It Is A Waste Of Public Funds To Sign A Contract With A Health Insurance Hospital Before Giving Service

05 February 2022 Kuwait
In response to a parliamentary discussion from MP Dr. Hassan Jowhar, Minister of Health Dr. Khaled Al-Saeed stated that the health insurance hospitals lack a clear vision and are unable to provide the necessary health services on the basis of which the service was awarded to these hospitals. He also stated that the Ministry has not concluded a contract with the insurance companies because they have yet to provide a complete picture of its health system.
 
The development of health insurance hospitals designated for expatriates is not within the Ministry of Health's competence, according to Al-response, Saeed's which Al-Jarida daily received a copy of, and the ministry did not execute the contract with the firm to preserve public funds.
 
The insurance business is permitted to collect the value of health insurance from expatriates immediately upon signing the contract, according to the bidding document granted to the Insurance Regulatory Unit, which the government deemed inappropriate.
 
He continued, "If the ministry concludes this contract in light of the incomplete health system, and the Ministry of Health is responsible for providing health services to expatriates, but the health insurance company is given the right to collect the value of the health insurance without providing any services, it will be a waste of public money and a waste of the ministry's rights, as the ministry will be responsible for providing health services to expatriates."
 
Because the goal of establishing the company to provide basic health services to expatriates is to relieve the burden on government hospitals and healthcare centres, as well as to develop the health system in the State of Kuwait as an initiative for a true partnership between the public and private sectors, by activating the role of the private sector in providing health sector services, this contrasts the reality of health insurance hospitals' inability to provide basic health services.
 
He continued, "If we imagine that a contract was signed with the company, it will automatically collect the value of the health insurance according to the terms and conditions, and the company will collect an estimated 260 million dinars during the first year without providing any service, and the Ministry will provide the service without any consideration, and the 5% of the aforementioned does not equal the value of the services that will be provided to the Ministry."
 
He said that that because the ministry is still providing health services at various levels in compliance with the terms of Law No. 1 of 1999 on expatriate health insurance, it is allowed to collect the value of the health insurance as well as payments for the services given.
 
According to Civil Law, there is no right to financial compensation unless in exchange for a service provided (and there are no tangible services provided by the company that are entitled to financial compensation), and if the Ministry waives part of its revenues without an actual service provided by the company, the Ministry will bear the expenses of caring for expatriates who live in the area.
 
He continued, "This action by the ministry is in compliance with Cabinet Resolution No. 220/2 of 2018 regarding taking steps and measures to activate expenditure control and serious justification of spending, as well as finding ways and means to maximize revenues," mentioning the Audit Bureau's principles of the necessity of preserving public money.
 
He mentioned that the Fatwa and Legislation Department was contacted on November 28, 2019, to inquire about the legality of providing health care services to expatriates through private sector hospitals due to the lack of suitability of the Health Insurance Company's hospitals, and that if this is not done, it will be a reward for the company's failure to implement the contract's terms, which is contrary to sound legal logic.
 
In response to the deputy's demand that the Ministry of Health increase the number of hospital beds a
nd open new hospitals, the minister stated that the ministry's development plan is to increase occupancy in hospitals, which has resulted in the closing of buildings to increase bed capacity in the following hospitals:
• 240-beds, Al-Razi Hospital
• 415-beds,  Al-Amiri Hospital
 
The objective is to expand the number of beds in the following hospitals between 2021 and 2026:
 
• The New Al-Sabah Hospital has 317 beds and a 78.48 percent completion rate.
• The new Communicable Diseases Hospital, which has 224 beds and a 73.23% completion rate.
• Kuwait Cancer Control Center has 618 beds, accounting for 36.89 percent of the total.
• Farwaniya Hospital, which has 955 beds and is 70 percent full.
• Al-Adan Hospital has 637 beds and a 65.28 percent occupancy rate.
• The Ministry of Public Works and Kuwait Municipality are working together to build the new Ibn Sina Hospital, which will have 296 beds.
• The Medical City in Sabah Al-Ahmad Residential City is now in the design phase and will have 500 beds.
 
In response to a parliamentary question from Dr. Muhammad Al-Huwaila about the reasons for the delays in the implementation of major hospital expansion projects, the Minister of Health said that, according to the statement of the involved sector concerned with the ministry, it is a result of the repercussions of the spread of the new Corona virus covid-19 and the decisions taken by the authorities, in addition to the preventative measles vaccinations.
 
The Nursing Services Administration Building in Al-Sabah Medical District, the new Kuwait Cancer Control Center building, the new Al-Sabah Hospital, new Al-Farwaniyah Hospital buildings, new Al-Adan Hospital systems, and a new building at the Communicable Diseases Hospital were all impacted.
 
Accordingly, the above-mentioned project contractors submitted claims to extend the time of their contracts with the ministry, which were studied and our recommendations were brought up in this regard, and in coordination with the regulatory authorities, the contract for the Nursing Services Administration Building project in Al-Sabah Medical District was enlarged for 400 days, and 10 month contract for a new construction project at the Kuwait Cancer Center.
 
A project for new buildings in Farwaniya Hospital was contracted for six months, and coordination with regulatory authorities is underway for the new Al-Sabah Hospital project, new buildings in Al-Adan Hospital, and a new building in the Communicable Diseases Hospital to determine the contractors' eligibility for contract extensions.
In addition, in responding to a parliamentary question from Dr. Saleh Al-Mutairi, the Minister of Health stated that the following are the most important criteria and requirements followed by the Ministry of Health in cases of sending patients abroad, as regulated by ministerial decisions issued regarding the regulation of treatment abroad: The delegation of citizens for treatment abroad is limited to cancer, insolvable surgeries, critical cases, and intractable non-surgical cases (for adults and children) for which the Higher Medical Committee for Treatment Abroad "surgical — non-surgical" decides on treatment outside the State of Kuwait due to a lack of treatment in the Ministry of Health's hospitals and centres after reviewing the reports of the specialized medical committees.
During the period of March to May 2021, 874 instances were transferred abroad for treatment, he said
 
: 433

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