The role of contractual arrangements in improving health sector ...

• Advanced medical equipment of large
hospitals.
• Skilled technical workforce.
• Good reputation outside Jordan, since
32% of hospital revenues are from
foreign patients.
• More quality services compared with
government hospitals.
Direct effect
Outside environmental effect
• Relations with other players in the sector
(public sector, insurance and
pharmaceutical companies).
• Misleading information regarding the
performance of private hospitals.
• Laws and regulations that organize the
sector with related parties.
• Low income levels per capita.
• Potential competition.
Jordan
Jordanian private hospitals
• Inefficient role for the Private Hospitals Association.
• Cash flow problems.
• Shortage in qualified nurses.
• Less advanced equipment for the small hospitals
compared with large hospitals.
• Excess capacity and overlapping in certain medical
equipment and services.
• The bed occupancy rates are low (44%) compared with
other health services providers.
• Lack of skilled management expertise.
• Inefficient cooperation within the sector.
Source: Adapted from Deloitte & Touché (M.E.) “Financial and Regulatory Study of Jordanian Private Hospitals”,
2001.
Figure 1. Strategic analysis of the private hospital sector in Jordan
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Direct effect
Outside environmental effect
• Privatization of public institution creates
additional demand on private hospital sector.
• The Higher Health Council, headed by the
Prime Minister, is determined to regulate the
hospital sector to maintain its competence and
excellence on the regional level.
• The implementation of a national health
insurance plan is expected to increase demand
on health care services, which will directly
influence the performance of private
hospitals.
• Investment incentives and tax exemptions.