All questions

The healthcare economy

General

The Council of Cooperative Health Insurance previously made it mandatory for all business owners to have medical insurance cover for their workers from the date of their arrival, and to hand them insurance cards within 10 days of their arrival in Saudi Arabia. According to the council's relatively new regulations, the insurance coverage becomes invalid only in the event of the beneficiary's death, cancellation or expiry of his or her insurance documents, or if he or she leaves Saudi Arabia on an exit-only visa. Married workers' medical insurance should cover pregnancy and childbirth. Article 7 of the Cooperative Health Insurance System also requires owners of private hospitals to provide medical insurance to their foreign workers.

The first stage of this compulsory insurance was introduced in 2006 and covered all workplaces with more than 500 people. This was followed by the next stage, introduced in the second half of 2007, which mandated all workplaces with fewer than 500 employees to also adopt the policy. Now, all companies with fewer than 500 employees that are renewing business licences must provide proof that expatriate medical insurance is available for all staff. This policy was a major shift in the Saudi market, although the main players in the industry – pharmaceutical companies, insurers and healthcare providers – are still at odds as to who benefits the most in the new landscape.

Eventually, all Saudi citizens will need to be covered by medical insurance, as the free medical healthcare programme is under stress from a large population with lifestyle diseases in an age of dwindling public resources. In preparation of the privatisation of public hospitals, Saudi Arabia is looking to create a form of insurance for those in the public sector.

The introduction of mandatory health insurance for expatriates, and insurance reform in general, has certainly shaken up the healthcare market in Saudi Arabia, providing a great amount of potential for pharmaceutical companies, laboratories, insurers and healthcare providers.

All Saudi Arabian insurance companies are required to be listed companies in Saudi Arabia. There are a number of insurance companies that are partly owned by foreign parties such as BUPA, Munich RE and AXA.

Primary / family medicine, hospitals and social care

Privately owned healthcare institutions, which offer treatment, diagnostic, laboratory, rehabilitation and nursing services (private healthcare institutions), are classified under the relevant regulations as one of the following:

  1. hospitals that are equipped to diagnose, treat and admit patients on an inpatient basis;
  2. general health centres prepared to diagnose and treat patients that offer at least three medical specialisations;
  3. specialised healthcare centres that focus on one medical speciality or more;
  4. physician office (clinics) prepared for treatment and diagnosis of patients;
  5. radiology centres for diagnostic imaging and radiology treatment;
  6. medical laboratories;
  7. same-day surgical facilities (i.e., ambulatory surgery centres) that are licensed to admit patients for minor and medium surgeries, provided that patients are discharged on the same day of admission;
  8. supporting medical services facilities that provide complementary medical and technical services and include: physical therapy centres, vision, nutrition centres, artificial limbs, or any other facilities that are classified as a supporting medical facility by the Ministry of Health; or
  9. medical transport services that include transport and first aid for patients before admission to hospitals in accordance with the standards and requirements of the Saudi Red Crescent Society.

The premises of all private healthcare institutions must be compliant with the medical and technical requirements historically designated by the Ministry of Health and must be equipped with the necessary medical equipment and furniture. In addition, a private healthcare institution must have appropriate systems for medical waste disposal, prevention of infection and medical records filing.

There is a wide range of both medical clinics and hospitals in Saudi Arabia. It is normally possible to obtain direct access to hospitals without the need for a referral.

There are strict data privacy laws that do not permit the storage of patient information outside Saudi Arabia without the written permission of the patient concerned.

There are some unusual approvals that may be required by a woman's husband or guardian prior to undertaking certain medical procedures. For example, a woman is required to obtain written permission from her husband or guardian prior to undertaking a hysterectomy, unless it is required in a life-threatening situation.

For certain procedures, it is common for Saudi Arabian nationals to obtain government approval and funding from the Ministry of Health for treatment outside Saudi Arabia. The United States and Germany are two of the most common destinations for treatment of Saudi Arabian nationals.