October 28, 2024

New Law Empowers Private Sector to Overhaul Healthcare in Egypt

On June 23, 2024, Egypt enacted Law No. 87, marking a significant shift in the country’s healthcare landscape by allowing private sector involvement in the establishment, management, and operation of healthcare facilities. This legislation opens the door for both Egyptian and foreign investors to play a pivotal role in transforming healthcare delivery across the nation.

Under the new law, private entities can secure concession contracts to either create new healthcare facilities or manage and develop existing ones. Key provisions of the law include:

Concession Duration: Operators can manage the facilities for a minimum of three years and up to fifteen years, after which they must return the facility and its medical equipment to the state.

Public Access: A portion of services must remain accessible to citizens benefiting from state healthcare, health insurance, or the comprehensive health insurance system, ensuring that public health needs are prioritized.

Workforce Guidelines: Facilities are required to retain at least 25% of their existing staff. Additionally, foreign medical personnel can make up 15% to 25% of the total workforce, facilitating knowledge transfer and expertise sharing.

Equipment and Compliance: Operators must provide essential medical equipment and maintain compliance with existing healthcare laws and regulations, ensuring quality care standards.

Expertise Requirement: Investors must demonstrate the necessary expertise to run healthcare facilities effectively.

The concession contracts will be governed by the Public Contracts Law No. 182 of 2018, and they encompass a wide range of healthcare services, including surgeries, diagnostics, nursing, and emergency care. However, the law explicitly excludes family health units and blood and plasma collection services.

The Executive Regulations, issued through Prime Ministerial Decree No. 2856 of 2024, guarantee that citizens will continue to receive essential public health services, including preventative and outpatient care, free of charge during disasters and pandemics.

Furthermore, the Minister of Health will oversee the licensing of foreign medical staff, ensuring that only qualified professionals with relevant experience are permitted to practice in Egypt. Licenses will be temporary and aligned with the duration of those granted to Egyptian practitioners, focusing on areas where there is a shortage of local professionals.

As Egypt embarks on this new era of privatized healthcare, the implications for access, quality, and efficiency will be closely watched by both citizens and stakeholders in the healthcare sector. The success of this initiative hinges on striking the right balance between private investment and public health commitments, a challenge that could reshape the future of healthcare in the country.

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