TERM REPORT ON

Healthcare Industry

Submitted by Alowe
As a course assignment under Human Resource

Term Paper on Healthcare Industry

HEALTHCARE INDUSTRY BY DEFINITION

Comprises of providers of diagnostic, preventive, remedial, and therapeutic services such as doctors,
nurses, hospitals and other private, public, and voluntary organizations. It also includes
medical equipment and pharmaceutical manufacturers and health insurance firms. (Definition/ Health
care industry , 2016)
THE U.A.E. HEALTHCARE INDUSTRY
The United Arab Emirates (U.A.E.) growing healthcare sector is actively expanding its national
healthcare system to meet the growing needs of its people and support economic expansion. The
U.A.E. has created an infrastructure of healthcare services recognized as on par with international
standards and the health issues that affect Emiratis today. The healthcare sector is among the 14 major
areas attracting large forms of investment in U.A.E. investment map.
The key drivers of this regions healthcare is due to the quick increase in the population and income of
UAE as well as movement towards a sedentary lifestyle. This inactive lifestyle coupled with fast food
has led to conditions such as obesity and diabetes and aging Emiratis are facing heart diseases and
cancer.
The healthcare market in the UAE is expected to grow by seven per cent during the period between
2015 and 2020, according to UAE Healthcare Sector Outlook 2020, issued by RNCOS. The UAE
remains one of the top countries in health spending per capita in the region. Owing to the growing
need for health services there is also a proportional increased demand for specialized medical

Term Paper on Healthcare Industry

professionals. A growing demand for infertility treatment and cosmetic surgeries which are the main
attractions for medical tourists.
All seven emirates provide healthcare services to their citizens and are rapidly building their
healthcare infrastructure inclusive of hospitals and clinics, while simultaneously developing their
local workforce. In the U.A.E., there are five government healthcare regulators: the Ministry of
Health (MOH), Ministry of Finance (MOF), Federal Health Insurance Authority, Dubai Health
Authority, and the Health Authority Abu Dhabi (HAAD). These entities regulate healthcare service
providers on the ground such as the Abu Dhabi Health Services Company (SEHA). These entities
often partner with foreign healthcare organizations to run the daily operations of hospitals and clinics
throughout the U.A.E. Private healthcare service providers such as the New Medical Centre are nongovernment run hospitals and clinics that provide specialty and full-spectrum care for the U.A.E.
population. Needless to say, these Emirati private sector initiatives, like New Medical Centre and Al
Noor Hospital, are very important to the U.A.E.s overall and long-term healthcare development.

U.A.E. Healthcare Entities Roles and Responsibilities

The Ministry of Health (MoH) is the federal authority responsible for unifying the U.A.E.s health
policies, developing a comprehensive, nationwide health service, and ensuring that healthcare
remains accessible across the country. The MoH is also the primary healthcare regulator in the
Northern Emirates. Whereas Emirate-run healthcare entities in Abu Dhabi and Dubai directly manage
their own emirates healthcare needs, the Northern Emirates do not have the necessary healthcare
infrastructure and rely heavily upon the MoH for administration and regulation. The Minister of
Health is H.E. Abdul Rahman Mohammed Al Owais and the Undersecretary is Dr. Mohamed Salim
Al Olama.

Term Paper on Healthcare Industry

The Federal Health Authority (FHA) handles the executive responsibilities for the MoH, with a
focus on increasing the efficiency and competitiveness of the U.A.E. health system. The Minister of
Health is H.E. Abdul Rahman Mohammed Al Owais and the Undersecretary is Dr. Mohamed Salim
Al Olama.

The Ministry of Finance (MoF) is the federal authority involved in the insurance aspects of the
U.A.E. healthcare sector. For instance, the MoF has drafted a law that would mandate federal
compulsory health insurance in all seven emirates and appears to be underwriting the rollout of the
new health insurance program. The Minister of Finance is H.E. Obaid Humaid Al Tayer.

The Federal Health Insurance Authority (FHIA) will eventually be a stand-alone organization,
though it is still in its developmental stages as overseen by the MoH, MoF, and emirate-level health
authorities, to manage all aspects of health insurance in the U.A.E. as well as licensing, registration,
and codes of conduct for healthcare service providers.
The Dubai Health Authority (DHA), the regulator and operator of the Emirate of Dubais healthcare
sector, oversees and sets healthcare policy and strategy, develops medical education and research, and
regulates and licenses all healthcare facilities and services in Dubai and its free trade zones. Universal
healthcare, expected to be fully implemented in Dubai by 2016, is a key priority. Diabetes treatment
and care is another area of focus for the DHA. The President of the Dubai Health Authority is H.H.
Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and Industry.
The Director General is H.E. Engineer Essa Al Maidoor.

The Health Authority of Abu Dhabi (HAAD) is the Emirate of Abu Dhabis financially and
administratively independent public health authority that creates all requirements for healthcare
facilities, health insurance, clinicians, and health services while overseeing the management of health

Term Paper on Healthcare Industry

services at the policy level. The Chairman of HAAD is H.E. Mohammed Sultan Al Hameli and the
Director General is H.E. Dr. Maha Taysir Barakat.

The Dubai Health Authority (DHA) serves a dual role as regulator, as mentioned previously, and
operator of the Emirate of Dubais healthcare sector inclusive of all public healthcare facilities,
hospitals, clinics, and services in Dubai and its free trade zones. The President of the Dubai Health
Authority is H.H. Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of
Finance and Industry. The Director General is H.E. Engineer Essa Al Maidoor.

Term Paper on Healthcare Industry

THE HEALTH AUTHORITY OF ABU DHABI (HAAD)

In this report the functions and structure of the HAAD has been explored in detail so as to study the
Healthcare Industry in the U.A.E. The vision of HAAD can be represented through the following
diagram:

1.Populati
on

Episodes

Financin

2.Provider
s

3Payers
Claim
s

The main vision of HAAD is to provide quality healthcare services with the help of key Performance
Indicators set by the regulatory authority of the Emirate. In the above diagram, the population
signifies the right of everyone in the emirate access to healthcare. A system encompassing the full
spectrum of health - protecting, promoting, sustaining and restoring services across the territory of the
Emirate. An Episode is an inpatient Encounter or a set of outpatient Encounters linked to the same
clinical case based on the patient (identified by insurance member ID), and principal diagnosis.
Provider is an open system for all certified providers of health services who delivers world-class
quality care and outcomes in compliance with the highest international standards. Payers are the
mandatory health insurance for all Abu Dhabi residents. The financing system is flexible to manage
for change over time and the degree of subsidy is managed as efficiently as possible.

Term Paper on Healthcare Industry

POPULATION & VITALSTATISTICS:

According to HAAD the total population including Abu Dhabi, Eastern and Western Region in 2013
is 2,732,557 residents and according to DHA Dubai Emirate had a total of 2,158,740 residents in
2013
Birth
The UAEs Total Fertility Rate has declined from 4.4 to 1.7 per woman between 1990 and 2011
(World Health Statistics 2013 (WHO)). Declining birth rates are attributed to urbanization, delayed
marriage, changing attitudes about family size, and increased education and work opportunities for
women.
Death
Mortality rates have also declined steadily over the past years. Infant mortality is from 22 to 7 per
1000 live births between 1990 and 2011 across the UAE. In 2013, the diseases of circulatory system

Term Paper on Healthcare Industry

caused the highest number of deaths, accounting for 36.7% of all death cases registered in the Abu
Dhabi Emirate.
1) Injuries -Injuries are the second leading cause of death (19.6%) among this 62% are road
traffic injuries are the main cause.
2) Non-communicable diseases -The Emirate has high rates of chronic diseases related to
lifestyle, such as obesity, diabetes, and cardiovascular diseases. Cardiovascular diseases
accounted for 36.7% of all death cases in 2013.
3) Cancer-Cancer caused 12.9% of all deaths in the Emirate in 2013. Lymphoid, Hematopoietic
and related tissue cancers are the dominant cancers in Abu Dhabi. Late detection of breast
cancer leads to significant increases in mortality.
4) Communicable diseases -Rates of childhood communicable diseases are very low, due to
immunization programs targeting children aged
PROVIDERS
SEHA is the major provider of health care services with the following hospitals:ABU DHABI ISLAND

Sheikh Khalifa Medical City staff numbers more than 4,183. It has total capacity of roughly

764 beds.
Corniche Hospital is the UAEs leading referral hospital for obstetric and neo-natal care. It has

a professional staff of about 1,200.

Ambulatory Healthcare Services (AHS) operates 62 ambulatory and primary healthcare
clinics. The four AHS subsidiaries are Ambulatory Care Centers (ACCs), Disease Prevention
& Screening Centers (DPSCs), School Health Services (SHS), and Mobile Clinic Solutions
(MCS)

MIDDLE REGION

Mafraq Hospital has a bed capacity for roughly 451 beds and a professional staff of almost

2,000
Mafraq Dialysis Center is a state-of-the-art dialysis clinic.
Al Rahba Hospital is a 114-bed hospital with a professional staff of about 845.

EASTERN REGION

Term Paper on Healthcare Industry

Al Ain hospital is a 412-bed hospital. It has a professional staff of 2,000

Tawam Hospital has 461 beds and a professional staff that numbers over 3,400.
Al Wagan Hospital is a primary care and critical access hospital with two wards, ambulatory
treatment clinics, general dentistry facilities, and a critical access emergency department.

AL GHARBIA REGION

Al Sila Hospital is a 36-bed facility with a total staff of 16 doctors, 40 nurses, 17 allied health,

and 15 administrative personnel.

Dalma Hospital provides emergency services as well as specialized medical care in the fields

of Internal Medicine, Pediatrics, Obstetrics and Gynecology, General Surgery, and Dialysis.
Ghiathy Hospital is a 30-bed facility with a team of 22 doctors, two surgeons, 48 nurses, and

20 technicians and paramedics.

Marfa Hospital is a 28-bed rural community secondary hospital with a professional staff of 20

physicians and surgeons, 49 nurses, and 26 technicians and paramedics.

Madinat Zayed is a 155-bed secondary hospital. It is well-equipped and provides all basic and

specialized medical services.

Liwa Hospital provides emergency services as well as outpatient services in the fields of
General Medicine, Pediatrics, and Mother and Child Health.

Other Hospitals in the region include N M C Specialty, Al Noor, Burjeel Hospital, Life Line
Hospital, Al Rewaise, Dar Al Shifaa, Emirates International, Gulf Diagnostic Centre, Specialized
Medical Care Al Ain, Cromwell Women & Childrens Hospital, Provita International Medical
Centre, Al Salama, Al Ahalia, Oasis Emirates, French, Al Raha, Disabled Custodial Care Centre,
Provita International Medical Centre - Al Ain, Long Term Medical And Rehabilitation, National
Lifecare Al Khaleej, Hospital Universal, Health Point

PAYERS
Insurance: Regulations, Reimbursement, and Competitiveness

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The U.A.E. ranks among top 20 countries in the world for healthcare spending per capita. A universal
healthcare system is being devised in order to sustain all of its healthcare costs. A law passed in 2005
required all expatriates and their families living in Abu Dhabi to have private medical coverage, and a
law passed in 2007 gave HAAD the mandate to develop insurance policy and provide health
insurance regulation services.
In 2010, a requirement in Abu Dhabi was enacted for all hospitals and insurers to bill on a diagnosis
rate group (DRG) system. This requirement, plus other measures such as standardized contracts, is
expected to slow the rising cost of medical services. Today, universal healthcare insurance is in place
in Abu Dhabi and Dubai but only actively enforced in Abu Dhabi. Dubai is in the process of rolling
out its universal healthcare insurance system and recently mandated that the population of the entire
emirate must be covered by 2016. Sharjah is expected to implement a health authority and policies
similar to HAAD and DHA in the near future.
Disease and Healthcare Management Programs in the U.A.E. Healthcare Industry
Weqaya: HAAD has implemented a population screening and intervention program for Emiratis that
currently focuses on diabetes and cardiovascular disease.
Wareed: This is a MoH initiative to integrate electronic medical records in all 14 public hospitals and
68 affiliated clinics across Dubai and the Northern Emirates as well as automate all healthcare
processes across departments, such as radiology, pathology, pharmacy, surgery, accident/emergency,
and registration.
Tammini Program: This is another MoH initiative which provides information to the public for
medical products registered and marketed in the U.A.E. The program also provides warnings and
medication safety alerts for existing medical products in the country.

Pharmaceuticals and Medical Devices

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The pharmaceutical industry is expected to grow at a Compound Annual Growth Rate (CAGR) of
around 14.5 percent, reaching $3.58 billion by 2019, as patents expire on numerous drugs and the
U.A.E. government promotes the use of generic and over-the-counter drugs. Many of the worlds
largest pharmaceutical companies currently have a presence in the U.A.E., including Johnson &
Johnson, Sanofi-Aventis, MSD, Bayer, Merck Serano, Eli Lilly and AstraZeneca. There are also a
number of private Emirati pharmaceutical distributing and manufacturing companies that are driving
innovation in this sector. This list includes Pharmatrade, Neopharma and many others. In the medical
device market, U.S. imports account for more than a quarter (28.5%) of the $361 million annual
market, reflecting a CAGR of more than 11 percent from 2009- 2012. The quest to position the
U.A.E. as a global healthcare leader has driven demand for higher-end technology products, and
companies such as GE Healthcare already have a robust presence in the U.A.E.

Challenges and Areas of Improvement

To develop a world class healthcare sector there are number of challenges which the U.A.E.
government faces and hence is working with international partners is important to overcoming some
of these obstacles. The U.A.E. has developed international partners to support in the development of
specialty care practices in the fields of womens care, oncology, pediatrics, and diabetes.
Pharmaceuticals and their subsequent pricing in the region stands out as a key area of focus.
The Abu Dhabi 2030 plan specifically states that the Emirate has still to develop capabilities in key
areas; specifically by enhancing intellectual property rights, revising international trade agreements,
establishing a reliable drug testing and approval system, developing investment attraction
mechanisms and marketing and distribution capabilities the growth of a dynamic pharmaceuticals
segment will go hand-in-hand with the development of a world-class healthcare system, with the
development of each sector reinforcing the other. Dubai and the Northern Emirates are similarly
focused on developing a healthy pharmaceuticals industry in the U.A.E.
Over the next decade the main area of development is the growth and retaining of the healthcare
workforce. A gap has been identified in healthcare education and training among the nationals thus
liming the number of qualified physicians, nurses and technicians. This gap is being filled with hiring

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a lot of experts in the field from other countries, however retaining these experts can sometimes pose
a challenge.

Additionally, the licensing of Board Certified Physicians is not streamlined or

transparent, leading to problems recruiting and retaining primary care physicians in particular, and
leaving hospitals understaffed. Finally, medical malpractice issues, inconsistent licensing procedures
for physicians, antiquated and lengthy procurement regulations, and inability to access medical
information are all points of focus and improvement for the U.A.E.

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