Investcorp white paper to help improve GCC healthcare industry
Paper offers six remedies, highlights key priorities
BAHRAIN: Investcorp, a leading global provider and manager of alternative investments, yesterday released its white paper which examines the GCC’s evolving multi-billion dollar healthcare industry, and offers recommendations on improving the operating environment, reducing costs and increasing opportunities across the industry’s value chain.
At the onset, the white paper titled, “A Health Prescription for the GCC”, identifies four areas of weakness in the region’s healthcare industry, namely, insufficient access and quality of care, the high cost of treatment of a relatively young population and the increasing burden of funding on GCC governments - the current primary spenders on healthcare in the region. Based on tried and tested models, global best practices and deep knowledge of the GCC’s healthcare industry, the paper offers six vital remedies and highlights key priorities to help improve it.
The paper recommends that the Gulf countries improve their wellness and prevention measures, for example, by promoting a healthy food and exercise regimen for their citizens and encouraging screening and health checks. Second, to help fill supply gaps with adequate care, there needs to be a focus on increasing the number of specialized facilities and improving the quality of services, by, for instance, partnering with experienced Western institutions.
Third, healthcare providers, such as hospitals and clinics, need to consolidate to benefit from economies of scale. Fourth, the paper stresses the importance of privatization to improve the overall healthcare system and infrastructure. Fifth, it recommends that governments try value-based care systems to incentivize good behavior and reduce costs. Finally, the paper emphasizes the need for greater cooperation between GCC nations and pooling of purchasing power and infrastructure
Commenting on the white paper Tristan de Boysson, Co-Head of Corporate Investment for MENA at Investcorp, said: “The GCC healthcare industry is undergoing a much-needed transformation, mainly driven by the pressure on governments to shift the burden of funding to the private sector and the rise of the patient as a ‘consumer’ of healthcare services. The change is creating plenty of opportunities, and the buildup of a more complete eco-system.”
Rabih Khouri, Managing Director, Corporate Investment MENA at Investcorp said: “Encouraging steps have already been taking place to help take the GCC healthcare industry to global standards. The magnitude of the transformation is highest in Saudi Arabia, where new regulations are being prepared as well as a substantial privatization program. I believe the transformation will considerably raise the standards of healthcare and better meet the population’s expectations.”