Health service to be partly privatised

External investment in the emirate's healthcare system is sought to help privatise some services.

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Abu Dhabi // The Government is seeking external investment in the emirate's healthcare system as it looks to privatise some services. "Privatisation allows us to depend less on publicly run institutions, which in the past have not been as efficient as possible," said Zaid al Siksek, chief executive of the Health Authority Abu Dhabi (HAAD), yesterday.

"Private institutions have shown strong capability in generating the kinds of financial systems that reflect the true cost of health care," he said at a healthcare investor summit in Abu Dhabi. Fifty private firms have filed applications to invest in the emirate's healthcare system, he said, but only four of those are expected to "move forward". Many of the investment proposals do not meet the needs of the people of Abu Dhabi, he said.

The authority has not specifically said which services it hopes to have taken over by private companies. It has indicated, however, that it is looking to award contracts to companies able to provide facilities ranging from full-service hospitals to home-based care. It has also said it is actively seeking investment in psychiatric services. Mr Siksek said that one of the problems facing the healthcare system was that small hospitals were unable to provide quality care at a reasonable cost because of their size, which could lead to duplication of some services.

Mr Siksek emphasised the need for hospitals to consolidate, creating large systems able to provide most services. "It's not primarily about spending more," he said. "It's about spending in the right way." Hospitals and clinics are also concentrated in parts of the city where they are not needed. "Facilities are not necessarily where the population is," said Dr Philipp Vetter, head of strategy at HAAD. "We're trying to put ourselves in the investors' shoes, saying how can you deliver value to the population profitably?"

HAAD officials stressed the authority would maintain an active role in overseeing the health care of Abu Dhabi and would not be handing responsibility to corporations. "We are all for competition, but competition in a controlled fashion," said Mr Siksek. "The goal must be to provide value for patients and not just lower costs." In Abu Dhabi the quality of care varies from hospital to hospital. The hope is that an influx of high-quality services will lure more health professionals to the emirate and improve the care available. Dr Finn Goldner, from HAAD's health insurance regulation department, said: "Building world-class facilities will attract people who want to be here to practise good medicine."

It will also help to incorporate more Emiratis into the healthcare professions where they are currently under-represented. "Many people, when it comes to health, like being treated by people who share the same background," said Dr Vetter. Private hospitals will have an advantage if they are able to hire national staff. This will create incentives for the hospitals to train and recruit Emiratis. The spirit of competition which the authority is relying on to increase health standards will also provide people with more choice. "The trend is that consumers will be more empowered," said Mr Siksek.

The present insurance scheme allows patients to seek treatment at private or public hospitals, and HAAD is able to use those statistics to determine the health of the medical sector. As investment in the region increases, patients will have more options to meet their health needs and better access to data to help make those decisions. "Money follows patients," said Dr Goldner. "If you have a better service delivery model you should see more patients." This could even reduce so-called medical tourism, as the number of people seeking treatment abroad is expected to decrease as the healthcare system improves.

"Private health care does not stop people from going abroad. Good quality health care stops them from going abroad," said Mr Siksek. "Rather than go to the Cleveland Clinic Ohio, why not go to Cleveland Clinic Abu Dhabi?" @Email:amcmeans@thenational.ae