Challenges of privatizing academic medical centers in Saudi Arabia and appropriate strategies for implementation

Abstract

PurposeA crisis in the financial sustainability of the public healthcare sector often compels governments to consider privatization. The purpose of this paper is to summarize various strategies to overcome the challenges facing the privatization of academic medical centers (AMCs) in Saudi Arabia.Design/methodology/approachIn this paper, the authors discuss the challenges faced in privatizing AMCs in delivering their core functions such as patient care, medical education and research. Further, the appropriate strategies are listed to overcome these challenges in privatization of AMCs.FindingsThe authors described the benefits of privatization that include a reduction in the financial burden on government healthcare expenditure, quick decision making and creation of new financial models to improve healthcare services. On the other hand, the profit motive of private management could create pressure on patients and may divert AMCs from their primary objectives. Therefore, it is imperative for the government to develop and implement appropriate strategies that balance the benefits of privatizing AMCs with eliminating the negative impact of privatization on patient care, medical education and research.Originality/valueThough AMCs privatization is currently feasible in Saudi Arabia, appropriate strategies are essential to overcome the challenges of its implementation. The government should frame a uniform rules and regulations prior to privatizing public hospitals so that it will fulfill the purpose in an efficient manner.

Autonomy, accountability, and competition: The privatisation of the Saudi health care system

“…Furthermore, due attention to stakeholders is necessary in health care reforms to understand how privatisation reforms unfold at micro-levels. 18 , 19 …”

“…The transformation of the Saudi health care system has resulted in a growing and recent interest in documenting the privatisation process through thematic analyses and systematic reviews. 19 , 28 , 29 , 30 These studies found that, at the macro-level, the Saudi government chose privatisation as a solution to address the fragmented, financially dependent, unsatisfactory and low-quality health care system. 29 , 30 The overwhelming dependence of the health care system on governmental funding is threatened by an unstable, oil-dependent national economy; thus, the government realised the need to privatise the health care system to reduce government expenditure and provide better health care services, especially with the emergence of new diseases, the growth of the Saudi population and the increase in the population's life expectancy.…”

“… 33 Hospitals adopting a profit-seeking behaviour along with increased out-of-pocket costs would accompany privatisation and would have implications on equitable access for the less advantaged and vulnerable population. 19 , 21 , 33 Thus, candid attention is required to eliminate the negative impacts of privatisation regarding increasing costs, profit-seeking behaviour and possible job loss. 19 …”

“… 19 , 21 , 33 Thus, candid attention is required to eliminate the negative impacts of privatisation regarding increasing costs, profit-seeking behaviour and possible job loss. 19 …”

The Privatization of Health Care System in Saudi Arabia

“…[95][96][97] Although Saudi Arabia has already witnessed partial privatization in its health care system, research suggests that such private sector engagement would stand off resources from the public sector, leading to increased social inequities and a rising burden of additional costs. 98,99 In a country like Saudi Arabia, where a sizable share (10%-20%) of its population lives below the poverty line, privatization cannot be seen as a one-stroke solution for ensuring the reasonable provision of health care to its growing population. 95 While the public sector remains vital in its role to finance and deliver health care, it also plays a crucial part in ensuring universal health coverage.…”