Reform of health services in Abu Dhabi fuelled by wave of privatisation

The General Authority for Health Services (GAHS) of Abu Dhabi has been busy reforming the country's medical sector since the authority's inception in 2001, and by divesting itself of 90% of its previously held operation of responsibilities, has set its primary focus on the regulation and licensing of the industry.

"We are moving forward with initiatives to make sure the private sector is the main provider of healthcare services of the emirate of Abu Dhabi. This strategy revolves around the quality, the access and provision of care that will be offered mostly by the private sector. The government will only do a small amount of this in remote areas and in preventative medicine," said Dr Ahmed Mubarak Al-Marques, Chairman, GAHS, in an interview with Oxford Business Group's (OBG) soon to be launched The Report: Abu Dhabi 2007.

"The biggest provider in healthcare today is the government. In Abu Dhabi, it represents over 55% of the market. We are bringing in the best international companies to manage our hospitals. The next step will be to privatise. We will be a regulator, bringing our hospitals up to international standards."

The decision by GAHS of Abu Dhabi to no longer directly provide the majority of medical services has opened the door for large investments in the sector - particularly for state-owned investment company Mubadala Development Corporation. As a result, a number of public hospitals have ceded administrative and operational functions to private enterprises.

Compulsory medical coverage is also expected to fuel the insurance industry as well as the growth of medical facilities as a new wave of newly insured patients will push demand.

In addition, the government's efforts to woo high-end medical providers have resulted in agreements with a growing number of blue-chip medical companies, such as Cleveland Clinic and John Hopkins Medicine, to set up operations in Abu Dhabi.

However, according to a statement issued by Sheikh Rahmatulah, a representative for the Middle East Tourism Authority, approximately 62,000 UAE nationals alone sought medical treatment in Thai hospitals in the first seven months of 2006, resulting in a large loss of revenue for local hospitals.

According to the OBG report, as more high-quality facilities are established and greater numbers of healthcare professionals are brought into the emirate, opportunities should invariably arise to turn the tide of medical tourism inwards.

One potential issue currently facing the development of the industry is the shortage of manpower. Reflecting current global trends, Abu Dhabi must compete with other nations in the search for qualified medical personnel. This problem is particularly acute in the Middle East, which lags significantly behind world leaders North America and Australasia in health-worker density.

According to a study conducted by the World Heath Organisation in 2006, the Middle East has only 4.66 health workers per 1000 people, compared to 41.7 in North America, 29.02 in Australasia and the Pacific Islands, and 19.32 in Europe. At around half the global average of 9.3, the Middle East leads only Asia (4.53) and Africa (2.17) in this particular category.

Sector insiders hope that the effects of the industry shortage will be minimised by the addition of world-class facilities in Abu Dhabi that could be used to lure foreign-trained medical staff - especially Arabs who have studied and worked abroad - to the emirate, and to keep patients at home as well.

"Recruitment is an issue in healthcare all over the globe. There is a global shortage in practitioners, in nurses, in paramedics and even in healthcare administrators. When we bring in specialist companies like John Hopkins and Cleveland, they have to bring their own people. They will help us with recruitment. We are spending a lot of money on training. In addition, there is an Emiratisation plan for training nationals," added Al-Mzarouei.