Saudi-German Healthcare Newsletter

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1 Saudi-German Healthcare Newsletter Editorial Dear readers, I hope that everyone has had solemn and dignified Ramadan and Eid holidays. The vast expansion of Saudi Arabia s healthcare sector will continue as the summer comes to a close. As the work continues, it is time for His Excellency Minister of Health, Dr. Al-Rabeeah to assess the progress so far. Ministry of Health (MOH) statistics indicate the public sector currently accounts for sixty percent of the health care market, as opposed to some eighty percent two years ago. These figures show that privatizing the healthcare sector is making successful progress. The measure creates vast opportunities for private companies. Nevertheless, MOH-driven initiatives also produce impressive figures. Sixty hospitals have been built within the last four years. The Custodian of the Two Holy Mosques King Abdullah has allocated SR 15 billion (USD 4 billion) to fund more than 22 healthcare projects throughout Saudi Arabia. The measure is aimed at supporting further the development of the country's healthcare and pharmaeceuticals' markets. Among those projects are the construction of 19 medical complexes and hospitals that will have a total number of 7,400 beds and include staff accommodation facilities and three pediatrics centers. The Ministry of Health and the Ministry of Finance will coordinate the work. Officials forecast that this work could eradicate the shortage of hospital beds and the need for patients to travel abroad for treatment in the next five years. Planning sources say this strategy is very likely to be incorporated in the new five-year government spending plan that is due to be issued in The three pillars or E's that form "Health - Made in Germany s" foundation are engineering, equipment and education and training. The initiative has extensive links to German companies working these in three fundamental areas. As a result "Health Made in Germany" is able to help those facing the challenges of modernizing Saudi health care by giving them access to what these companies have to offer. The initiative is company-driven and works under the auspices of the Ministry of Economics and Technology (BMWi). As a result, "Health - Made in Germany," reflects the German approach involving private and public sector cooperation to secure economic growth for companies and top-notch healthcare services for consumers. "Health - Made in Germany," the German federal government, Germany Trade and Invest (GTAI) and the Delegation of German Industry and Commerce in Saudi Arabia work in close cooperation with the Council of Saudi Chambers and the Saudi Chambers of Commerce and Industry as they act as the mutual gateway for business to business and government to business contacts. Thank you for your time Sincerely Yours, Benjamin Godel Deputy Delegate of German Economy 1

2 Contents Editorial 1 Newsflash Saudi Arabia 3 Newsflash Germany 7 AHK Publications 12 In profile: Dr. Sultan Al-Sedairy 13 In profile: Dr. rer. medic. Sandra M. Bütow 14 Calendar of Business Events 15 Events in Saudi Arabia Events in Germany Contact 15 2

3 Newsflash Saudi Arabia Health Kingdom's healthcare gets a shot in the arm August 14, 2013 Saudi Gazette RIYADH Minister of Health Dr. Abdullah Al-Rabeeah announces opening of new hospitals in the coming months Minister of Health Dr. Abdullah Al-Rabeeah announced that ten hospitals would start operating within the next few months in different parts of the Kingdom. He predicted that with the completion of 138 more hospitals that the MOH is working on, the total bed capacity of the Saudi healthcare system would reach around 44,000 beds. Addressing senior officials of the ministry and the media at an Eid Al-Fitr ceremony organized at MOH headquarters, he said: Introducing these ten hospitals into our services comes within the ministry s plan to open 30 new hospitals this year and next. We are now in the process of making finishing touches and equipping and recruiting the appropriate manpower for these hospitals. The minister said progress has been made in serving Saudis who need dialysis. Two international, specialized companies were granted three-phase contracts to run a dialysis purchasing scheme involving private healthcare facilities. Discussing the hospitalization of patients at private healthcare facilities, the minister said this service was only available in Riyadh. This program has cost us SR40 million this year and we are considering offering it to other regions at a later stage according to the ministry plan, Al-Rabeeah said. Highlighting the ministry s accomplishments, Al- Rabeeah said the initial 937 free-of-charge service was launched to serve the sick people at home, answer their questions, address their complaints and provide them with emergency ambulance service from the ministry s emergency communications center which works 24/7. He said that by the second quarter of the current year, more than 28,000 patients had benefited from the home medicine program. Launched by the ministry, the program involves 281 medical teams from 173 hospitals. Al-Rabeeah said the ministry would soon establish a national center to prevent and combat diseases, provided the Council of Ministers gives its approval. This center will monitor and follow up on the epidemic and endemic diseases in the Kingdom to reduce their risk and prevent their spread, he said. He revealed that the ministry has continued its visiting doctor program, under which it had recruited medical consultant doctors from the US, Canada, Europe and some Arab countries. Since the introduction of the program, a total of 2,823 consultants have been attracted and more doctors will come from Cuba during the next few weeks, he said. 3

4 MOH carrying out 46 programs to improve healthcare services May 2, 2013 Saudi Gazette TAIF The Ministry of Health (MOH) has revealed that it is carrying out 46 projects for improving medical services in all of its health facilities. In an official report released recently, the ministry said some of the projects have been implemented while others are currently under way. The report said one of the most prominent projects is the establishment of a committee to scrutinize doctors degrees and clinical services that are provided to patients. The projects include another program to monitor medical errors in hospitals. It is an electronic program in which the event is registered on the screen directly from the hospital and it appears on the computers of officials at the ministry so they can provide the hospital with support and determine what went wrong, what caused the problem, and how to prevent recurrence. The ministry also embarked on a program for clinical revision in which 49 clinical indices in 90 of the ministry s hospitals are monitored. A program has also been established for monitoring doctors productivity. In this program, the consultant doctor registers the number of operations he has performed, his clinical tests, research and studies. The establishment of a one-day surgery program was another achievement mentioned in the ministry report. The percentage of one-day surgeries has increased from two percent to 38 percent in most hospitals with a combined total of 135,000 surgeries conducted. Programs for medical risks, drug safety and improving medical files and converting them to electronic files have been established. The ministry has introduced Australian coding standards in medical registers and established a program for improving medical performance in neonatal intensive care units in cooperation with the University of Minnesota. The ministry has in addition established a program for patient relations in which 1,200 men and women employees are working. The staff has completed the system for doctors work, which shows a doctor s function, responsibilities and duties toward patients and the hospital. It has established the home medicine program that is presently serving 25,000 Saudi men and women in their homes. About SR 718 million has been spent on this program during the past year. 4

5 Saudi healthcare sector needs private investment July 11, 2013 Zawiya JEDDAH Private sector contributions and investments are increasingly needed to respond to a growing healthcare demand in Saudi Arabia, Deloitte healthcare experts said As the official Knowledge Partner for the Hospital Build and Infrastructure Middle East Exhibition & Congress in Dubai this month, Deloitte healthcare advisors shared a series of presentations that took a closer look at the healthcare market and identified the need for further private sector contributions. Deloitte healthcare experts discussed the challenges and opportunities facing the Saudi healthcare sector with in-depth focus on the key areas such as the demand drivers fuelling growth, megaprojects and medical cities in development across the Kingdom, the incentives being offered to private investors, as well as new opportunities for additional private sector investments. They further shared their analysis of the market, identifying Saudi provinces that are in great need in terms of beds and facilities and consequently offer attractive opportunities for additional private sector investments. "We find that the healthcare sector across the Middle East is evolving to meet growing demand, and Saudi Arabia is leading the way. The Saudi government is heavily subsidizing the healthcare sector which will yield considerable results," said Dr. Hassib Jaber, regional healthcare consulting leader at Deloitte in the Middle East. With healthcare expenditures per capita in Saudi Arabia expected to grow at CAGR of 6.9 percent until 2016 when they are expected to reach SR 4,000, the need for private sector investment becomes all the more apparent." The Deloitte presentation of the healthcare infrastructure across main Saudi Arabian provinces revealed, among other things, that in terms of physicians per 1,000 population working in private medical centers/dispensaries, Jazan is significantly below the national Saudi Arabia average, indicating insufficient provision of primary healthcare services by the private sector. In terms of private hospital beds per 1,000 population, the Northern border, Jazan and Al Jouf regions are significantly below the country average indicating insufficient provision of secondary healthcare services by the private sector. Private sector contribution in the primary and secondary healthcare markets is heavily concentrated in three main provinces: Riyadh, Makkah and the Eastern regions, where approximately 66 percent of the population lives. The increasing demand for quality healthcare and rising expenditures associated with it should provide many opportunities for increased private sector investments. However, the Deloitte presentation finds that private contributions to megaprojects and new hospitals remains relatively low, with only nine private healthcare projects announced publicly out of an estimated 125 upcoming projects. Deloitte experts predict that the private healthcare industry will move from its current "emerging" stage - where private sector contribution is increasing although it remains quite small as compared to public sector sources - to an "evolving" stage, where private sector contribution will overtake the same share of the public sector and where there will be growing interest in secondary and tertiary healthcare provision. "The move from an emerging stage to an evolving one comes with many challenges, namely the shortage of healthcare professionals, with private and public sector competing to retain talented resources" added Jaber. "Further challenges include a shortage of Saudi health professionals leading to the hiring of expatriates, and the difficulty in creating a supporting legal, 5

6 operational, and financial environment to encourage public-private partnerships." The Saudi government is encouraging private sector contribution to the healthcare industry through several means, including the implementation of strategic initiatives in order to drive the industry to the desired levels and reduce the financial burden on the public sector. Deloitte analysis identified incentives, such as conducting studies to assess the feasibility of privatization initiatives for enhanced quality healthcare provision by the private sector; encouraging private sector participation via offering attractive incentives especially for Saudi investors, such as granting them interest-free loans for healthcare projects (hospital projects up to USD 53.3 million) to be repaid over 20 years with a grace period of five years; implementing a patient-centered health care system aiming to meet patients' quality expectations; enforcing mandatory private health insurance to achieve high healthcare quality level for all insured parties; introducing awareness subjects on preventive care, nutrition, and health behavior among the youth; and proceeding with the ninth development plan allocating SR billion for various health initiatives and encouraging private sector participation in the provision of healthcare services. 6

7 Newsflash Germany German TraumaRegister statistics show improved survival rate for full-body CT in trauma cases The Polytrauma Research Group at the Technical University of Munich's Klinikum rechts der Isar has discovered that using full-body CT scans markedly improves survivability of trauma, including in cases of severe shock. The group reported their findings in the professional journal PLOS ONE on July 24. Based on their results, the group recommended the installation of full-body CT scanners in or near trauma rooms in future. The authors compared the actual and expected mortality rates for patients who were examined using full-body computer tomography (CT) with those who were not. The patients were divided into three groups: a. patients in severe shock, b. patients suffering moderate shock, and c. patients who were not in shock. The researchers had already demonstrated the benefits early, full-body CTs for hemodynamically stable patients. Many experts have up to now ruled out the procedure for hemodynamically unstable patients because its benefits were scientifically unproven. Up to now, rather than full-body CTs, doctors have viewed a physical exam, x-rays of the cervical spine, thorax and pelvis, and an ultrasound of the abdomen as sufficient for patients in severe and moderate shock. A full-body CT was not indicated because it took too much time, delaying the start of emergency surgery. In the study, 9,233 patients (55 percent) had been examined on admission with a full-body CT, which takes between three and six minutes on average. The data showed full-body CTs were carried out on 1,821 (11 percent) patients suffering from severe shock and 4,280 (26 percent) with moderate shock and that these patients had significantly lower mortality rates than expected. Furthermore, when precise, risk-adjusted, mortality analysis was carried out based on revised injury severity classification (RISC) scores, the actual mortality rate for severely injured patients in shock who had full-body CTs was significantly lower statistically compared to patients that did not have the procedure. The scientists and trauma surgeons discovered that fullbody CTs increased the chance of survival of trauma patients in severe shock by more than 25 percent. They said that despite the delay, the full-body CT allowed doctors to recognize the entire pattern of injuries and initiate comprehensive, targeted, life-saving treatment. The procedure also made surgeons able to locate precisely and treat heavily bleeding injuries, in other words, those contributing most greatly to the hemodynamic instability in the first place. For the scientists and surgeons, these results not only confirmed the benefits of the full-body CT. They said the data also has implications for initial treatment of all trauma patients and for the equipping of trauma clinics. In reference to the study, Dr. Stefan Huber-Wagner of the Clinic for Trauma Surgery at the Klinikum rechts der Isar said, "A demand for 24-hour availability of fullbody CTs in or near the trauma room at national and regional trauma centers will be incorporated within the formation of the Trauma Network initiated by the DGU." He added that this would likely create a trend towards building even higher performance CTs for integration in trauma rooms. At the same time, the researchers cautioned that the performance of full-body CTs on hemodynamically unstable trauma patients could only be carried out at properly equipped clinics with teams trained 7

8 specifically to do so. At the Klinikum rechts der Isar several state-of-the-art 128-slice CT have been used to treat trauma patients in recent. The director of the Clinic for Trauma Surgery at the Klinikum rechts der Isar, Peter Biberthaler, emphasized, "Mortality rates for severely injured trauma victims will continue to fall if this technology is coupled with the proper expertise. The study is also a good example of how focused use of innovative technologies can have a direct and positive influence on the survival of trauma patients." For more information: Priv.-Doz. Dr. med. Stefan Huber-Wagner Klinikum rechts der Isar Klinik und Poliklinik für Unfallchirurgie Tel: mailto:huber-wagner@mri.tum.de Internet: 8

9 Trio of German ministries in step on healthcare Senior officials at Germany's Federal Ministry of Economics and Technology (BMWi), Federal Health Ministry (BMG) and Federal Ministry for Education and Research (BMBF) have announced they are to intensify their close cooperation in issues regarding healthcare. The BMWi's Stefan Kapferer, Thomas Ilka of the BMG and the BMBF's George Schütte say that they will coordinate at the highest level their ministries' activities and policies on issues impacting healthcare now and in future. The three said that regular exchanges of information would provide a foundation the effort. An undersecretary at BMWi, Kapferer said, "Germany's outstanding healthcare rests on three pillars good provision of services, a strong healthcare economy and excellent research. Only by working together can our ministries meld healthcare's many aspects to bring added value to patients and the economy." Undersecretary Thomas Ilka expressed the position of the government office directly responsible for health, the BMG, "German citizens should profit equally from research gains and innovations in healthcare. We want the most useful medical innovations to become available as quickly as possible. That can only happen if we maintain an overview of not only the safety and quality of patient care, but the affordability of the healthcare system as well." Representing the BMBF, Undersecretary Georg Schütte commented, "Demand-oriented research is the key to a productive healthcare system. By establishing a framework program for healthcare research, we have made an important contribution to ensuring that progress in terms of research makes its way to the patients more quickly. An important concern for us is promoting cooperation between science and industry to benefit patients. In this respect, the interdisciplinary national strategy process for medical technology has provided a great deal of momentum." The three undersecretaries have also agreed to increase the awareness of cooperation between their ministries by presenting them together at a single stand at the next medical technology trade show, MEDICA, which will be held in Düsseldorf in November For more information: 9

10 Top flight congress on IT trends in telematics for medicine and healthcare One of the main specialist events for healthcare and information technology is being held on September 25 in Essen. The Ninth Congress for Information Technology in the Healthcare Industry will feature forums, seminars and networking opportunities in the areas of electronic communication in healthcare, telemedicine and mobile health. The congress is being hosted by the Zentrum für Telematik und Telemedizin (ZTG) at the Congress Center South at the Messe Essen trade fair venue. As in previous years, expert presentations on the latest in technology will be held. There will also be an accompanying exhibition of state-of-the-art IT and health know how. The undersecretary from North Rhine Westphalia's Ministry of Economics, Energy, Industry, SMEs and Trade, Günther Horzetzky, will open the event. The Medical Director of Essen University Clinic, Dr. Eckhard Nagel, is scheduled to hold the keynote speech. This will be followed by a group of presentations on useroriented applications for professional identification in ancillary healthcare fields, electronic medical files, and IT-supported procedures and applications in healthcare. The second series of talks will address the issues of eaztbriefe (electronic doctors' records) and physicians' use of IT. A workshop will also be held on "Modern Site Prerequisites for IT Commerce at the Medical Interface a Dialogue between Industry and Regional Economic Promotion." A panel discussion on prescription verification and mobile health security issues will additionally address the topic of patient safety. Also on the program is a workshop by the Teleradiology Association of the Ruhr Region (Teleradiologieverbund Ruhr) entitled "The Next Generation." To register and learn more about the event please go to 10

11 Medical treatment in Germany Health services for all patients who wish to travel to Germany for medical treatment or any kind of healthcare are a key service provided by the Delegation of German Industry & Commerce (AHK Saudi Arabia). Services of AHK Saudi Arabia: Requirements: forwarding your documents to Germany to help find the hospital best-suited to your needs providing information about the type, cost, duration of treatment in Germany, including costs of the accompanying person and the name of the doctor who will oversee the treatment forwarding your file to specialist hospitals but bears no responsibility for medical decisions providing assistance in the process of obtaining a visa, but bears no responsibility for visa-issuing decisions made by the Department for Consular Affairs of the German Embassy in Saudi Arabia 1. Submission of all medical reports indicating the patient's status 2. Submission of all patient data (full name as mentioned in the passport in English, address, mailing address, phone number, mobile number, , etc.) 3. Provide home address and contact details in full, including P.O. Box, telephone, fax and mobile phone numbers, as well as an address, etc. 4. Pay the fee directly at the office or transfer to our bank account 11

12 AHK Publications Directory of German Companies and their Representatives in Saudi Arabia German companies' engagement in the biggest economy and market in the MENA-Region has grown rapidly during the last decade. Now more than 400 German companies are established in Saudi Arabia. German enterprises have successfully contributed to economic development in Saudi Arabia by investing, developing local expertise and transferring technologies and know-how. The Directory of German Companies and their Representatives by AHK Saudi Arabia lists all German companies doing business in the Kingdom, including their contacts in Saudi Arabia and Germany. New Directory of Saudi importing companies German companies' exports to Saudi Arabia have been rapidly increasing during recent years. For a successful export business, choosing the right importing company is crucial. For this reason, AHK Saudi Arabia published the new "Directory of Importing Companies" in order to assist companies in placing their products on the Saudi market. For more information about publications by AHK Saudi Arabia please see: Business & Legal Guide (in German) In depth information about the legal system is essential and often a key to success for companies interested in foreign business with Saudi Arabia. The new Business & Legal Guide Saudi Arabia covers practical and detailed information on the following topics: - Market Access (delivery transactions, trade agencies, sales & distribution etc.) - Foundation of an enterprise - Entry requirements and reporting procedures - Taxes and duties - Labor and social law - Industrial/intellectual property rights and competition law Contact: Christian Engels, Legal Affairs Phone: (0) Ext. 107 Mail: engels@ahk-arabia.com 12

13 In Profile: Dr. Sultan Al-Sedairy Immediately following his studies, Dr. Sedairy started his scientific career when he accepted a joint appointment with the Department of Pathology and the Department of Biological and Medical Research in Two years later, he was appointed Research Centre Deputy Executive Director (1990 to 1996), and chaired the Department of Biological and Medical Research in an acting capacity for four years (from 1992 to 1996). He is the chief architect of the Research Center s and PSCDR s strategic plan, defining its mission and vision, research agenda and the commitment to enhance its capacity through collaboration. As chair of the Research Advisory Council at KFSH&RC, he established the scientific and ethical guidelines for medical research to ensure the appropriateness and relevance of that institution s research activities. Dr. Sultan Al-Sedairy is the Executive Director (Research Centre, since 1996) at King Faisal Specialist Hospital and Research Centre (KFSH&RC). 13

14 In Profile: Dr. rer. medic. Sandra M. Bütow Guiding foreign investors in establishing healthcarerelated businesses in Germany is just one of Sandra Bütow's areas of expertise. Before becoming a manager specialized in inward investment in healthcare at Germany Trade & Invest's headquarters in Berlin, she earned a degree in chemistry and a PhD in neuroscience and worked for several years in a number of applied fields. Knowledge of the subjects affecting healthcare, coupled with industry experience, have left the neuroscientist eminently qualified to help investors from abroad negotiate the fields of medical biotechnology, drug development and medical technology. She is the person to contact for information on the business environment, including corporate investment framework, tax regulations and subsidies in her home country. Biosystems Technology Working Group at the University of Applied Science in Wildau, outside Berlin. A Berlin native, Dr. Bütow studied chemistry at Berlin's Free University and finished her PhD in 2007 at German capital's renowned Charité hospital with the title of doctor rerum medicarum in the area of neuroscience. For investors investigating opportunities in Germany's healthcare industry, she is a key person to see. At the moment, Dr. Bütow is preparing a special, informational marketing event for Arab Health in Among the focuses of her work are growing healthcare markets and how demographic change influences these markets and the delivery of healthcare. The neuroscientist says that the rising number of patients who chronically suffer from the "lifestyle diseases" that plague modern, affluent societies is of particular interest to her. Among these are diabetes, hypertension, heart disease, atherosclerosis and stroke. Other aspects of her work are dedicated are helping businesses to develop products and services to resolve the challenges of providing healthcare in thinly populated areas and meeting increased demand for medical aids in aging populations. Before becoming Healthcare Manager at Germany Trade & Invest in September 2011, Dr. Bütow was Network Manager for Life Sciences at the Berlin- Brandenburg Capital City Cluster Management, BioTOP. There she worked on projects involving clean biotechnology, drug development, food chemistry and bioinformatics. She came to BioTOP in 2009 after serving for two years as a post-doctoral fellow on the 14

15 Calendar for Business Events 2013 Events in Saudi Arabia 2013 Date Trade Fair September rd Annual Health Facilities Infrastructure Saudi Arabia, Riyadh Events in Germany 2013 Date Trade Fair 3-4 September 2013 Hospital Build Europe 2013, Hamburg October 2013 Homecare Leipzig, Leipzig October 2013 CPHI Worldwide, Frankfurt October 2013 P-MEC Europe, Frankfurt November 2013 MEDICA, Düsseldorf Contact German-Saudi Arabian Liaison Office for Economic Affairs Futuro Tower, 4th Floor, Al Ma'ather Street P.O.Box: 61695, Riyadh: 11575, Kingdom of Saudi Arabia Phone: Fax:

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