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THE GROWTH OF THE HEALTH
SECTOR IN THE REGION
Author: Dr
Abdulrazak Abyad
Correspondence: aabyad@cyberia.net.lb

Most Middle Eastern
countries have placed increasing emphasis
on improved health care during the past two
decades. Delivery of health care in the region
interrelates strongly with other factors,
such as food and nutrition, sanitation, water
supply, literacy, and income distribution.
In general, the government is the main provider
of health care, and social insurance is viewed
as a public responsibility.
The Middle East and
North Africa region is composed of a diverse
mix of countries, ranging from very poor
nations to wealthy oil exporting countries.
Public-private mix in financing and provision
of health services is important in the low-
and middle-income countries of the MENA
region, while the wealthier oil-exporting
countries tend to have National Health Service
systems
The countries in his
region can be divided into the following
groups:
- Countries typified
by substantial capital, rapid development,
and a small indigenous population, such
as Saudi Arabia, Kuwait, UAE, Qatar and
most Gulf states
- Countries with less
capital, more people, a quantitatively
larger medical infrastructure, and more
trained medical personnel, such as Lebanon
, Egypt, Israel, and Algeria.
- Countries whose extensive
medical service plans have been halted
or greatly decreased in scope because
of civil strife or war, such as Iraq,
and Iran.
The total population
in the Middle East region is 171,398,000
with a total annual budget of $13,026,821,445
from the Ministry of Health. The total expenditure
on healthcare including private hospitals
amounts to $36,524,663,000. The Middle East's
healthcare sector is expanding rapidly,
and it has an impact on both the economies
and the lives of the people of this region.
The estimated value of this sector is $74
billion, and this is expanding at 16 per
cent annually. The sector is emerging as
one of the fastest-growing and most attractive
markets for the world's hospital equipment
and services companies, according to executives
of the medical exhibitions and conferences
to be held in the region.
The region's healthcare
sector is witnessing major medical projects
within the Middle East, including Dubai
Healthcare City (DHCC) and the International
Medical Centre (IMC) in Jeddah. The reasons
behind this expansion are population and
the emergence of countries as potential
destinations for healthcare tourism.
In the Gulf according
to WHO the UAE is experiencing a population
growth of 14.1 per cent with an annual budget
$439,218,000 from Ministry of Health while
the total expenditure on healthcare is around
$2,879,318,000. Along with this trend, the
Dubai Health Care City has invested Dh350
million into its infrastructure and Phase
one of DHCC has already started. The other
countries in the Middle East, including
Saudi Arabia with a population growth rate
of 3.3 per cent has an annual budget of
$3,568,456,000 from its Ministry of Health
while the total expenditure on health care
is $9,572, 864,000. Qatar's statistics show
that the population growth is only 3.2 per
cent, while the Ministry of Health's annual
budget is $308,616,000 and the total expenditure
on health care is $413,952,000.
In response to growing
demand for a wider variety of dedicated
medical training programs, a number of international
medical schools have started programs in
the area. These include, Harvard Medical
International (HMI) which established a
post-graduate medical education and research
centre in Dubai in partnership with DHCC
and which will be opened in 2006. In addition
Cornell University has established a Medical
School in Qatar and the Irish college a
school in Bahrain.
The Middle East is an
emerging market with expenditure on health
care predicted to rise to new heights in
the next three years. With the private sector
growing fast, and health insurance spreading
into the market, there is a new focus on
quality to raise the level of medical care
provided in the region. The importance of
this market is further emphasized by the
latest World Bank figures detailing health
expenditure patterns in the region
Health Expenditure
Patterns - MENA Region
| Countries
|
Total
Health expenditures (%GDP) |
Public
Health expenditures (%of total health
expenditures) |
Health
expenditures per capita (Current $US) |
| |
Circa
2002 |
Circa
2002 |
Circa
2002 |
| Algeria |
3.8 |
74 |
62 |
| Bahrain |
5.2 |
71 |
430 |
| Djibouti |
7.0 |
60 |
56 |
| Egypt,
Arab Republic of |
3.8 |
47 |
38 |
| Iran,
Islamic Republic of |
5.8 |
41 |
96 |
| Jordan |
9.4 |
40 |
154 |
| Kuwait |
4.3 |
84 |
630 |
| Lebanon |
12.4 |
18 |
499 |
| Morocco |
4.4 |
34 |
56 |
| Oman |
3.5 |
83 |
222 |
| Qatar |
4.5 |
76 |
1,138 |
| Saudi
Arabia |
5.7 |
81 |
352 |
| Syrian
Arab Republic |
4.2 |
50 |
42 |
| Tunisia |
5.5 |
51 |
118 |
| United
Arab Emirates |
4.4 |
80 |
752 |
| West
Bank and Gaza |
8.6 |
57 |
122 |
Yemen |
4.9 |
43 |
20 |
| Regional
average of Health expenditure per capita
|
115 |
| Source:
World Bank Notes: All figures from WDI
Data with most years available Last
updated Oct.2003 |
Medical Technology
Medical facilities in
the region are relying more and more on
technological innovations that are pushing
medical facilities to higher levels of operational
sophistication. A number of important pharmaceutical
companiesy, are trying to establish a base
in DHCC. These include GlaxoSmithKline,
Johnson & Johnson, and Novartis Pharma
Services.
Market research is relatively
new in the area, but it is crucial for the
success of these new ventures and for promoting
new products. They usually include the following
objectives:
 |
Assess
the competitive marketplace into which
a product will be launched or in which
a product competes. |
 |
Demonstrate
the clinical, economic, and quality-of-life
values of a product relative to alternatives.
|
 |
Support
the positioning and pricing of a product.
|
The rapid development
over the past few years, of ever more sophisticated
medical equipment for diagnosis and treatment
has been breathtaking. This rapid development
is being transferred rapidly to the area.
Patients are benefiting from the rapid introduction
of technology. Even robots will be introduced
that will help doctors in the near future
in various elements and areas, like hospital
rounds, surgical work and others.
The Medical IT market
There has also
been rapid growth in the medical IT market
in the past few years. The new generation
of technology offers medical institutions
the opportunity to save time, reduce the
risk of medical errors, and offer higher
standards of care, and it is heartening
to see so many institutions in the region
in the first
wave of early adoption.
There is a move worldwide
towards computerised patient records and
the need to improve efficiency. Technology
companies, seeing a new pool of untapped
profits, are more than happy to help. The
Medical IT market is flourishing rapidly
in the area with a lot of interest in developing
a comprehensive computerized health information
system. A number of countries in the area
have already started the process, which
will take several years to complete. Electronic
medical records could substantially reduce
deaths each year due to medical errors.
Many of these fatal errors stem from simple
mistakes like the dispensing of wrong medicines
because of sloppy handwriting or delayed
treatments because of paperwork holdups.
Currently in the United
States it is estimated that less than 15
percent of doctors currently use high-tech
tools like electronic medical records or
electronic ordering systems for procedures
or drugs, according to government surveys.
The benefits that better technology could
bring to health care are a topic of discussion
everywhere from your local hospital to Governmental
officials. President Bush has made improving
health care technology a national priority.
He wants to spend millions on grants and
other incentives to establish a nationwide
health records system within 10 years that
would help doctors track and share information
on every U.S. citizen. Most industries in
the world have used information technology
to make their businesses more cost-effective,
more efficient and more productive, whereas
health care hasn't.
Numerous technology
companies are injecting themselves deeper
into the health care industry. Last month,
Intel created a new ''digital health'' division
and put a top manager in charge of it. Intel
is exploring everything from systems using
tiny radio transmitters that help hospitals
track patients and equipment to CD-like
''bio-discs'' that could contain a person's
health records and even blood samples.
Health Care System
The development and
implementation of critical healthcare reforms
and strong policy making processes, has
resulted in health systems that are more
effective, efficient, and equitable. Today,
health organizations must balance quality
care and accountability in an environment
of increased costs allied to limited resources
and funding. Healthcare policy comprises
the priorities, regulations, and administrative
framework of a healthcare system. Changes
in policy may reallocate resources among
levels of care, allow greater local participation
in care financing and provision decisions,
adopt more efficient payment systems, and
help ensure quality of care through appropriate
incentives and monitoring. If designed and
implemented correctly, these changes expand
access to healthcare, thus improving general
health and well-being. There is a need in
the region to using Careful and Creative
Analysis to Improve Policymaking. Additionally
we need quantitative and qualitative research
to provide policymakers with reliable information
about the effectiveness of existing policies
and potential strategies for action..
Health Care Reforms
Countries engaged in
health system reform often make significant
changes in the way health services are organized.
System reform may include decentralization,
which allows local governments, health facilities,
private sector health providers, and community
organizations to focus more on services,
such as primary and preventive care, hospital
care, incentives for health worker motivation
and supervision, and health policy and regulation.
Reform poses both challenges
and opportunities for health system policymakers
and managers who seek to prevent and treat
major threats to maternal and child health,
provide effective family planning and reproductive
health practices, and protect people from
the rapid spread of HIV/AIDS and other infectious
diseases.
Cultural Sensitivities
The involvement of non-Arab
firms in the healthcare sector is increasing
gradually. In addition, international agencies
can be expected to step up efforts to tackle
the problems of population growth and changing
patterns of disease emanating from demographic
transitions. As a result, the sensitivities
of Islamic and Arab culture towards issues
such as reproductive health, maternal and
child health, as well as sexually-transmitted
diseases, will become ever more evident
in the coming year. An understanding of
the roots of prevalent attitudes towards
health and the taboos that exist is becoming
increasingly crucial for the success of
both business ventures and international
aid agency efforts in the Middle East.
This will, in turn,
lead to a continuing growth in opportunities
for foreign private-sector firms in the
Middle East, and an extension of international
aid agency activities in the region.
In conclusion the health
sector in the region will continue to expand
in the future, in order for adequate preparation
there is a need for:
 |
Better
informed and more participatory policy
processes in health sector reform; |
 |
More
equitable and sustainable health financing
systems; |
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Improved
incentives within health systems to
encourage agents to use and deliver
efficient and quality health services;
and |
 |
Enhanced
organization and management of health
care systems and institutions to support
specific health sector reforms. |
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