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

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Al-Mowasah hospital<br />

Jordan<br />

Al-Mowasah hospital is a private for-pr<strong>of</strong>it 160-bed hospital. It was opened <strong>in</strong> 2000 <strong>in</strong><br />

Marka Region, east <strong>of</strong> Amman. <strong>The</strong> hospital is located <strong>in</strong> a low- to middle-<strong>in</strong>come, highly<br />

populated area that lacks public and private hospitals. It is well built and equipped to<br />

accommodate most medical and surgical specialties.<br />

<strong>The</strong> hospital economic feasibility study was based on the assumption that the people liv<strong>in</strong>g<br />

<strong>in</strong> East Amman will not go to hospitals <strong>in</strong> west Amman if they have modern and well-equipped<br />

hospital near to their residency.<br />

Before sign<strong>in</strong>g the contract with the M<strong>in</strong>istry <strong>of</strong> Health, the hospital was operat<strong>in</strong>g 48 beds<br />

with 20% average occupancy. As a result <strong>of</strong> the low occupancy rate, the hospital faced f<strong>in</strong>ancial<br />

problems. <strong>The</strong> monthly loss was about JD 50 000 (US$ 75 000), as shown <strong>in</strong> Figure 3.<br />

Figure 3. Net loss <strong>of</strong> Al-Mowasah hospital before contract<strong>in</strong>g with the M<strong>in</strong>istry <strong>of</strong><br />

Health<br />

134

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