Yemen’s health care industry: untapped potential [Archives:2007/1109/Business & Economy]
By: YemenTimes Staff
The increase in the number of hospitals from 121 in 2000 to 178 in 2005, with a 47 percent increase, indicates that there is an increasingly large demand for healthcare services in the country. Particularly in urban centers and the largest cities of Sana'a, Aden, and Taiz, the quality of hospitals has seen a substantial transformation, where specialized, fully equipped, and purpose built hospitals are competing amongst each others in the prices charged for health checkups, surgeries, and other medical procedures.
However, the public health sector suffers from serious drawbacks with regards to healthcare services provided. Including quality, availability, accessibility, and sustainability. The Health budget since 2002 is ranging from 4 -5.3 percent from the government budget, which is barely enough to finance the running operations of government-owned facilities.
In consequences, the third national plan for development and poverty reduction (2006 – 2010) relies on the role of the privet sector in the development of the health care services industry. The plan includes nine components relating to improving health care, ranging from basic health services and reproductive health to medical insurance. Partnership with the privet sector is at the core of the development of the healthcare industry, and in this report we examine that partnership through the largest privet sector investment in the Health care sector.
Yemen International Hospital
Member of the Hayel Saeed Group Board of Directors Mr. Shawqi Ahmed Hayel has described the group's most recent investment in the healthcare sector as a perfect fit with government policy and the directors of President Saleh. The group has recently finalized bidding out a purpose – built hospital costing an initial investment of US$ 25 million. The hospital will provide top-notch healthcare services including open-heart surgery, brain and nerve surgery, and a large number of complicated medial procedures that were, otherwise, not possible in the country.
He also stated that local staff have been extensively trained in order to make sure that they are capable, stating that foreign trainers and international expertise has been called at in order to help facilitate the training. He also stated that all furnishing, medical equipment, and systems are the most advanced technologies in the world and the very latest in the medical sphere.
He also added that the hospital will be managed with a famed India-based corporation – the Apollo Group, which has strong expertise in managing medical establishments in he region and beyond.
Shawqi concluded that the hospital will be inaugurated within a few months, and that its services will be of competitive pricing to be affordable for large segments of the society.
Medical Insurance
Inline with the third national plan, the government of Yemen through the Minister of Health and Population in cooperation with the Ministry of Legal Affairs is currently formulating the legal framework required to establish health insurance schemes, starting from a pilot program in selected locations and training of staff in order to manage health insurance programs. The government has also held discussions with the World Health Organization in order to receive technical assistance to manage the proposed healthcare insurance programs.
However, the privet sector has provided a number of healthcare insurance programs, for example Hayel Saeed Group is already providing health insurance for 11,000 affiliated employees in Taiz, with possible expansion to 20,000 with the inauguration of the Yemen International Hospital within the next months. While other hospitals in Sana'a and other cities have agreements with selected corporations to offer them exclusive health insurance packages, which are included among employee benefits. Selected Insurance companies also offer International Medical insurance packages, however, such packages are usually over priced for the affordability of the average Yemeni.
Healthcare: A mismanaged sector?
In a recent session in the parliament, The Minister of Healthcare and Population Dr. AbdulKarim Rase'e stated that his ministry fails in maintaining good monitoring for privet-sector healthcare providers, including privet sector hospitals, practices, and clinics. He stressed that the tiny budget of his ministry is barely enough to sustain the ministry's and government operations, including financing the operations of 50-odd government hospitals. He also stated that medicine subsidization programs are exhausting the budget, and whatever donor support they receive is usually focused in reproductive health and population growth issues.
The third national strategy emphasizes on the importance of facilitating healthcare services to the largest segments of the population, its objectives include building and equipping 798 clinics in rural Yemen and reforming the Ministry of Health of Population.
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