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

Egypt
Is the legal framework robust enough to facilitate contracting between the public and
private sectors?
The Family Health Fund was established according to Ministerial decree no. 294 of
1999. The Decree acknowledged opening a bank account named “Family Health Fund of the
Health Sector Reform Programme”. This Decree was followed by Ministerial decree no. 160
of 2001 regarding the constituency of the governing bodies of the Fund, which laid the basis
for management of this account and its responsibilities.
Ministerial decree no. 109 determined the organizational structure of the Family Health
Fund at the central and peripheral levels, as well as its organigram, financial and
administrative system and sources of revenue and expenditures. The decree gives legal
support for contracting with private and nongovernmental organization providers.
What is the nature of the public sector organization that is outsourcing its services?
The Ministry of Health and Population has firm policies to enhance the level of health
care for all Egyptians in cities, villages and rural areas. The Ministry of Health and Population
aims to extend health insurance to all citizens and for all public categories. It also aims to
distribute health services fairly, in addition to presenting the services within a quality
framework and with the participation of the community to achieve maximum effectiveness.
To accomplish this, it is important to separate the service provision from its finance.
Separation of these functions ensures that the level of health services can be upgraded and
offered according to quality standards.
With this in mind, the Ministry of Health and Population decide to create a body
responsible to finance health services and make agreements with all those providing these
services, including the private sector and nongovernmental organizations. It was also decided
to apply the family physician system at all levels. In 1999, an account, the “Family Health
Fund”, was established by the Ministry of Health and Population decree no. 294.
What are the financing sources of the Family Health Fund?
In order for the Family Health Fund to perform its function, legislation had to be put
into place to organize the Fund activities. The sources of financing were identified through the
Ministry of Health and Population decree no. 160 for 2001.
Revenues that result from all contracted bodies including the Health Insurance Organization
with its branches and the health affairs directorates in the governorates.
Amounts given by the Ministry of Health and Population to support the Fund’s budget for the
performance of its tasks and commitments to execute the health reform programme.
Other donations and grants offered by different organizations.
Amounts given by the Ministry of Finance to support the Fund’s account.
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