati Hospital. Conversion to nonprofit.
Oklahoma Medical Center JOA between State and Columbia/HCA
Spalding Regional Hospital
Sale to Tenet; 15 year option buy-back
Boston City Hospital Conversion to nonprofit
Washington, D.C. General Hospital Conversion to nonprofit
Northwest Mississippi
Regional Medical Center Lease to Health Management Associates
Wake County Medical Center, NC Sale and conversion to nonprofit
Brackenridge Hospital, TX Long-term lease to Seton Health Care
Desert Hospital, Palm Springs, CA Conversion to nonprofit; subsequent sale to Tenet and conversion to for-profit.
Edge Regional Medical Center, Troy, AL Sale
Sale to Universal Healthcare Systems Sale to Universal Healthcare Systems
Sequoia Hospital, Redwood City, CA Joint Venture Agreement with Catholic Healthcare West
Fallbrook Hospital, Fallbrook, CA Leased (30 years) to Columbia/HCA
West Contra Costa Health Care District, Richmond, CA.
Sale to Tenet.
Conroe Regional Medical Center Sale to Health Trust/Columbia
Hospitals proposed or in progress (Privatization)
Eden Medical Center, Castro Valley, CA Joint Venture with Sutter Health (to close 1/98).
Parrish Medical Center, Titusville, FL
Los Angeles County (2 hospitals)
New York City (2 or 3 hospitals)University
of California (San Francisco teaching hospitals)
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
189
Table 2: The main benefits and obstacles of hospital privatizations in US, source: Tradewell, 1998
Options Benefits Obstacles
Sell the hospital
Pay off Public bonds . Increase new capital for poor consideration trust store. Increase new capital for other public administration. purposes. Decrease hospitals obligation costs. Decrease compensation and representative advantage costs. Increase extra assessment income for group. Decrease neighborhood charge rate. Expand nurture indigents. Grow essential consideration.
Public representative union restriction . Conceivable people group resistance to saw loss of public foundation . Trouble of deciding honest worth Seen loss of direct control . Seen pointed notoriety for public
Lease the hospital Diminished people group resistance . In advance capital embodiment. (Accept 30-to 40-year least). Hold some control. All different advantages apply.
Some public representative restriction . To some degree decreased measure of capital . Decreased control.
Form a joint-venture or JOA partnership
All advantages apply. May require uncommon state enactment.
Shed the service. Re conveys area to its most astounding and best utilize. Open and union resistance; open hearings;
aggressive offers.
Contract out: community-wide competitive bidding
Makes rivalry among suppliers to serve uninsured patients.
No obvious impediments.
Restructure or outsource
Lessened pay and advantage costs. Lessened assessment rate . Reasonably streamlines bureaucratic structure . May put private security net clinics indanger.
Some open representative restriction . Open representative restriction Holds moderate government choice structure Generally easy to execute.
The National Transformation Program 2020 has been created to satisfy Saudi Vision 2030 by setting up key
destinations and distinguishing the activities vital for accomplishing particular meantime focuses in 2020. Saudi
Vision 2030 is a massive privatization and financial change program that expects to reposition the Kingdom’s
economy far from its reliance on oil send out incomes and Government spending. It includes vital destinations,
targets, results situated markers and responsibilities that are to be accomplished by general society, private and
non-benefit divisions in the Kingdom Project (Development and Finance, 2016). See table 3, which shows goals
of the Saudi vision 2030.
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
190
Table 3: Goals of the Saudi vision 2030, source: Saudi-US Trade Group 2016
5. Discussion
The steady increment in the interest for medicinal services and the decline in the contribution of the private part
have made the Saudi government devise an assortment of measures that fund of the public insurance division in
the nation. The government has established insurance arrangement changes and measures that can urge the
private division to work intimately with the administration. Insurance changes require businesses (organizations)
to get private medical insurance for their representatives. The usage of the approach has confronted a heap of
difficulties in light of the fact that there are no compelling insurance controls. What’s more, the insurance
business is comprised of a predetermined number of organizations (International Business Publications (IBP),
2007).
The insurance arranges that are offered by insurance agencies restrict the expense of treatment in a given year.
The insurance agencies have diverse insurance gets ready for different arrangements of people and associations.
People and associations need to purchase a particular insurance arrangement as per their needs. As a rule,
associations are required to record the quantity of insurance arrangements on a yearly premise. People have the
alternative to storing reserves on a month to month or a yearly premise. At whatever point the requirement for
medicinal services administrations emerges, people or workers visit one of the healing facilities or centers that
are on the rundown gave by a specific insurance agency (O’Kane, 2011).
Private medical insurance is presented by willful and benefit reasonable scope. As of now, the Saudi Arabian
government is subsidizing public insurance capital and working costs. In any case, the administration will not be
in a position to take care of the rising demand for medicinal services benefits and has conceived a solid
institutional framework and viable administrative structure to advance private segment interest in public
insurance. The private segment gives consideration to way of life illnesses that are at present expanding among
the Saudi populace (Ahmad, 2012).
The Kingdom’s examination of hospital privatization with medical insuranceis moderately new and loaded with
difficulties. Thus, it must to study and examine this issue carefully in order to make health insurance for all
Saudis Citizens successful and effectively. Such as Takaful medical insurance in Saudi society, which
contributed generally direct positive effect on specific divisions of Saudi economy, in particular insurance
industry, private human services business and employment market(Barakah, D. M., and Alsaleh, 2011). Be that
Theme Goals Today 2030
A Thriving Economy
Private part commitment (% of GDP) Logistics Performance Index (Rank) Non-oil sends out (% of non-oil GDP) Open Investment Fund resources (SR billion) Worldwide Competitiveness Index (Rank) Yearly FDI inflows (% of GDP) Household yield of the oil and gas area (% of aggregate) The Kingdom’s GDP size (Rank) Saudi unemployment rate (% of Saudi work power) Female work power cooperation rate (% of working-age females) SME yield (% of aggregate GDP)
40 49 16
600 25 3.8 40
19th 11.6 22 20
65 25 50
7,000 10 5.7 75
Top 15 7
30 35
A Vibrant Society
Number of all inclusive perceived Saudi urban areas Social Capital Index (Rank) Normal future (Years) Multiplying the quantity of Saudi legacy destinations enlisted with UNESCO Family unit spending on society and amusement (% of aggregate) Individuals practicing in any event once every week (% of aggregate) Number of Umrah visitors per year (Million pilgrims)
0 26 74
–
2.9 13 8
3 10 80
– 6
40 30
An Ambitious Nation
Family investment funds (% of family pay) Non-benefit yield (% of aggregate GDP) Number of volunteers every year Non-oil government incomes (SR billion) Government Effectiveness Index (Rank) E-Government Survey Index (Rank)
6 <1.0
11,000 163 80 36
10 5
1 million 1,000
20 Top 5
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
191
as it may, a few negative fallbacks likewise happened which call for reexamining other extra answers for
subsidizing medicinal services administrations. Therefore, Barakah and Alsaleh, (2011) stated that the generally
short encounters of the Saudi health division showed the firm need to an extensive general medical insurance.
With the admiration to Takaful insurance division , their opinions is that the utilization of supportive medical
insurance respectable standards can help with lessening social insurance cost on the off chance that this part is
re-organized and directed.
As, talking at the symposium entitled “Medical Insurance Conference – Options and Prospects” wrote by the
Ministry of Health on 2011, the Saudi Minister of Health pointed out that the fundamental point of applying
supportive medical insurance in the Saudi kingdom is to enhance and build up the health part as per the sound
standards of Islamic religion and society without troubling the subjects, similar to the case in numerous different
nations. He likewise expressed that there ought to be more endeavors to distinguish the idea, the reasons and the
outcomes of insurance, to separate between business medical insurance and supportive medical insurance, and to
realize that the idea of insurance is not as a matter of course connected with the privatization of the health area.
The experience of created nations showed unmistakably that the usage of business medical insurance and the
privatization of the health area prompted expanding expenses of human services (Supportive Health Insurance
Council (2009).
References
Ahmad, A. (2012). Macro-environment Influences on Health Service Strategy in Saudi Private Sector Hospitals:
An Empirical Investigation. International Business Research, 5(5), 49-64.
Alkhamis, A. (2012). Health care system in Saudi Arabia: an overview.Eastern Mediterranean.Health
Journal, 18(10), 1078-1080.
Almalki, M., FitzGerald, G., and Clark, M. (2011). Health care system in Saudi Arabia: an overview/Aperçu du
système de santé enArabiesaoudite. Eastern Mediterranean health journal, 17(10), 784-793.
Al-Qudah, H. S. S. (2011). Hand in Hand with Jordanian Health Care Insurance: A Challenge of Improvements.
International Journal of Business and Social Science, 2(13), 111-121.
Barakah, D. M., andAlsaleh, S. A. (2011). The supportive insurance in Saudi Arabia: A nucleus to health reform
policy. In Proceedings of the International Conference on Information and Finance, Singapore.
Barrage, G., Perillieux, R. and Shediac, R., (2007).Investing in the Saudi Arabian Healthcare Sector. Booz and
Company, 2(1), 1-12.
Colliers International Healthcare Overview. (CIHO) (2012). Kingdom of Saudi Arabia Healthcare Overview.
CIHO, Dubai.
Gallagher EB. (2002). Modernization and health reform in Saudi Arabia, Chapter 4. In: Twaddle AC, ed. Health
care reform around the world. London: Auburn House, Pp.181–197.
Gulf Cooperation Council Office (GCC Office) (2009).Health Sector Report: Report for the GCC Region.
Ontario Ministry of International Trade & Investment – GCC Office 2 Jun 2009, Riyadh.
International Business Publications (IBP).(2007). Saudi Arabia Investment and Business Guide. Seattle, WA:
Int’l Business Publications.
International Monetary Fund (IMF).(2004). Health and Development.Retrieved on September 2, 2013 from:
http://www.imf.org/external/pubs/ft/health/eng/hdwi/hdwi.pdf
Lagnado, L., Sharpe, A., and Jaffe, G. (1997).How Columbia/HCA changed health care, for better or
worse.Washington: The Bioethics Research Library at Georgetown University.
Mckell Institute (2014). Risky Business the Pitfalls and Missteps of Hospital Privatizing .Sydney: Mckell
Institute.
Mitchell, J. E. (2009). Job Satisfaction and Burnout Among Foreign-trained Nurses in Saudi Arabia: A Mixed-
method Study. Ann Arbor, MI: ProQuest.
Mufti, M. H. (2000).Healthcare development strategies in the Kingdom of Saudi Arabia. New York: Kluwer
Academic/Plenum.
O’Kane, M. (2011).Doing business in Saudi-Arabia. Lexington: Al-Andalus.
Oklahoma City VA Medical Center, (OCVMC) (2009).Oklahoma City VA Medical Center 2008 Annual Report.
European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.8, No.18, 2016
192
Oklahoma: OCVMC.
Project Development and Finance (2016). Transforming Saudi Arabia: National Transformation Program 2020
Approved. Shearman And Sterling Llp14 June, 2016, Client Publication, London.
Reese, S. (2014). Federal Building and Facility Security: Frequently Asked Questions. 17 June 2014
Congressional Research Service, Washington.
Saati A. (2003). Privatizing of public hospitals: future vision and proposed framework. Al-Egtisadia Daily, 2
December 2003.
Saudi-US Trade Group(2016). Saudi Vision 2030. Jadwa Investment May 2016, Alriyadh.
Sekhri, N., andSavedoff, W. (2005). Private health insurance: implications for developing countries. Bulletin of
the World Health Organization, 83(2), 127-134.
Supportive Health Insurance Council (2009).Implementing Regulations of the Supportive Health Insurance Law
in the Kingdom of Saudi Arabia (Amended). Supportive Council for health insurance Session No. (73),
Ministerial Decision No. DH/1/30/6131 , 08/06/1430H.
The world health report (2000). Health systems: improving performance. Geneva: Word Health Organization.
Tradewell, R. L. (1998). Privatizing public hospitals: Strategic options in an era of industry-wide consolidation.
Madison: Reason Public Policy Institute.
University of Colorado Health (2013). University of Cincinnati Medical Center Community Health Needs
Assessment, 5 May 2013 CU Health, Colorado.
Walston S, Al-Harbi Y, and Al-Omar B. (2008).The changing face of healthcare in Saudi Arabia.Annals of Saudi
Medicine, 28(1), 243– 250.
Walston, S., Al-Harbi, Y., and Al-Omar, B. (2008).The changing face of healthcare in Saudi Arabia.Annals of
Saudi medicine, 28(4), 243-250.
Whitacre, B., Brooks, L., andLandgraf, C. (2013).The Economic Impact of the Oklahoma State University
Medical Center and Residency Program on the State and Regional Economies.Oklahoma: Oklahoma Supportive
Extension Service.
Yusuf, N., (2014). Private and public healthcare in Saudi Arabia: future challenges. International Journal of
Business and Economic Development (IJBED), 2(1), 114-118.
ا���ا ا������
.. وزارة ا����، ا����ضه1440- 1413ا ��� ا ��ا����� ).2015وزارة ا����. (