Creating a world class sustainable healthcare sector in the GCC

A.T. Kearney experts say integrated healthcare systems in the GCC are most suitable in the GCCentrepreneurship

Dubai (16th November 2009) —  As GCC countries continue to develop world class healthcare systems, they must avoid pitfalls of the developed markets, according to A.T Kearney, a global strategic management consulting firm.

The global health industry is worth around US$4.2 trillion and accounts for 10 per cent of the global GDP. It is an industry that has seen a steady growth year-on-year but according to experts is at a point of major change. The goal of access, choice, patient safety and equality for patients is increasingly hard to maintain in developed countries, as healthcare expenditure has been growing, leading to an ever widening funding gap.

“GCC countries currently spend far less on healthcare per capita than the western world, but disease patterns have started to mimic those of the west and that of other developed markets. It is therefore essential for the GCC countries to avoid replicating the healthcare systems set up in the west and move directly to an integrated healthcare model, where primary and secondary care, along with other healthcare players, work closely together to enhance quality of life and reduce the expenditure of each patient”, said Dr. Omar Sawaya, principal, A.T. Kearney Middle East.

While every healthcare system around the world is different, they all have evolved more by chance than by design (i.e. they are based more on history than fitness for purpose). They all share the same elements and are variations of several types of systems, namely those that are based on; taxation, competitive social funds, private sector provision and insurance (with a publicly funded safety nets), or a combination thereof. Governments, which fund the vast majority of healthcare spending, are looking to control costs but even they have limits. As a result, most keep doing what they’ve always done; trying to reduce demand, improve efficiency, take a more active role in care delivery and engage in system reform. Eventually, healthcare systems will converge to adopt a common set of characteristics.

One thing in common for sure is that most developed countries struggle to develop healthcare systems that can treat chronic diseases cost-effectively. One example where the GCC can build on key learnings from experts is the case of diabetes, which demands management through a controlled pathway. Care in the west has typically been fragmented leading to uncontrolled disease management which in turn leads to diabetic patients consuming 4-5 per cent of the health resources of non-diabetics.

Governments in the GCC have increasingly encouraged private sector participation both from local players and from international hospitals; for example, Saudi Arabia is currently assessing the possibility of outsourcing the management of 200 plus public hospitals.

“ The natural first step for the GCC is to take a look at primary care and define how best to offer and integrate primary care into the overall health care offering for various diseases. Based on this, all other supporting healthcare players will be able to define and further improve their role in creating a world class sustainable healthcare sector in the GCC,” concluded Dr. Sawaya

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About A.T. Kearney

A.T. Kearney is a global strategic management consulting firm known for helping clients gain lasting results through a unique combination of strategic insight and collaborative working style. The firm was established in 1926 to provide management advice concerning issues on the CEO’s agenda. Today, we serve the largest global clients in all major industries. A.T. Kearney’s offices are located in major business centers in 33 countries. During our 80 year history, we have provided management consulting services to most major corporations and governments around the world. From our fast growing Middle East offices in Abu Dhabi, Bahrain, Dubai and Riyadh, A.T. Kearney actively contributes to the operational excellence and profitable growth of industries and services in the region. For more information, visit www.atkearney.com.

About The Author

Dr. Omar Sawaya
Principal
Dr. Omar Sawaya is an A.T. Kearney principal and practice leader for Health Care and Pharmaceutical in the Middle East. He has many years of experience in Healthcare and Pharmaceuticals with key expertise in market access and entry strategies, commercial and trade channel strategies, operational turn around, and supply chain strategy.