The healthcare system in Saudi Arabia is undergoing a period of significant transformation, driven by both internal and external pressures to enhance its efficiency, sustainability, and accessibility. This paper delves into the intricate details of healthcare expenditure within the Kingdom, presenting a comprehensive analysis of how financial resources are allocated, managed, and utilized across various sectors of the healthcare system. By examining government spending, private sector contributions, and out-of-pocket expenses, this study aims to provide a nuanced understanding of the current state of healthcare financing in Saudi Arabia and its future trajectory.
Saudi Arabia's healthcare system has historically been characterized by substantial government investment, aimed at providing comprehensive healthcare services to its citizens at little to no cost. The Ministry of Health (MOH) has been the primary financier, channeling a significant portion of the national budget into the healthcare sector. However, with rising costs driven by an aging population, increased prevalence of chronic diseases, and rapid advancements in medical technology, the sustainability of this funding model is increasingly being questioned. This paper explores the dynamics of these rising costs and their implications for the government budget and household finances.
A critical aspect of this paper is to comprehensively analyze the expenditure patterns in Saudi Arabia's healthcare system and understand how these patterns impact its long-term sustainability. This study aims to provide a detailed examination of where and how financial resources are allocated within the healthcare sector, scrutinizing the proportions spent on public versus private healthcare, and the burden of out-of-pocket expenses on households. By understanding these expenditure patterns, the paper seeks to illuminate the sustainability challenges facing the system.
