Kuwait Healthcare Snapshot - 9.6 - Global Marketsglobalmarkets.com.kw/.../2010/06/Kuwait-Healthcare-Snapshot-9.6.pdf · Kuwait Healthcare Snapshot A summary of Kuwait’s Government

Kuwait Healthcare Snapshot

A summary of Kuwait’s Government and

Private Healthcare sector

Ali BoshehryAli BoshehryAli BoshehryAli Boshehry

Global Markets Monitor | 6/6/2010


of Kuwait’s Government and

Private Healthcare sectors in 2009

6/6/2010 | Healthcare | globalmarkets.com.kw


of Kuwait’s Government and

Healthcare in Kuwait

Page 2 of 12

ContentsContentsContentsContents Global Markets Monitor ................................

About the Author ................................

Country Snapshot ................................

General ................................

Population ................................

Economy ................................

Healthcare ................................

Government Healthcare Sector

Private Healthcare Sector

Global Markets

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Government Healthcare Sector ................................................................

Private Healthcare Sector ................................................................................................

Global Markets Monitor

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Global Global Global Global Markets MMarkets MMarkets MMarkets MonitoronitoronitoronitorGlobal Markets Monitor was established in 2010 in Kuwait. Despite

founding team is regarded highly professional and experienced in the fields of Project

Management, Research, and Consultancy.

Global Markets Monitor aims at delivering professional market information to individuals and

corporations for better investment decisions and outcomes. We mainly target emerging markets

in the Middle East such as Iraq

obtaining facts and figures that built successful projects.

Global Markets Monitor strives in delivering quality and professional services to its clients. Our

team has been able to complete dif

is always looking for more challenging tasks in challenging markets. Our teams in Iraq make

every effort to be recognized as one of the best and fines

clients’ needs throughout the different projects

About the Author About the Author About the Author About the Author Ali Boshehry is the Managing Director of Global Markets Monitor. Mr.

Boshehry has worked in many challenging projects in the commercial and

hospitality markets.

Ali Boshehry has worked and managed several projects for major

developers and firms in the Gulf Region that enabled

skills in market research, project management, feasibility studies, operator

contracts, etc. Mr. Boshehry holds a Bachelor’s de

Vanderbilt University (Tennessee, USA), a Hotel Real Estate Investments and Asset Management

from Cornell University (New York, USA) and is currently perusing his MBA degree from Kuwait

University.

Global Markets

onitoronitoronitoronitor Global Markets Monitor was established in 2010 in Kuwait. Despite its new establishment


ent, Research, and Consultancy.



in the Middle East such as Iraq and Iran where we have local teams that worked in many fields

obtaining facts and figures that built successful projects.


team has been able to complete different projects successfully with the highest satisfaction and


every effort to be recognized as one of the best and finest consultancy teams contributing to

’ needs throughout the different projects’ and developments’ stages.

Ali Boshehry is the Managing Director of Global Markets Monitor. Mr.


shehry has worked and managed several projects for major

developers and firms in the Gulf Region that enabled him to develop his


etc. Mr. Boshehry holds a Bachelor’s degree in Engineering



Global Markets Monitor


its new establishment, the




teams that worked in many fields


ferent projects successfully with the highest satisfaction and


consultancy teams contributing to

Ali Boshehry is the Managing Director of Global Markets Monitor. Mr.


shehry has worked and managed several projects for major

to develop his


gree in Engineering




Page 4 of 12

Country Snapshot Country Snapshot Country Snapshot Country Snapshot

GeneralGeneralGeneralGeneral Kuwait is a small oil rich country

reserves1. Kuwait is situated

occupies 20,000 square kilometers

Empire on the 19th

of June in

1961 under Al-Sabah Family

ruling. The country has

developed since then to be

positioned as one of the major

oil exporters in the world.

Kuwait is divided into

governorates to facilitate the

control and the management

of the growing population in

Kuwait. The governorates are;

1. Al Asimah

2. Hawalli

3. Farwaniya

4. Mubarak Al Kabeer

5. Al Ahmadi

6. Al Jahra

PopulationPopulationPopulationPopulation The population in 2009 reached a total of 3,484,881 peopl

2,365,970 are expats2, Graph 1

in response for the local demand for skilled and unskilled labor in all fields.

generated from the oil sector enabled K

provide luxury to its local residents.

Kuwait is the lack of higher education population that can respond to the country’s, Graph 2.

Local citizens with higher education are only 11% of the working population in Kuwait

Furthermore, local citizens are unwilling to perform basic job duties that fit their educational

levels because the government has taken the responsibility of hiring

qualifications.

1 CIA – The World Factbook

2 The Public Authority for Civil Information

3 The Public Authority for Civil Information

is a small oil rich country with 102 billion barrels of oil reserves -

Kuwait is situated strategically between Iraq, Iran, and Kingdom

square kilometers of land. Kuwait declared its independence from the British

of June in

Sabah Family

untry has

to be

positioned as one of the major

six

to facilitate the

control and the management

of the growing population in

Kuwait. The governorates are;

The population in 2009 reached a total of 3,484,881 people; 1,118,911 are Kuwaitis and

Graph 1. The total population has increased dramatically in recent years

in response for the local demand for skilled and unskilled labor in all fields.

generated from the oil sector enabled Kuwait to start and develop other sources of income to

provide luxury to its local residents. One of the major reasons for the increased foreign labor in


izens with higher education are only 11% of the working population in Kuwait


levels because the government has taken the responsibility of hiring

The Public Authority for Civil Information

The Public Authority for Civil Information

Map 1 Kuwait map

Country Snapshot


- about 9% of world

of Saudi Arabia and

. Kuwait declared its independence from the British

e; 1,118,911 are Kuwaitis and

total population has increased dramatically in recent years

in response for the local demand for skilled and unskilled labor in all fields. The wealth

uwait to start and develop other sources of income to

One of the major reasons for the increased foreign labor in


izens with higher education are only 11% of the working population in Kuwait3.


levels because the government has taken the responsibility of hiring them despite their


Page 5 of 12

Graph 1: Kuwait Total Population 1965

Graph 2: Kuwaiti working population in Kuwait in 2009

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1965

Po

pu

lati

on

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Wo

rkin

g P

op

ula

tio

n

Working Population Educational Level in Kuwait

Kuwait Total Population 1965-2009

working population in Kuwait in 2009

1975 1985 1995 2005 2009

Year

Kuwait Population 1965-2009

Educational Level

Working Population Educational Level in Kuwait - 2009

Country Snapshot


2009

Total Kuwaitis

Total Expats

illiterate

Literate

Elementry School

Middle School

High School

Diploma

Undergraduate

Postgraduate

N/A


Page 6 of 12

EconomyEconomyEconomyEconomy Kuwait’s economy is heavily dependent on oil where

Gross Domestic Product in 2008

higher than normal since 2004 due to the massive global energy demand.

Year Change in Adjusted Series of G.D.P.

4.8% in 2006 and 2007, Graph 3.

Graph 3: Kuwait's Gross Domestic Product 2004

Economic growth at the activity level shows the lack of diversity of Kuwait’s G.D.P. the oil sector

is dominant with 59% of the total G.D.P. then it is followed by the Finance, Real Estate, and

Business Services sector with 15.7%

activities. Kuwait continual depend

any noticeable improvements to local facilities and services

A development plan was app

Kuwait’s economy. If the Kuwaiti government is serious about implementing the national

development plan, we shall witness major chang

4 Kuwait Central Statics Authority

5 The Gross Domestic Product is a measure of a country's overall economic output. It is the market value

of all final goods and services made within the borders of a country in a year.

-

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

2008

GD

P i

n K

WD

Kuwait's Gross Domestic Product

Kuwait’s economy is heavily dependent on oil where the oil sector contributed 59% of Kuwait’s

Gross Domestic Product in 20084. The Gross Domestic Product (G.D.P.)

5 has been increasing

higher than normal since 2004 due to the massive global energy demand. As a result, t

Year Change in Adjusted Series of G.D.P. reached 10% in 2004 but dropped again to an average

4.8% in 2006 and 2007, Graph 3.

: Kuwait's Gross Domestic Product 2004-2008



Business Services sector with 15.7% which leaves a large gap between the first and second

dependence on the oil sector to fund its national projects

any noticeable improvements to local facilities and services except for the oil sector

plan was approved by the National Assembly which shall change the face of

If the Kuwaiti government is serious about implementing the national

development plan, we shall witness major changes to the current G.D.P.

Kuwait Central Statics Authority

The Gross Domestic Product is a measure of a country's overall economic output. It is the market value

of all final goods and services made within the borders of a country in a year.

2007 2006 2005 2004

Year

Kuwait's Gross Domestic Product - 2004-2008

Agriculture and Fishing

Extraction of Crude Petroleum and Natural Gas and

Service Activities Incidental to Oil and Gas

Manufacturing

Electricity, Gas, and Water

Construction

Wholesale & Retail Trade, Hotels and Restaurants

Transport, Storage, and Communications

Finance, Real Estate and Business Services

Financial Institutions

Community, Social, and Personal Services

Country Snapshot


contributed 59% of Kuwait’s

has been increasing

As a result, the Year to

eached 10% in 2004 but dropped again to an average



etween the first and second

on the oil sector to fund its national projects has halted

except for the oil sector until 2010.

d by the National Assembly which shall change the face of

If the Kuwaiti government is serious about implementing the national

The Gross Domestic Product is a measure of a country's overall economic output. It is the market value

Agriculture and Fishing

Extraction of Crude Petroleum and Natural Gas and

Service Activities Incidental to Oil and Gas

Electricity, Gas, and Water

Wholesale & Retail Trade, Hotels and Restaurants

Transport, Storage, and Communications

Finance, Real Estate and Business Services

Financial Institutions

Community, Social, and Personal Services


Page 7 of 12

Healthcare Healthcare Healthcare Healthcare Kuwait’s wealth enabled it to provide free Healthcare to its local residents and collect minimal

fees from expats. The Kuwaiti government also sends local citizens abroad for treatment if no

applicable resources are available locally.

G.D.P. in 2008 which is relatively low among the other activities in country’s economy

The government of Kuwait spent a total of KWD

is a 9% increase from the 2007/2006 amoun

government generated a total of KWD

by 74% compared to the previous year, Graph

increase in foreign population which is the main source of revenue.

Graph 4: Kuwait Government Healthcare Revenue and Expenditure comparison

The Kuwaiti government represented by the Health Ministry currently operates 15 general and

specialized hospitals containing approximately 5,500 beds across the country as of 2008. The

private sector on the other hand operates 8 hospitals containing approximately 700 beds as of

20088.

6 Kuwait Central Statics Authority

7 Ministry of Health

8 Ministry of Health

-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Am

ou

nt

in K

WD

Kuwait Government Healthcare Services Revenue vs. Expenditure

Kuwait’s wealth enabled it to provide free Healthcare to its local residents and collect minimal


applicable resources are available locally. The Healthcare system contributed 1.07% of the

G.D.P. in 2008 which is relatively low among the other activities in country’s economy

The government of Kuwait spent a total of KWD 598,500,000 on healthcare in 2008/2007 which

is a 9% increase from the 2007/2006 amount spent, KWD 547,200,000. On the other hand, the

government generated a total of KWD 77,554,000 in 2008/2007 which is an increase in revenue

by 74% compared to the previous year, Graph 47. The increase in revenue is correlated with the

population which is the main source of revenue.

Healthcare Revenue and Expenditure comparison- 2006-2008




Kuwait Central Statics Authority

2008/2007 2007/2006

Accounting Year

Kuwait Government Healthcare Services Revenue vs. Expenditure

2008-2006

Country Snapshot


Kuwait’s wealth enabled it to provide free Healthcare to its local residents and collect minimal


contributed 1.07% of the

G.D.P. in 2008 which is relatively low among the other activities in country’s economy6, Graph 3.

on healthcare in 2008/2007 which

. On the other hand, the

in 2008/2007 which is an increase in revenue

The increase in revenue is correlated with the




Kuwait Government Healthcare Services Revenue vs. Expenditure -

Revenue

Expenditure


Page 8 of 12


Kuwait government currently opera

government Healthcare system in K

staff (physicians, dentists, and nurses) is lower than the number of non

Graph 5: Government Healthcare Medical vs. Non

The Healthcare facilities are distributed geographically all over the country to serve all the

commercial and residential

governorate;

# Governorate

1 Al Asimah

2 Al Asimah

3 Hawalli

4 Farwaniya

5 Al Ahmadi

6 Al Jahra

Table 1: Kuwait General Hospitals

9 Kuwait Ministry of Health


-

5,000

10,000

15,000

20,000

25,000

2003

Nu

mb

er

of

Sta

ff

Government Medical Staff vs. Non


Kuwait government currently operates 15 general and specialized hospitals

government Healthcare system in Kuwait employed 36,377 employees. The number of medical

staff (physicians, dentists, and nurses) is lower than the number of non-medical staff, Graph 4.

Government Healthcare Medical vs. Non-Medical Staff Comparison in Kuwait - 2003


l and residential areas. There is at least one major general

Hospital

Al Amiri Hospital

Al Sabah Hospital

Mubarak Al Kabeer Hospital

Fawaniya Hospital

Al-Adan Hospital

Al-Jahra Hospital

Total Beds

Kuwait General Hospitals – 200710

2004 2005 2006 2007

Year

Government Medical Staff vs. Non-Medical Staff - 2003-2007

Country Snapshot


tes 15 general and specialized hospitals9. As of 2007, the

he number of medical

medical staff, Graph 4.

2003-2007


general hospital in every

Beds

374

438

409

523

557

621

2,922

2007

Medical Staff

Non-Medical Staff


Page 9 of 12

The government also operates

# Hospital

1 Al-Razi

2 Physical Med. & Rehabilitation

3 Maternity Hospital

4 Chest Diseases Hospital

5 Infectious Diseases Hospital

6 Psychological Medicine

7 Ibn Sina Hospital

8 Kuwait Cancer Control center

9 Allergy Center

Table 2: Kuwait Government Specialized Ho

Moreover, The Kuwaiti Government has been increasing the number of clinics consistently to

provide the basic healthcare services to the local residential areas; Graph 6.

Graph 6: Government Healthcare Facilities in Kuwait


0

10

20

30

40

50

60

70

80

90

2000 2001 2002

Nu

mb

er

of

Ho

spit

als

an

d C

lin

ics

Government Healthcare Facilities in Kuwait

operates specialized hospitals as exhibited in Table 2 below;

Specialization

Orthopedic surgery

Physical Med. & Rehabilitation Physical Med. & Rehabilitation

Maternity

Chest Diseases Hospital Chest Diseases

Infectious Diseases Hospital Infectious Diseases

Psychological Medicine Psychological Medicine

Spinal Surgery

Kuwait Cancer Control center Cancer Control

Allergy Center

Total Beds

: Kuwait Government Specialized Hospitals - 200711


provide the basic healthcare services to the local residential areas; Graph 6.

are Facilities in Kuwait - 2008

2002 2003 2004 2005 2006 2007

Year

Government Healthcare Facilities in Kuwait - 2008

Country Snapshot


exhibited in Table 2 below;

Beds

267

Physical Med. & Rehabilitation 78

375

131

151

749

363

112

128

2,354


Hospitals (General & Specialized)

General Healthcare Centers

Dental Care Centers

Maternal Care Centers

Childhood Care Centers

Preventive Care Centers

Diabetes Clinics


Page 10 of 12

The Government has not developed

Healthcare facilities since the completion of the

above mentioned hospitals leaving the hospitals

more congested with the fast growing population.

The Kuwaiti government announced in 2008 Jaber

Al Ahmad hospital to be completed in 2013

covering an area 469,370

include 36 operation rooms and other major

facilities that would serve up 600,000 people in the

surrounding residential areas. The project since

announced has been facing major delays where

actual work on site did not start until November of 2009

Private Healthcare Sector

Unlike the government sector, the Private Health

faster pace. New clinics and hospitals have been established and continue to appear in the

different areas of Kuwait. A good indication of how well this sector is doing is the number of

staff being employed by the

employment share of the market by

Graph 7: Total Physicians, Dentists, and Nurses in Private Sector

12 Alqabas Newspaper – 11/5/2009

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2000 2001

Nu

mb

er

of

Sta

ff

Total number of staff Private Sector

The Government has not developed any new major

Healthcare facilities since the completion of the

above mentioned hospitals leaving the hospitals get

more congested with the fast growing population.

The Kuwaiti government announced in 2008 Jaber

Al Ahmad hospital to be completed in 2013

m². The hospital will

include 36 operation rooms and other major

rve up 600,000 people in the

surrounding residential areas. The project since

announced has been facing major delays where

actual work on site did not start until November of 200912

.

Sector

Unlike the government sector, the Private Healthcare Sector has been developing in a much



staff being employed by the different establishments. The private healthcare sector

employment share of the market by 11% in 2007 and 34% in 2006.

ts, and Nurses in Private Sector - 2008

11/5/2009

2002 2003 2004 2005 2006

Year

Total number of staff Private Sector - 2008

Figure 1: Jaber Hospital Model

Country Snapshot


care Sector has been developing in a much



different establishments. The private healthcare sector increased its

2007

Physicians

Dentists

Nurses

: Jaber Hospital Model


Page 11 of 12

The private sector is expected to grow further in the upcoming years. Patients are avoiding the

free government healthcare services and are paying a premium for private healthcare due to

some of the following reasons;

Criteria Government Healthcare Services

Time Longer waiting time

Appointments Patients should schedule many

appointments to complete a

treatment

Prestige No Prestige

Table 3: Government vs. Private Healthcare Services in Kuwait

The Kuwaiti government has organized the private healthcare establishments based on their size

and functionality13

:

1. Private Hospitals: the Ministry of Health divides the Private Hospital into two categories;

a. General Private Hospital: is a private hospital that

where patients can be admitted for treatment. The General Private Hospital

must at least

i. Internal Medicine

ii. General Surgery

iii. Pediatrics

iv. Gynecology & Obstetrics

v. Anesthesiology

b. Specialized Private Hospital: is a private hospital that has a minimum of 40 beds

where patients can be admitted for any specialized medical practices such as

Pediatrics, Ophthalmology

c. Private Dispensaries

below mentioned medical practices.

i. General Practice

ii. Dentistry

iii. Medical Labs and Bacteriology

iv. Radiotherapy

v. Physiotherapy

The Dispensary should have at least 3 General Practice clinics and no more than

2 specialized clinics.

Practitioner with at least 5 years of experience and not retired. The manager is

required to be full time employee for the dispensary.

13 Ministry of Health – Medical Licensing Department

xpected to grow further in the upcoming years. Patients are avoiding the


some of the following reasons;

Government Healthcare Services Private Healthcare S

Longer waiting time Less/no waiting time

Patients should schedule many

appointments to complete a single

treatment

Patients can complete their

treatments in fewer appointments

No Prestige Local patients are paying extra for

the social status associated with the

hospitals visited especially in the

Gynecology field : Government vs. Private Healthcare Services in Kuwait

Kuwaiti government has organized the private healthcare establishments based on their size

: the Ministry of Health divides the Private Hospital into two categories;

General Private Hospital: is a private hospital that has a minimum of 60 beds


at least provide all the following medical practices;

Internal Medicine

General Surgery

Pediatrics

Gynecology & Obstetrics

Anesthesiology

Private Hospital: is a private hospital that has a minimum of 40 beds


Ophthalmology, E.N.T., etc.

Dispensaries: are medical establishments that must at least

below mentioned medical practices.

General Practice

Dentistry

Medical Labs and Bacteriology

Radiotherapy

Physiotherapy


2 specialized clinics. The Manager of the dispensary must be a Kuwaiti General


required to be full time employee for the dispensary.

Medical Licensing Department

Country Snapshot


xpected to grow further in the upcoming years. Patients are avoiding the


Private Healthcare Services

no waiting time

Patients can complete their

treatments in fewer appointments

Local patients are paying extra for

the social status associated with the

hospitals visited especially in the

Gynecology field

Kuwaiti government has organized the private healthcare establishments based on their size

: the Ministry of Health divides the Private Hospital into two categories;

has a minimum of 60 beds


Private Hospital: is a private hospital that has a minimum of 40 beds


must at least one of the


The Manager of the dispensary must be a Kuwaiti General



Page 12 of 12

2. Private Clinics: are one room medical facilities that are manag

medical specialty. The clinic shall provide waiting areas and an examination room for

patients.

3. Private Healthcare Centers

practices;

a. General Surgery

b. Internal Medicine

c. General Surgery

d. Pediatrics

e. Gynecology & Obstetrics

The license is only given to Kuwaiti doctors with at least 10 years of continual

experience. The Healthcare Center should have a minimum of 6 general or specialized

clinics. The clinic cannot provide overnig

On a final note, with the rapid increase of the population in Kuwait and the high demand for the

free government healthcare services, the private sector can provide and benefit more from such

causes. Many factors play into the success of an

the right location, providing good services, studying the market research, and keeping in touch

with your client base.

: are one room medical facilities that are managed by a doctor with any


Private Healthcare Centers: are medical facilities that can provide all the following

General Surgery

Internal Medicine

neral Surgery

Gynecology & Obstetrics



clinics. The clinic cannot provide overnight admission.

with the rapid increase of the population in Kuwait and the high demand for the


causes. Many factors play into the success of any project including a healthcare facility; selecting


Country Snapshot


ed by a doctor with any


are medical facilities that can provide all the following



with the rapid increase of the population in Kuwait and the high demand for the


y project including a healthcare facility; selecting


Documents

Kuwait Healthcare Snapshot - 9.6 - Global Marketsglobalmarkets.com.kw/.../2010/06/Kuwait-Healthcare-Snapshot-9.6.pdf · Kuwait Healthcare Snapshot A summary of Kuwait’s Government