Saudi Arabia to spend 4.4 billion dollars on. new health projects over the next two years

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1 Saudi Arabia to spend 4.4 billion dollars on new health projects over the next two years The Kingdom of Saudi Arabia plans to invest around 4.4 billion dollars over the next two years in the infrastructure of the health sector including the construction and equipment of hospitals and health centers as well as free early vaccination. Projects include the adoption of a number of operating programs for the development of the Ministry of Health facilities in addition to the adoption of new standards for hospitals functionality that will be implemented gradually in coordination with the Ministry of Finance. Preparations are being made for the establishment of a Health Investments Company after the Public Investment Fund and the Ministry of Health discuss its details that include its economic feasibility, its goals, activities and mechanism of action. The Saudi Minister of Health Dr. Abdullah al-rubaia announced that King Abdullah Bin Abdul Aziz, Custodian of the Two Holy Mosques, directly approved the allocation of 4.4 billion dollars (15 billion and 100 million Saudi Riyals) for building 22 health projects including 19 integrated medical complexes comprising hospitals and modern medical centers as well as three centers for treating growth and behavioral disorders in children, the first of their kind to be established in the Kingdom, offering a high-standard level of care and treatment for patients suffering from Autism and Hyperactivity. Al-Rubaia explained that self-employment system has been adopted in all Ministry of Health hospitals and health centers and the Ministry of Health requested to convert from employment on the first section to self-employment with the Ministry of Finance. A number of operating programs have been adopted as well to develop Ministry of Health facilities and new criteria have been approved for the operation of hospitals which will come into force in coordination with the Ministry of Finance. He also approved to establish a Health Investments Company owned by the Public Investment Fund; the details 22

2 of which will be urgently discussed including its economic feasibility, objectives, activities and the mechanism of its action between the Public Investment Fund and the Ministry of Health. The most important projects include First: The approval of the following hospital projects: 1. Raneeh Hospital in Makkah (200 bed capacity, with housing) 2. Al Kharmah Hospital in Makkah (200-bed capacity, with housing) 3. Al Qunfudah Hospital in Makkah (500-bed capacity, with housing) 4. Maternity and Children Hospital in Al Madinah (400-bed capacity, with housing) 5. A hospital in Badr Government in Al Madinah (200-bed capacity, with housing) 6. A hospital in Almajmaáh (300-bed capacity, with housing) 7. A hospital in Sharourah (300-bed capacity, with housing) 8. Al Qitaá Al Jabaly Hospital in Jazan (300-bed capacity, with housing) 9.Maternity and Children Hospital in Mahayel Asir, (200-bed capacity, with housing) 10. Al Qatif Hospital (500-bed capacity, with housing) 11. A hospital in Al Ahsa (500-bed capacity, with housing) 12. A hospital in the west of Dammam (500-bed capacity, with housing) 13. The Medical Complex in Riyadh (1000-bed capacity, with housing) 14. The Medical Complex in Jeddah (1000-bed capacity, with housing) 15. Al Qahmah and Al Barak Hospital in Asir (300-bed capacity, with housing) 16. Growth and Behavior Disorders Center in Riyadh 17. Growth and Behavior Disorders Center in Makkah 18. Growth and Behavior Disorders Center in the East Region 19. Trobah Hospital in Makkah (100- bed capacity, with housing) 20. Al Mahd Hospital in Al Madinah (200-bed capacity, with housing) 21. Khamis Mushait Hospital in Asir (500-bed capacity, with housing) 22. East Asir Hospital (200-bed capacity, with housing) Second: Quickly expropriating lands due to the significance to establish the following vital projects: Maternity and Children Medical Tow- 23

3 er in Jeddah Eye Specialist Hospital Medical Tower in Jeddah Pediatric hospital in Jeddah Third: Coordinating with the Ministry of Municipal and Rural Affairs to expedite the abdication of lands for Prince Sultan Bin AbdulAziz Emergency Hospital, with a 500-bed capacity and 15 sites for comprehensive clinics in Riyadh. Fourth: Coordinating with the Ministry of Municipal and Rural Affairs to allocate a part of the land specified for King Abdullah bin Abdulaziz s Gardens, with an area of m2, in order to establish a hospital in west Riyadh with a 500-bed capacity. Fifth: Coordinating with the Ministry of Education to specify a land for the Ministry of Education located near Prince Mohammed Bin AbdulAziz Hospital (East Riyadh) to establish Al-Yamama Maternity and Children s Hospital, provided that the current land of Al-Yamama Hospital is submitted to the Ministry of Education or what has been agreed to between the Ministry of Health and the Ministry of Education regarding this matter. Sixth: Expropriating lands near Maternity and Children s Hospital in Al Qatif, with an area of m2 to be m2; in order to establish Maternity and Children s Hospital in Al Qatif. Seventh: In case of the unavailability of a suitable land for Ministry of Health from the Ministry of Municipal and Rural Affairs or the states properties, the approval is given for purchasing a parcel of land in the nearby lands of Riyadh to establish the Mental Health Hospital in Riyadh. Eighth: Approval of allocating SR to meet the requirements with regard to construction of primary health centers for which appropriations were made in the ministry s budget to buy lands for primary healthcare centers. Ninth: The adoption of self-employment system in all Ministry of Health hospitals and health centers, as well as the discussion of the Ministry of Health request to convert from employment on the first section to self-employment with the Ministry of Finance. Tenth: The approval of a number of operating programs to develop Ministry of Health facilities. Eleventh: The approval of new criteria for the operation of hospitals which will come into force in a phased manner in coordination with the Ministry of Finance. 24

4 Twelfth: Sanction to establish a Health Investments Company owned by the Public Investment Fund; the details of which will be urgently discussed including its economic feasibility, objectives, activities and the mechanism of its action between the Public Investment Fund and the Ministry of Health, to be escalated to His Majesty with the results in light of the system of the Public Investment Fund. Allocation of lands for new health projects Riyadh Governor, Prince Khalid bin Bandar bin Abdulaziz demanded to quickly execute the royal order to allocate lands for the projects of Prince Sultan bin Abdulaziz Hospital with a 500- bed capacity, and the construction of five comprehensive clinic complexes in Riyadh that contribute to the reduction of pressure and congestion in the main hospitals. He also allocated land for the construction of Prince Sattam bin Abdul Aziz Hospital with a 500-bed capacity in west Riyadh, and Al-Yamama Maternity and Children s Hospital with a 500-bed capacity in addition to a medical complex with a 1000-bed capacity as well as a new Mental Health Hospital with a 500-bed capacity. Prince Khalid bin Bandar bin Abdulaziz ordered to immediately start the execution of these important health projects that contribute to the service and healthcare of community members. Al-Jouf projects Al-Jouf Governor Prince Fahd bin Badr bin Abdulaziz laid the foundation stones for several health projects in the region that include 7 health centers: Qara Health Center, Al-Twair Health Center, Al-Rabwa Health Center, Domat Al-Jandal Health Center, King Fahad Health Center, Hadraj and Daija Health Center and Hadithah Health Center. The Prince laid foundation stones for Health Projects Al - Jouf Medical City King Faisal Medical City King Abdulaziz Specialist Hospital Al - Jalilah Hospital 25

5 five medical warehouses in Al-Jouf, and for the construction of clinic buildings in Domat Al-Jandal Hospital, for the renovation of dialysis center with a 30-bed capacity in addition to accommodation facilities supplied for the staff of King Abdulaziz Specialist Hospital, Medical Tower, Mental Health Hospital and Tabarjal Hospital. Prince Fahd bin Bandar also inaugurated a forensic medicine center in Sakaka and 7 governmental healthcare centers built at a cost of more than SR 160 million. These projects achieved by the Saudi government aim at providing its citizens with the best health services. Al- Jouf will expect giant projects that will complement the health services in the region and will highly upgrade its level under the constant guidance and follow-up of Prince Fahd bin Bandar who will put maximum effort to finish these projects along with the support of Minister of Health Dr. Abdullah al-rubaia. New hospital in Al-Ahsa 500 new beds were added to the clinical capacity at the Ministry of Health Hospitals in Al-Ahsa with the construction of a new hospital that will be the most modern health project. The project is offered by King Abdullah Bin Abdul Aziz, Custodian of the Two Holy Mosques who allocated SR 15 billion to build 22 healthcare projects for the Kingdom. New health projects have been approved of including Oncology center with a 100-bed capacity, Dentistry center with a 100-chair capacity; while a General Hospital has been recently approved of with a 500-bed capacity and a Maternity and Children Hospital has been expanded with a 400-bed capacity along with the current implementation of hospital projects that are expected to be inaugurated at the end of this year. Dr. Abdul Mohsen bin Nasser Al-Melhem, Director of Health Affairs in Al- Ahsa Governorate, appreciated the support of the Custodian of the Two Holy Mosques and mentioned that the 500 new beds at Al-Ahsa Hospital will contribute effectively to the reduction of the patients suffering and will reflect positively on the health service recipient in the province and the villages nearby. Al-Melhem said that this support complements the ongoing projects in the province including King Faysal Hospital in Hofuf, Prince Saud Bin Jalawi Hospital in Mubarraz, Omran Hospital project with a 100-bed capacity, Emergency Tower project at King Fahd General Hospital, Infrastructure Development Project of King Fahd General Hospital, Al-Batha Hospital with a 50- bed capacity and receiving 20 beds at the Neonatal Intensive Care Unit and other health projects. Unprecedented projects in Hafar Al-Batin Health services in Hafar Al-Batin have recently entered an unparalleled phase of its history where Prince Saud 26

6 bin Nayef, Emir for the Eastern Region, inaugurated with the presence of the Minister of Health Dr. Abdullah bin Abdulaziz al-rubaia several giant health projects that cost over half a billion Saudi Riyal. He also laid foundation stones for other health projects in the Province that cost more than SR 70 million. With the opening of these projects, the Province has more than 1000 beds and Prince Saud inaugurated the two biggest health projects that are Hafar Al Batin Central Hospital and Maternity and Children Hospital; both hospitals join King Khalid General Hospital who spent more than three years offering health services alone and these hospitals will finally reduce the constant pressure he witnessed in the past years. In this occasion, Minister of Health Dr. Abdullah al-rubaia said that the country offers great attention and support to the health services in the Kingdom in order to provide full healthcare services to the citizens in the entire Kingdom. This clearly upgraded the performance of healthcare facilities and contributed to offering special health services in line with the hopes and expectations of the leaders while meeting the health needs of the citizens. He confirmed that this journey of giving will not stop at these achievements and the Ministry of Health is currently building several health projects that cover all the regions and provinces in the Kingdom according to the Integrated and Comprehensive National Health Care Project that takes into account the principles of justice and inclusiveness in the distribution of health services, in addition to training programs aiming at the development of health personnel and the application of quality programs in all health facilities. Riyadh, Jeddah, Taif and Qassim Five new health projects with a bed capacity were established to provide modern medical care to the National Guard employees and their families as well as to Saudi nationals in Riyadh, Jeddah, Taif and Qassim. Prince Miteb bin Abdullah bin Abdulaziz, Minister of State, member of the Council of Ministers and Chairman of the National Guard stated that these new health projects were carefully studied according to the current and future needs knowing that they will provide special medical care. HE Chief Executive Officer of the National Guard Health Affairs Dr. Bandar bin Abdul Mohsen Al Knawy stated during a presentation about these projects that they include Obstetrics & Gynecology Hospital in Riyadh with 300-bed capacity, Medicine and Neurosurgery Center in Jeddah with 176-bed capacity, King Abdullah Specialized Children s Hospital in Jeddah with 350-bed capacity, National Guard Hospital in Taif with 300-bed capacity and National Guard Hospital in Qassim with 300-bed capacity. He also stated that Health Affairs seek to provide everything that serves the employees of the National Guard in the field of advanced health care in the various regions of the Kingdom. 27

7 Philips and Al Faisaliah Medical Systems Officially Open Philips Healthcare Saudi Arabia Ltd. -Royal Philips (NYSE:PHG, AEX:PHIA) and Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group, celebrated the official opening of Philips Healthcare Saudi Arabia Ltd., a joint venture to market and sell Philips Healthcare solutions and services in the Kingdom of Saudi Arabia. The partnership marks an important milestone in Philips and FMS mutual commitment to raise the standards of healthcare in the country. Deborah DiSanzo, Chief Executive Officer, Philips Healthcare and HRH Mohammed bin Khaled Al Abdullah Al Faisal, President and Chief Executive Officer of the Al Faisaliah Group commemorated the launch at a ribbon cutting ceremony in Riyadh. Following the signing of the agreement in September 2012, by Frans van Houten, Chief Executive Officer, Royal Philips and HRH Mohammed bin Khaled Al Abdullah Al Faisal. We are determined to move ahead and begin working with Philips to provide solutions that will contribute to the advancement of healthcare services in Saudi Arabia. Through this partnership, we will be able to focus our efforts and expertise towards meeting specific requirements and challenges faced by the industry, said HRH Mohammed bin Khaled Al Abdullah Al Faisal. The partnership will combine Philips strong healthcare portfolio, including medical imaging systems, patient monitoring devices and clinical information solutions, with FMS recognized knowledge of the market requirements and strong position in Saudi Arabia, the largest economy in the Middle East by GDP. The Saudi Arabian healthcare market is estimated to grow by 8% annually between 2013 and 2017, driven by targeted government spending on health services and hospital infrastructure. In addition, the new company will facilitate the development of the next generation of skilled Saudi healthcare professionals through dedicated education and training programs. As a leader in providing innovative and patient-centric healthcare solutions, Philips is intent on delivering against the unique needs of Saudi Arabia. Through the exchange of knowledge with Al Faisaliah Medical Systems, we can bring tailored, meaningful innovations in products and services, including design and education to Saudi Arabia, said Deborah DiSanzo. This is a significant step toward positively impacting the health and well-being of the nation, as well as driving forward the government s vision to transform their healthcare services. The Kingdom of Saudi Arabia is currently undergoing a nation-wide transformation led by the government s commitment to build and renew its infrastructure in the areas of healthcare, education, housing, and energy diversification. Since 1935, Philips has established a strong footprint within the Kingdom bringing innovations in healthcare, consumer health and well-being and energy efficient lighting which have contributed to the development of the economy and helped address infrastructure challenges. 28

8 Philips and Care IQ partner to provide services to address challenges faced by healthcare systems in the Kingdom of Saudi Arabia -Royal Philips (NYSE:PHG, AEX:PHIA) and Care IQ recently announced a collaboration to provide solutions to address the complex management challenges faced by healthcare providers and administrators in Saudi Arabia. The announcement is in line with Philips global business model to combine Philips Healthcare existing portfolio of services in consulting, education, design, and other areas of strengths, to better serve customers. Demand for healthcare services has rapidly increased in Saudi Arabia, both in the public and private sector, as the government undertakes a nation-wide transformation to improve the quality of healthcare. According to a report by NCB Capital, the proportion of outpatient visits occurring at private facilities has increased from 19 per cent to 30 per cent in the last 10 years. In addition, the Saudi Arabian Government aims to achieve a hospital beds-topopulation ratio of 3.50 beds per 1000 population by 2014, which will require an additional 41,603 beds between public and private sectors. As the demand for more hospitals and services increase, healthcare providers and administrators will require innovative clinical and business solutions to improve operational and financial performance, and enhance patient outcomes from diagnosis through treatment to follow up. Beyond providing technology, we recognise the importance of ensuring that the technology resonates with clinicians using it. Through our collaboration with Care IQ, customers will have access to meaningful solutions needed to improve patient outcomes, provide better value by optimizing workflows and expand access to care, said Dick Bunschoten, General Manager of Philips Healthcare Saudi Arabia. As the standards of healthcare rise, providers will be able to manage more complex cases, ultimately contributing to the progression of the Kingdom s healthcare sector. Many new guidelines call for increased levels of collaboration among physicians, especially in areas such as oncology diagnosis which depends on collaborative decision-making. Advanced interventions require coordination between specialties too, sometimes even in the same intervention lab or operating theatre. Furthermore, rising demand for imaging diagnosis and interventions, coupled with patients high expectations, requires optimization of patient pathways. Through this agreement, Philips and Care IQ will be able to offer local healthcare providers customized solutions to facilitate effective collaboration, which enable information sharing and targeted communication between clinicians, as well as improve operational effectiveness and streamline clinical processes. Dr. Joris van den Hurk, Founder and CEO of Care IQ said, Up-to-date technology is an enabler for services which helps make evidence-based care more viable, and more efficacious. In effect our services can help healthcare providers produce improved outcomes and higher throughput, by applying intelligence to patient pathway optimization and care planning. This collaboration follows Philips launch of Philips Healthcare Saudi Arabia Ltd., a joint venture with Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group, to sell Philips Healthcare solutions and services in Saudi Arabia. The partnership marks an important milestone in Philips and FMS mutual commitment to raise the standards of healthcare in the country. 29

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