Enhancing private investments in providing universal health insurance is essential, Prime Minister Mustafa Madbouli said this week while addressing the annual forum of the Universal Health Insurance Authority (UHIA).
The vision adopted by the government is that providing health services is not a luxury but a fundamental right for every citizen, Madbouli said. Real development can only be achieved when individuals enjoy a dignified and healthy life, in line with Egypt’s Vision 2030 and the UN Sustainable Development Goals (SDGs), he said.
Held under the theme of “Pioneering Private Investment for Sustainable Universal Health Coverage”, the forum aimed to boost public-private partnerships to encourage private investment in the healthcare system and accomplish comprehensive and sustainable health coverage for everyone.
During the first phase of the implementation of Egypt’s Universal Health Insurance System (UHIS) in six governorates, the cost of preparing and enhancing the efficiency of health facilities exceeded LE51 billion to cover six million citizens out of a total of 107 million, the prime minister explained.
He added that this demonstrated the expected future expenditure for implementing the remaining phases of the system to cover all citizens with healthcare services.
It is anticipated that approximately LE115 billion will be spent to implement the system among the six governorates in the second phase.
Currently, 54 per cent of health expenditure comes out of the patient’s pocket, Deputy Prime Minister and Minister of Health and Population Khaled Abdel-Ghaffar said. He added that the government covers 38 per cent of the cost and the rest is covered by non-governmental organisations and others.
“The government is making every effort to speed up the process of implementing the Universal Health Insurance System by 2030,” said the minister, adding that the system’s second phase will begin in July.
According to Abdel-Ghaffar, the full implementation of the system is extremely important for Egypt and its future because it will ensure fairness and non-discrimination in healthcare services.
“It is true that the percentage of healthcare expenses paid for out-of-pocket by individuals in Egypt is currently higher than the amount spent by the government. But the Government percentage is expected to increase over time due to the expansion of the system,” Abdel-Ghaffar said.
The UHIS was launched in July 2019 by President Abdel-Fattah Al-Sisi in Port Said to introduce a comprehensive healthcare system for 100 million Egyptians in accordance with international standards.
In February 2021, President Al-Sisi initiated the trial operation of the UHIS in three governorates as part of its first phase, officially launching the system in Ismailia, Luxor, and South Sinai.
Abdel-Ghaffar pointed to the importance of encouraging private investments in the healthcare sector, due to certain challenges, primarily population growth.
“Egypt’s bed capacity is still below global standards. While the international benchmark is 28 beds per 10,000 citizens, Egypt currently has only 12 beds per 10,000 citizens. There is a need to add thousands of hospital beds in the coming years,” Abdel-Ghaffar said, adding that a single hospital costs the government LE3 billion and requires private-sector investment.
He said that the government is committed to increasing the participation of the private sector in the development of Egypt’s healthcare infrastructure.
The share of private-sector hospital beds and facilities has increased significantly, reflecting its growing role in the healthcare system, Abdel-Ghaffar pointed out. The share of private hospital beds rose from 21 per cent in 2011 to 29.3 per cent in 2022, while private hospitals now account for 63.3 per cent of the total, up from 59 per cent in 2011.
“This growth highlights the rising confidence in private healthcare services and their contribution to meeting the increasing demand for medical care. The private sector also plays a crucial role in Egypt’s pharmaceutical market, accounting for approximately 82 per cent of total market share in recent years,” Abdel-Ghaffar said.
He also spoke about national healthcare projects implemented over the past 10 years, which have totalled 1,300 projects, including 20 projects in 2024 alone, with a budget exceeding LE35 billion across 11 governorates.
Abdel-Ghaffar pointed to legislative efforts made by the government to encourage private-sector investments by providing highly facilitated loans in coordination with the Central Bank of Egypt (CBE).
Further facilities include the public utilities concession law, which facilitates the establishment, management, operation, and development of healthcare facilities, as well as the Investment Incentives Model recently approved by the cabinet.
Ehab Abu Aish, vice chair of the board of the UHIA, stated that Egypt has achieved significant progress in the healthcare sector in recent years through health initiatives that have brought about a fundamental shift in disease control, expanded health protection for the most vulnerable groups, and led to the implementation of the UHIS.
This system is a great change in the management and financing of healthcare services, as it is based on the principles of solidarity and financial sustainability, he said.
“There are several challenges that still exist, including changing demographics, rising disease rates, and economic difficulties. Therefore, we must maximise the utilisation of all available resources to ensure the continuous development of the healthcare system,” Abu Aish added.
More than 27 per cent of private healthcare providers have joined the UHIS, thus reflecting the system’s success in gaining the trust of healthcare providers. “This public-private partnership plays a crucial role in achieving universal health coverage, adhering to quality standards that ensure the best possible services for all citizens,” he said.
The ministries of planning and finance are responsible for developing the necessary infrastructure to support the system, he explained, while the UHIA purchases healthcare services from both public and private entities.
The UHIA signed several cooperation protocols and agreements to strengthen strategic partnerships and enhance its services during the recent forum.
The agreements included a collaboration with the Ministry of Social Solidarity, E-Health, and E-Finance. This agreement enables the use of social support cards, such as Takaful and Karama welfare cards, to verify eligibility for healthcare services. It also facilitates data exchange to ensure accuracy and efficiency in delivering services to beneficiaries.
E-Health is an Egyptian technology and digital connector for the health, medical, and insurance sectors, and E-Finance is a digital operations provider that provides digital services for government payments.
Another cooperation agreement was signed with the National Bank of Egypt (NBE) and the Doctors Syndicate that supports healthcare providers by offering financial assistance for the purchase of medical equipment and supplies for clinics, medical centres, and hospitals wishing to join the system.
There was another support and operations agreement with E-Health to enhance the digital infrastructure of the system and improve the efficiency of healthcare-service management. This will ensure technological integration across various entities involved in the system.
Memorandums of Understanding (MoUs) were signed with healthcare firm B-Well Holding and health insurance provider Limitless Care. These aim to produce medical awareness content via the MedSolto platform, a medical platform connecting doctors to facilitate the sharing of experience and knowledge, to educate doctors and pharmacists about the UHIS, and to promote the integration of the healthcare sector into the system.
MoUs were also signed with GlobeMed, a private health insurance company, and Yodawy, a software company that offers medication delivery, management, and insurance services for patients, corporates, and health insurance companies.
The agreements focus on supporting digital transformation and developing a standardised digital model. They aim to enhance healthcare and pharmaceutical services through a unified digital framework, ensuring efficiency and consistency.
Several agreements were signed to enhance the skills and expertise of medical personnel with pharmaceutical companies AstraZeneca, Astellas, Roche, and AbbVie. These agreements focus on specialised training programmes and workshops in health economics, health technology assessment, the development of treatment protocols, service package components, and advancing payment systems.
* A version of this article appears in print in the 13 February, 2025 edition of Al-Ahram Weekly
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