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EMHJ  •  Vol. 17  No. 10  •  2011 Eastern Mediterranean Health Journal La Revue de Santé de la Méditerranée orientale

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Review

Health care system in Saudi Arabia: an overview M. Almalki,1,2 G. Fitzgerald 2 and M. Clark 2

ABSTRACT The government of Saudi Arabia has given high priority to the development of health care services at all levels: primary, secondary and tertiary. As a consequence, the health of the Saudi population has greatly improved in recent decades. However, a number of issues pose challenges to the health care system, such a shortage of Saudi health professionals, the health ministry’s multiple roles, limited financial resources, changing patterns of disease, high demand resulting from free services, an absence of a national crisis management policy, poor accessibility to some health care facilities, lack of a national health information system, and the underutilization of the potential of electronic health strategies. This paper reviews the historical development and current structure of the health care system in Saudi Arabia with particular emphasis on the public health sector and the opportunities and challenges confronting the Saudi health care system.

1College of Health Sciences, University of Jazan, Jazan, Saudi Arabia (Correspondence to M. Almalki: [email protected]). 2Faculty of Health, School of Public Health, Queensland University of Technology, Brisbane, Australia.

Received: 28/12/08; accepted: 05/01/10

نظام الرعاية الصحية يف اململكة العربية السعودية: استعراض حممد املالكي، جريي فيتز جريالد، ميشيل كالرك

والثانوية، األولية، الرعاية: مستويات مجيع عىل الصحية الرعاية خدمات لتنمية اهتاممها ُجلَّ السعودية العربية اململكة حكومة أْوَلت اخلالصة: نت بدرجة كبرية صحة السعوديني يف العقود األخرية. إال أن هناك عددًا من املشاكل التي تضع حتديات أمام نظام الرعاية والثالثية. ونتيجًة لذلك حتسَّ الصحية، مثل نقص العاملني الصحيني السعوديني، واألدوار املتعددة لوزارة الصحة، واملوارد املالية املحدودة، والتغري يف أنامط األمراض، والطلب املرتفع الناتج عن اخلدمات املجانية، وعدم وجود سياسة وطنية إلدارة األزمات، وضعف القدرة عىل الوصول إىل بعض مرافق الرعاية الصحية، وعدم وجود نظام للمعلومات الصحية الوطنية، وضعف االستفادة من إمكانيات اسرتاتيجيات الصحة اإللكرتونية. وتستعرض هذه الورقة التطور التارخيي والبنية احلالية لنظام الرعاية الصحية يف اململكة العربية السعودية مع الرتكيز عىل قطاع الصحة العمومية، والفرص والتحديات التي تواجه

نظام الرعاية الصحية السعودي.

Aperçu du système de santé en Arabie saoudite

RÉSUMÉ Le gouvernement d’Arabie saoudite a accordé une priorité élevée au développement des services de soins de santé à tous les niveaux : primaire, secondaire et tertiaire. En conséquence, la santé de la population saoudienne s’est grandement améliorée au cours des dernières décennies. Toutefois, le système de santé est confronté à de multiples défis tels que la pénurie de professionnels de santé saoudiens, les rôles multiples du ministère de la Santé, des ressources financières limitées, l’évolution des tableaux de morbidité, la forte demande générée par la gratuité des services, l’absence de politique nationale de gestion des crises, l’accès médiocre à certains établissements de soins, l’absence de système national d’information sanitaire et la sous-utilisation du potentiel des stratégies de cybersanté. Le présent article passe en revue l’histoire du système de santé saoudien et sa structure actuelle et met l’accent sur le secteur de la santé publique, les opportunités qui s’offrent à ce système et les obstacles auxquels il est confronté.

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Introduction

Health care services in Saudi Arabia  have been given a high priority by the  government. During the past few dec- ades, health and health services have  improved greatly in terms of quantity  and quality. Gallagher has stated that:  “Although  many  nations  have  seen  sizable growth in their health care sys- tems, probably no other nation (other  than Saudi Arabia] of large geographic  expanse and population has, in compa- rable time, achieved so much on a broad  national scale, with a relatively high level  of care made available to virtually all seg- ments of the population (p. 182).” [1]

According to the World Health Or- ganization (WHO) [2], the Saudi health  care system is ranked 26th among 190  of the world’s health systems. It comes  before many other international health  care systems such as Canada (ranked  30), Australia (32), New Zealand (41),  and other systems in the region such as  the United Arab Emirates (27), Qatar  (44) and Kuwait (45). Despite these  achievements, the Saudi health care sys- tem faces many challenges which require  new strategies and policies by the Saudi  Ministry of Health (MOH) as well as  effective cooperation with other sectors.

This review outlines  the historical  development and current structure of the  Saudi health care system. A particular em- phasis has been given to the public health  sector  that  is operated by  the MOH,  including the key opportunities and chal- lenges it faces. In addition, this review  highlights demographic changes and the  economic context of Saudi Arabia in rela- tion to the Saudi health care system.

Demographic and economic patterns of Saudi Arabia

The last official census in 2010 placed  the population of Saudi Arabia at 27.1  million, compared with 22.6 million 

in 2004 [3]. The annual population  growth rate for 2004 to 2010 was 3.2%  per annum [3], and the total fertility rate  was 3.04 [4]. Saudi citizens comprise  around 68.9% of the total population;  50.2% are males and 49.8% females [3];  67.1% of the population are under the  age of 30 years and about 37.2% are  under 15 years; the population over the  age of 60 years is estimated at 5.2% [5].  According to United Nation projec- tions, it is estimated that the population  of Saudi Arabia will reach 39.8 million  by 2025 and 54.7 million by 2050 [6].  This is a natural outcome of the high  birth rate (23.7 per 1000 population),  increased life expectancy (72.5 years  for men, 74.7 years for women) [4] and  declining mortality rate among infants  and children [1]. The under 5 years of  age mortality rate fell 250 per 1000 live  births in 1960 [7] to 20.0 per 1000 in  2009 [4]. Apart  from advancements  in health care and social services, these  improved statistics can mostly be at- tributed to the compulsory childhood  vaccination programme implemented  by the government since 1980 [7]. This  unprecedented growth will  increase  the demand for essential services and  facilities  including health care, while  at  the same time creating economic  opportunities.

Saudi Arabia is one of the richest and  fastest growing countries in the Middle  East. It is the world’s largest producer  and exporter of oil, which constitutes the  major portion of the country’s revenues  [8,9]. In recent decades, however, Saudi  Arabia has diversified its economy, and  today produces and exports a variety of  industrial goods all over the world. The  sound economy and well-established  industry base affects the Saudi commu- nity by increasing their income, leading  to a per capita income of US$ 24 726 in  2008 [10] compared with US$ 22 935  in 2007, US$ 14 724  in 2006, US$  13 639 in 2005 [11,12] and US$ 8140  in 2000 [13]. Based on 2010 informa- tion, Saudi Arabia is ranked at a high  level in the Human Development Index 

(0.75), which gives the country a rank  of 55 out of 194 countries [10]. The  improvement in the national income  is expected to impact positively on its  various services including the health  care services.

Brief overview of health services development

Health services in Saudi Arabia have  increased and improved significantly  during recent decades [14]. The first  public health department was estab- lished in Mecca in 1925 based on a royal  decree from King Abdulaziz [15]. This  department was responsible for spon- soring and monitoring free health care  for the population and pilgrims through  establishing a number of hospitals and  dispensaries. While it was an important  first step in providing curative health  services, the national income was not  sufficient to achieve major advances  in health care, the majority of people  continued to depend on  traditional  medicine and the incidence of epidemic  diseases  remained  high  among  the  population and pilgrims [15]. The next  crucial advance was the establishment  of the MOH in 1950 under another  royal decree [15]. Twenty years later,  the  5-year  development  plans  were  introduced by the government to im- prove all sectors of the nation, includ- ing the Saudi health care system [16].  Since then, substantial improvements  in health care have been achieved in  Saudi Arabia.

Current structure of health services

Currently the MOH is the major gov- ernment provider and financer of health  care services  in Saudi Arabia, with a  total of 244 hospitals (33 277 beds)  and 2037 primary health care (PHC) 

EMHJ  •  Vol. 17  No. 10  •  2011 Eastern Mediterranean Health Journal La Revue de Santé de la Méditerranée orientale

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centres [4]. These services comprise  60% of the total health services in Saudi  Arabia [4]. The other government bod- ies include referral hospitals (e.g. King  Faisal Specialist Hospital and Research  Centre), security forces medical serv- ices, army forces medical services, Na- tional Guard health affairs, Ministry of  Higher Education hospitals (teaching  hospitals), ARAMCO hospitals, Royal  Commission  for  Jubail  and  Yanbu  health services, school health units of  the Ministry of Education and the Red  Crescent Society. With the exception of  referral hospitals, Red Crescent Society  and the teaching hospitals, each of these  agencies provides services to a defined  population, usually employees and their  dependants. Additionally, all of them  provide health services to all residents  during crises and emergencies [16]. 

Jointly, the government bodies oper- ate 39 hospitals with a capacity of 10  822 beds [4]. The private sector also  contributes to the delivery of health  care services, especially  in cities and  large towns, with a total of 125 hospitals  (11 833 beds) and 2218 dispensaries  and clinics (Figure 1) [4].

The advancement  in health serv- ices, combined with other factors such  as improved and more accessible public  education, increased health awareness  among the community and better life  conditions, have contributed to the sig- nificant improvements in health indica- tors mentioned earlier. It has been noted,  however, that despite the multiplicity of  health service providers there is no coor- dination or clear communication chan- nels among them, resulting in a waste  of resources and duplication of effort 

[17]. For example, there are consider- able opportunities to take advantage of  equipment,  laboratories, training aids  and well-trained personnel from differ- ent countries. However, as a result of  poor coordination, the benefit of these  opportunities is limited within each sec- tor. In order to overcome this and to  provide the population with up-to-date,  equitable,  affordable,  organized  and  comprehensive health care, a royal de- cree in 2002 led to the establishment of  the Council of Health Services, headed  by the Minster of Health and including  representatives of other government and  private health sectors [18]. Although  the aim of the Council was to develop a  policy for coordination and integration  among all health care services authorities  in Saudi Arabia [19], significant progress  has yet to be achieved in this area [20].

Figure 1 Current structure of the health care sectors in Saudi Arabia (MOH = Ministry of Health) . Source of data: [4]

Employees &

their families

+

Emergencies

Armed forces medical services

Health services in the R oyal

Commission for Jubail & Yanbua

Red Crescent

Security forces medical services

National guard health affairs

% of hospital services provide by various health care sectors in

Saudi Arabia

59.5%

21.2%

19.3%

MOH Other Govt. Private

Emergencies

Referral hospitals

Teaching hospitals

School health units

ARAMCO health services

Saudi health care system

Govt. sector (free) Private sector (fee)

MOH (public)

Other agencies

All levels of health care

All levels of health care

All levels of health care

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Public health care system (Ministry of Health)

In accordance with the Saudi constitu- tion, the government provides all citi- zens and expatriates working within the  public sector with full and free access  to all public health care services [7,21].  Government expenditure on the MOH  increased from 2.8% in 1970 [18] to  6% in 2005 and 6.2% in 2009 (Table  1) [4]. According to WHO the total  expenditure on public health during  2009 was 5% of gross domestic prod- uct [22]. The MOH is responsible for  managing, planning and formulating  health policies and supervising health  programmes,  as  well  as  monitoring  health services in the private sector [23].  It is also responsible for advising other  government agencies and the private  sector on ways to achieve the govern- ment’s health objectives [16].

The MOH supervises 20 regional  directorates-general of health affairs in  various parts of the country [18]. Each  regional health directorate has a number  of hospitals and health sectors and every  health sector supervises a number of  PHC centres. The role of these 20 di- rectorates includes implementing the  policies, plans and programmes of the  MOH; managing and supporting MOH  health services; supervising and organiz- ing private sector services; coordinating  with other government agencies; and  coordinating with other relevant bodies  [23]. Figure 2 illustrates the organiza- tional structure and the relationship of  departments within the Saudi health care  system from the community to MOH  level. “Health friends” is a selective com- mittee consisting of useful and influential  community members, including repre- sentatives from PHC centres, who are  knowledgeable about common social  norms and the potential of the commu- nity. The essential role of this committee  is to liaise between PHC centres and the  communities they serve [24,25].

Levels of health care services The MOH provides health services at 3  levels: primary, secondary and tertiary  [4]. PHC centres supply primary care  services, both preventive and curative,  referring cases that require more ad- vanced care to public hospitals (the  secondary level of care), while cases  that need more complex levels of care  are transferred to central or specialized  hospitals (the tertiary level of health  care).

Transition to PHC services Until the 1980s, in line with the expecta- tions of population, health services in  Saudi Arabia were largely curative, em- phasizing the provision of treatment for  existing health problems [18,23]. The  curative care model, however, can be  costly to health providers, when many  diseases can be prevented or minimized  through developing a preventive strat- egy. A variety of preventive measures  were run by the MOH through former  health  offices  and  to  some  extent  through maternal and child health care  centres. A number of disease control  activities were performed by vertical  programmes, e.g. malaria, tuberculosis  and leishmaniasis control [18,23].

In accordance with the Alma-Ata  declaration at the WHO General As- sembly in 1978 [26], the Saudi MOH  decided to activate and develop the  preventive health services by adopt- ing the PHC approach as one of  its  key health strategies. Consequently, in  1980, a ministerial decree was issued to 

establish PHC centres. The first step was  to establish suitable premises through- out the country. Existing facilities lo- cated in adjacent areas were integrated  into single units. These included former  health offices, maternal and child health  centres and dispensaries. The health  posts in small and rural districts were  upgraded to PHC centres [18,23]. The  health centres aimed to focus on the 8  elements of the PHC approach: educat- ing the population concerning prevail- ing health problems and the methods of  preventing and controlling them; provi- sion of adequate supply of safe water  and basic sanitation; promotion of food  supply and proper nutrition; provision  of comprehensive maternal and child  health care; immunization of children  against major communicable diseases;  prevention and control of locally en- demic diseases; appropriate treatment  of common diseases and injuries; and  provision of essential drugs [24,25].

Focusing on a PHC strategy and  applying a logical referral system has  helped to reduce the number of visits  to outpatient clinics [23]. About 82%  of client visits to MOH facilities during  2009 were to PHC centres comprising  more than 54 million PHC clients [4].  The creation of individual and family  health records inside each PHC centre  has reduced duplication of consulta- tions. The use of the essential drugs list  and documentation of prescriptions in  patient health files has not only reduced  the costs of medications, but also im- proved prescribing practices.

Table 1 Budget appropriations for the Ministry of Health (MOH) in Saudi Arabia in relation to the government budget, 2005–09

Year Government budget (SRa) MOH budget (SR) %b

2005 280 000 000 16 870 750 6.0

2006 335 000 000 19 683 700 5.9

2007 380 000 000 22 808 200 6.0

2008 450 000 000 25 220 200 5.6

2009 475 000 000 29 518 700 6.2

Source: [4]. aUS$ 1 = 3.75 SR; bAs a % of the total government budget. SR = Saudi riyals

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In recent years, the MOH has con- tinued to develop the number of PHC  centres (Figure 3) and has initiated fur- ther projects aimed at developing health  care in general and PHCs in particular.  For example, the project of the Custo- dian of the Two Holy Mosques aims to  establish 2000 advanced PHC centres,  and to develop the existing ones in terms  of buildings, workforce and services.

Health services in the pilgrimage (hajj) season Saudi Arabia has a unique position in the  Islamic world, as it embraces the 2 holi- est cities of Islam, Mecca and Medina.  About 2 million pilgrims from all over  the world perform the hajj annually.  During the 2009 season, there were 2.3  million pilgrims, 69.8% of whom came  from foreign countries [4]. Hosting such  an event annually is a major challenge  that requires a planned and organized  effort across numerous agencies and  departments to ensure adequate essen- tial services, such as housing, transport,  safety and health care [21].

Health care services in the hajj season  provide preventive and curative care for  all pilgrims, irrespective of their nation- ality. Preventive care includes health  education programmes, vaccination  and chemoprophylaxis for all pilgrims  via quarantine services at airports and  land ports. The provision of emergency  and curative services takes place through  a network of health care facilities. For ex- ample, in 2009, there were 21 hospitals,  of which 7 were seasonal, with a total of 

3408 beds and 176 beds for emergency  admissions. There were also 157 PHC  centres, of which 119 were seasonal. On  average, each PHC centre treated 4734  pilgrims. The total workforce recruited  to work in these facilities during 2009  was 17 886; an increase of 5% on the  previous year. Of these, 69% were physi- cians, nurses and allied health personnel  [4]. On average, each physician treated  about 612 pilgrims, while each nurse  treated about 372.

Figure 2 Organizational structure of the Ministry of Health (public) health care system in Saudi Arabia. Source: [23]

2037

19251925 1905

1848

1986

1750

1800

1850

1900

1950

2000

2050

2100

2004 2005 2006 2007 2008 2009

N o

. o f

P H

C c

e n

tr e

s

Figure 3 Trends in the number of primary health care (PHC) centres in the Ministry

of Health in Saudi Arabia, 2004–09. Source: [4]

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Every year,  the Saudi health care  agencies, particularly the MOH, seek to  improve the health care services to pil- grims [21]. Nevertheless, the fact that all  the services are provided free of charge  for all pilgrims is creating considerable  pressure on the health care budget and it  may be necessary to seek ways to provide  better services at a lower cost. One sug- gestion is to introduce a seasonal health  insurance for all international pilgrims.

Challenges for health care reform

While many steps have been undertaken  by the MOH to reform the Saudi health  care system, a number of challenges  remain. These relate to the health work- force, financing and expenditure, chang- ing patterns of diseases, accessibility to  health care services,  introducing  the  cooperative health insurance scheme,  privatization of public hospitals, utiliza- tion of electronic health (e-health) strat- egies and the development of a national  system for health information.

Health workforce The Saudi health care system is chal- lenged by the shortage of local health 

care professionals, such as physicians,  nurses and pharmacists. The majority  of health personnel are expatriates and  this leads to a high rate of turnover and  instability in the workforce [27]. Ac- cording to the MOH the total health  workforce in Saudi Arabia, including all  other sectors, is about 248 000; more  than half of them (125 000) work in  the MOH [4]. Saudis constitute 38%  of this total workforce. Of these, 23.1%  are physicians, while 32.3% are nurses  (Figure 4). In the MOH, Saudis consti- tute about 54% of the health workforce,  (physicians 22.6% and nurses 50.3%).  The rates of physicians and nurses in  Saudi Arabia are 16 and 36 respectively  per 10 000 population, lower than in  other countries such as Bahrain (30 and  58 per 10 000), Kuwait (18 and 37 per  10 000), Japan (12 and 95 per 10 000),  Canada  (19  and  100  per  10 000),  France (37 and 81 per 10 000) and the  United States of America (27 and 98  per 10 000) [28].

The ability to formulate and ap- ply practical strategies to retain and  attract more Saudis into the medical  and health professions, particularly  nursing, is a clear priority for effective  reform of the Saudi health care system.  Many efforts have been taken by the 

government to teach and train Sau- dis for health professional jobs. Since  1958 , a number of medical, nursing  and health schools have been opened  around the nation to meet this goal  [7]. Apart from private colleges and  institutes, there are a total of 73 col- leges for medicine, health and nursing  as well as 4 health institutes in Saudi  Arabia [4]. Efforts to establish such  colleges are in accordance with train- ing programmes that aim to substitute  the largely expatriate workforce with  qualified Saudi Arabian nationals in  all sectors, including health [18,29].  The budget allocation for training and  scholarships has increased and many  MOH employees are offered a chance  to pursue their studies abroad [18].  This strategy could improve the skills  of current employees, raise the quality  of health care and, it is hoped, decrease  the rate of turnover among health pro- fessionals. However, these efforts may  not be enough to solve the challenges.  The proportion of Saudi Arabian health  professionals in the MOH workforce  is expected to decrease in the future as  the expansion in health care facilities  around the country has the effect of  spreading a scare resource even more  thinly [17,30].

0

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30

40

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60

70

80

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MOH Other govt. Private Total

% Physicians Nurses Allied health

Figure 4 Distribution of Saudi health personnel in the Ministry of Health (MOH), other government and private health care

sectors in Saudi Arabia, 2009. Source: [4]

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More realistic plans and long-term  strategies need to be consolidated by the  MOH in cooperation with government  and private sectors. A good example of  such cooperation is the King Abdullah  international scholarship programme  which was established by the Minis- try of Higher Education. In its stage  4, priority has been given to medical  specialists  including medicine, nurs- ing, pharmacy and other health majors  [31]. However, more medical colleges  and training programmes need to be  established around the country. New  laws and regulations to develop and  reorganize medical human resources by  the MOH are urgently required.

Reorganization and restructuring of the MOH The public health sector is overwhelm- ingly financed, operated, controlled,  supervised and managed by the MOH  [32]. This model of management may  not able to meet the population’s health  care needs into the future unless seri- ous and well-planned steps are taken to  separate these multiple roles. Possible  solutions include giving more authority  to the regional directorates, applying the  cooperative health insurance scheme  and encouraging the privatization of  public hospitals.

Decentralization of health services and autonomy of hospitals To meet  increasing pressure on the  MOH, more autonomy has been given  to the regional directorates in terms of  planning, recruitment of professional  staff,  formulating  agreements  with  health services providers (operating  companies) and some limited financial  discretion. It has been suggested that the  functioning of the regional directorates  is adversely affected by the lack of indi- vidual budgets and spending authority  [16]. Expenditure for the majority of  their activities must be authorized by  the MOH, thus affecting the autonomy  of regional directorates and hampering  effective decision-making.

In terms of hospital autonomy, the  MOH has tried a number of strategies  for improving the management of public  hospitals during past decades, including  direct operation by the MOH, coopera- tion with other governments such the  Netherlands, Germany and Thailand,  partial operation by health care compa- nies, comprehensive operation by health  care companies and the autonomous  hospital system [33]. Considering the  advantages and disadvantages of these  approaches, the MOH has standard- ized an autonomous hospital system for  31 public hospitals in various regions  [34]. The autonomous hospital system  for public hospitals is expected to raise  the efficiency of their performance in  both medical and managerial functions,  achieve financial and administrative  flexibility  through adopting a direct  budget strategy, apply quality insurance  programmes  and  simplify  the  con- tractual process with qualified health  professionals [33]. In 2009, the MOH  issued new regulations for self-operating  public hospitals to ensure a high level of  management practices and to improve  the quality of services provided [35].  Giving more autonomy to hospitals will  help the transition to full privatization of  public hospitals in Saudi Arabia. It gives  public hospitals more experience in the  management of their budgets, health  care quality and workforce.

Health insurance in Saudi Arabia Funding health care services is a central  challenge faced by the MOH [32]. Since  the total expenditure on public health  services comes from the government  and the services are free-of-charge, this  lead to considerable cost pressure on  the government, particularly in view of  the rapid growth in the population, the  high price of new technology and the  growing awareness about health and  disease among the community [14]. To  meet the growing population demands  for health care and to ensure the qual- ity of services provided, the Council 

for Cooperative Health Insurance was  established by the government in 1999  [19]. The main role of this Council is  to introduce, regulate and supervise a  health insurance strategy for the Saudi  health care market.

The  implementation  of  a  coop- erative health insurance scheme was  planned over 3 stages. In the first stage,  the cooperative health insurance was  applied for non-Saudis and Saudis in the  private sector, in which their employers  have to pay for health cover costs. In the  second stage, the cooperative health  insurance is to be applied for Saudis and  non-Saudis working in the government  sector. The government will pay the  cooperative health insurance costs for  this category of employee. In the final  stage, the cooperative health insurance  will be applied to other groups, such  as pilgrims [36]. Only the first stage  has been implemented to date, with  the cooperative health insurance being  implemented gradually  in a 3-phase  programme to employees of the private  sector and their dependants [14,37].  The first phase covered companies with  500 or more employees, while the sec- ond phase applied to employers with  more than 100 workers. The third phase  included employees of all companies in  Saudi Arabia as well as domestic work- ers [14,37]. The government  is now  working systematically to apply the re- maining 2 stages—for employees in the  government sector and for pilgrims— before they privatize the state-owned  health care facilities [14]. No informa- tion is available yet regarding the coop- erative health insurance scheme for the  population of Saudi Arabia other than  employees and expatriates.

While the market for cooperative  health insurance in Saudi Arabia started  with only 1 company in 2004, it cur- rently  involves about 25 companies.  The introduction of the scheme is in- tended to decrease the financial burden  on Saudi Arabia due to the costs as- sociated with providing health services  free-of-charge. It will also give people 

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more opportunity to choose the health  services they require [14]. The real chal- lenge for policy-makers in Saudi Arabia  is to introduce a comprehensive, fair,  and affordable service  for the whole  population.  Clearly  lessons  can  be  learned from the experiences of other  countries, including the advantages and  disadvantages of different schemes.

Privatization of public hospitals Privatization of public hospitals has been  seen by policy-makers and research- ers as the best way to reform the Saudi  health care system [38,39]. Steps to  implement a privatization strategy have  been initiated and related regulation  has been passed by the government. As  a result, a number of public hospitals  are likely to be sold or rented to private  firms over the next few years [14]. Priva- tization of hospitals is expected to bring  a number of advantages to the govern- ment and to the nation. It is hoped that  privatization will assist in speeding up  decision-making, reducing the govern- ment’s annual expenditure on health  care, producing new financial sources  for the MOH and improving health  care services [38].

On the other hand, privatization  may affect the current integrated system  between hospitals and PHC facilities  [14]. As hospitals become privatized,  they will focus on attracting patients,  even those who may not require hos- pital-level care. Moreover, people with  health cover may prefer to access big  hospitals directly instead of via PHC  centres or community hospitals. Ad- ditionally, private hospitals will have  incentives to shift non-refundable costs  back  to  the public PHC [14]. Such  practices will place financial burdens on  the government.

A further drawback of privatization  is that the traditional state/public hos- pitals will not be able to absorb enough  of the health care market compared  with private companies, unless  they  upgrade at all levels (e.g. management, 

infrastructure and workforce) before  starting to privatize [14]. In the move  to privatization, private companies are  likely to  focus their activities within  cities and larger communities, leaving  people in rural areas at a disadvantage.  The government should set regulations  that protect the rights of rural commu- nities and provide them with fair and  equitable health care services.

Finally, if the government does not ap- ply adequate control over the health care  market, expenditure on health care may  increase dramatically as a result of higher  pricing and profit-seeking behaviour [14].

Accessibility to health services Optimizing the accessibility of health  care  services  requires  equity  in  the  distribution  of  health  care  facilities  throughout the nation and equity of  access to health professionals, includ- ing transport to services and providers.  Accessibility is also affected by the level  of cooperation between related sectors  [23,39]. The current MOH statistics  indicate that there is a maldistribution  of health care services and health profes- sionals across geographical areas [4].  People experience long waiting lists for  many health care services and facilities  [14]. Additionally, there is a dearth of  services for disadvantaged groups such  as the elderly, adolescents and people  with special needs such as disability,  particularly in rural areas [39]. Finally,  many people do not have the ability to  access health care facilities, particularly  those living in border and remote areas.

In order to improve accessibility to  health care services in all parts of the  country, a holistic strategy for the redistri- bution of health care services, involving  PHC centres, general hospitals, central  and specialist hospitals as well as the  health professionals, should be adopted  by the MOH. The MOH should also  liaise with other sectors such transport,  water and power companies and social  security services in order to develop  services in deprived areas and to care for  people with the greatest needs.

Patterns of diseases The change in disease patterns from  communicable to noncommunicable  diseases  in  Saudi  Arabia  is  another  challenge that needs more attention  from the MOH [21]. There has been  an alarming increase in the prevalence  of chronic diseases, such as diabetes,  hypertension, and heart diseases, can- cer, genetic blood disorders and child- hood obesity [28,40,41]. Treatment of  chronic diseases is costly and may even  be ineffective [40]. For example, the  annual cost for treatment of diabetes  mellitus in Saudi Arabia was estimated  to be 7 billion Saudi riyal (SR) (US$  1.87 billion) [42]. Early prevention is  the most effective way to reduce the  prevalence of chronic diseases and the  costs and difficulties associated with  treatment in the later stages of disease.  Any projected reforms in the health care  system must involve plans to address  this change in emphasize.

Promotion and prevention programmes for crises Development  and  implementation  of practical plans and procedures to  meet national crises in Saudi Arabia,  such as wars, earthquakes and fires and  explosions at petroleum factories, are a  further important need. Road traffic ac- cidents, for example, killed more than 39  000 and injured about 290 000 people  between 1995 and 2004 [43]. Accord- ing to WHO, road traffic accidents are  now the highest cause of death, injury  and disability in adult males aged 16 to  36 years in Saudi Arabia [32]. Caring  for people affected by road accidents  consumes a significant proportion of  the MOH budget; for example, the cost  of treating injured people during 2002  was estimated to be SR 652.5 million  (US$ 174 million) [43]. These funds  could be used to develop the health  system and improve services. Plans to  manage issues of this kind need to be  comprehensive and well-coordinated  among the related sectors in order to be  achievable.

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Conclusion

As a result of the continued attention  to and support from the government, 

Saudi health services have advanced  greatly over recent years in all levels of  health services: primary, secondary and  tertiary. As a consequence, the health  of the Saudi population has improved  markedly. The MOH has introduced  many reforms to its services, with sub-- stantial emphasis on PHC.

Despite these achievements, health  services, and in particular public sector  health services, are still facing many chal-- lenges. These include: human resource  development; separation of the MOH’s  multiple  roles (financing, provision,  control and supervision of health care  delivery); diversifying financial sources;  implementing the cooperative health  insurance, privatization of public hos- pitals, effective management of  chronic  diseases; development of practical poli- cies for national crises; establishment of  an efficient national health information  system and the introduction of e-health.  In order to address these challenges and  continue to improve the status of the  Saudi health care system, the MOH  and other related sectors should coor- dinate their efforts to implement and  ensure the success of the new health  care strategy.

Acknowledgements

This paper is part of the first author’s  doctoral  research, supported by  the  government of Saudi Arabia.

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