PUBLIC HEALTHCARE FINANCING IN THE KINGDOM OF SAUDI ARABIA: AN ECONOMIC PERSPECTIVE
DOI:
https://doi.org/10.55519/JAMC-04-15272Abstract
Background: Given the Kingdom’s heavy reliance on oil revenue, the Saudi Vision 2030 emphasizes the sustainability of funding for public services, including healthcare. The government currently funds nearly 70% of total healthcare spending, with increasing budget allocation to the Ministry of Health aimed at improving healthcare infrastructure and services. However, despite these efforts, key health indicators remain below those of countries with similar income levels. From an economic perspective, this paper examines Saudi Arabia’s public health financing system, identifying short-comings and recommending corrective measures to enhance its performance. Methods: This policy analysis paper employed a mixed-methods technique comprising a literature review and secondary data analysis utilizing data from government reports, international organizations, and non-governmental organizations. Results: The analysis reveals several inefficiencies, including low preventive-care spending, excessive allocation to hospital/curative services, growing personnel costs, weak primary-care financing, and fragmented service provision across multiple agencies. Further, the existing system seems inadequate to effectively support individuals with chronic diseases and those from low-income brackets. Conclusion: To address these issues, a multifaceted approach is recommended, including optimizing resource allocation, minimizing budget fragmentation, strategic procurement of health goods and services, strengthening health insurance schemes, and enhancing inter-sectoral linkages between health and other related sectors. These measures aim to enhance the performance, equity, and sustainability of the public health system, ultimately aligning with the goals of Saudi Vision-2030 to improve the overall health and well-being of the population.
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