Transforming Egypt's Healthcare: New Law Welcomes Private Investment for Better Medical Tourism

In a landmark move to enhance healthcare in Egypt and boost medical tourism, the Egyptian government has enacted a new law, approved by the House of Representatives in May, allowing private investors to manage and operate public hospitals for a period of three to fifteen years.

Key Features of the New Healthcare Law

Investment Opportunities:

• The law offers private investors the opportunity to manage public hospitals, contributing to the improvement of healthcare infrastructure and services.
• All medical facilities and equipment must be maintained in good and functional condition throughout the concession period.
• Upon the end of the concession, all health facilities, including medical equipment, revert to state ownership at no cost.

Employment and Services:

• Private investors must retain at least 25% of the current employees, protecting their financial and employment rights.
• A portion of the services must be allocated to beneficiaries of state-sponsored treatment services, ensuring that government health schemes and low-income citizens continue to receive affordable healthcare.

Regulations on Foreign Staff:

• The law restricts the employment of foreign medical workers to 15% in existing healthcare facilities and up to 25% in hospitals established by the private sector.

Exemptions:

• Primary healthcare centers, family health units, blood operations, and plasma collection are exempt from this law and remain governed by Law No. 8/2021.

Support and Concerns

Support for the Law:

• Mostaqbal Watan Party Spokesperson Abdel-Hadi Al-Qasabi emphasized that private sector involvement will enhance the quality of healthcare services.
• Minister of Health Khaled Abdel-Ghaffar highlighted that this law aligns with government efforts to attract private sector investment across various economic sectors, with measures in place to prevent price hikes and ensure service quality.

Concerns Raised:

• Doctors Syndicate Head Osama Abdel-Hay expressed concerns that the profit motive introduced by private management could make basic treatments unaffordable for ordinary citizens.

Safeguards and Termination Clauses

The law includes provisions allowing the government to terminate agreements if hospitals charge excessive fees or provide low-quality services, ensuring that the public's interest remains protected.

Conclusion

This groundbreaking law is expected to transform Egypt's healthcare landscape, attracting private investment, modernizing public hospitals, and positioning Egypt as a prime destination for medical tourism. By balancing investor involvement with robust safeguards, Egypt aims to offer world-class healthcare services while maintaining accessibility and affordability for all its citizens.

Source

https://english.ahram.org.eg/News/525959.aspx