“Health Privatization” draft law : Investment for Egyptians’ Lives or at their Expense?

On Monday, May 20, 2024, the House of Representatives approved in principle a draft law submitted by the government. This law pertains to the delegation of the establishment, management, operation, and development of state-owned healthcare facilities to Egyptian and foreign investors, excluding primary healthcare centers and family health units, as well as blood and plasma collection operations.
This draft law, which perpetuates the covert privatization policies of the healthcare sector, represents a withdrawal of the state from one of its most strategic sectors. It risks transforming healthcare services provided to citizens into a purely commercial activity, potentially neglecting the public interest and citizens’ right to health as enshrined in the constitution and both local and international legislation.
Moreover, the draft law allows certain public hospitals to exit the comprehensive health insurance system and not adhere to its service pricing. Investors are merely required to allocate a percentage of total services to beneficiaries of the comprehensive health insurance law. This could undermine the effectiveness of the system and threaten access to essential healthcare services, particularly for the most vulnerable groups in society.
The fate of employees in these facilities remains uncertain, as the draft law only obligates investors to retain at least 25% of the existing workforce, subject to increase. This raises legitimate concerns about the medical staff and employees in these facilities, as well as about guarantees of quality and integrity in the delivery of healthcare services, pricing rules, and other matters.
This comes less than three months after the issuance of Decree No. 75 of 2024 concerning the regulatory framework for local government unit-affiliated public health facilities and hospitals. The decree increased charges for free services provided to citizens, including outpatient visits and patient visit fees, reduced the minimum percentage of free treatment to 25% of beds and internal departments, and raised the prices of services offered by these health facilities and hospitals.
The Egyptian Center expresses deep and grave concerns about the draft law and over the continued legalization of such policies, which gamble with the health of Egyptians. It calls on the President not to ratify the draft law if passed finally by the House of Representatives, and to reconsider it through a societal dialogue involving all concerned parties and civil society.
The Egyptian Center recalls the Administrative Court of the State Council’s ruling in September 2008, which rejected an attempt to privatize the General Organization for Health Insurance. The ruling affirmed that health services are a fundamental component of life, access to which must be free from control, and can only be ensured by the state providing this service directly through its ministries and public institutions. Nor may it deviate from this by delivering services through its economic facilities that aim for profit. The ruling stated that health rights should not be subject to investment, bargaining, or monopoly.