Healthcare costs in Oman rising too fast, say experts

Muscat: Rise in health insurance penetration, tougher ministry regulations and expensive equipment are the major reasons for rise in healthcare bills according to experts.
Several health industry experts locally and abroad have expressed concerns over rising healthcare bills, at the recent Health Expo held at the Oman Exhibition Centre.
Arjun Panesar, CEO of diabetes.co.uk mentioned “Healthcare bills spiralling out of control” while Yusuf Al Balushi, Head of Technology Transfer at the Ministry of Foreign affairs said “Healthcare costs in Oman are rising every year.”
According to Dr. Sanjay Dalal, who runs a clinic in Muscat, high rents, unnecessary quality standards by the ministry and health insurance are the major reasons for the rise in healthcare costs.
Difficult time
“Smaller clinics face a very difficult time with current trends and have to put the burden on their patients to stay in operations. High rents with quality standards in line with large hospitals are an unfair expense for smaller clinics,” he said.
He expressed discontent with a potential law of mandatory health insurance which, according to him, can lead to costs that will be unaffordable for most individuals in the future.
“The healthcare costs would be going up due to the advanced equipment that is being used by hospitals currently. Malpractices in the sector along with growing health insurance could also lead to higher healthcare costs,” according to Samra Al Barwani, Director of Quality Control at MoH.
Philip K. Philip, CEO of Muscat Insurance, says that they have had 3 to 5 per cent annual growth in healthcare spending. However,due to a large number of companies offering health insurance the premium has reduced further.
He also mentioned that there were plans by the government to control drug costs, which would have helped to control healthcare bills but due to several reasons it was not implemented.
“Going to a doctor now for something as simple as a common cold takes huge toll on your wallet. The difference in going to a doctor now and 10 years ago is tangible considering the costs. My insurance package does not cover several important facilities in the hospital and therefore I have to spend hundreds of rials every month from my side to cover this,” lamented a middle aged gentleman with a cardiovascular illness.
The healthcare industry in Oman is one of the most lucrative sectors which is predicted to grow at 15 per cent annually over the next decade.
GCC spending in this sector is projected to rise to more than $60 billion in 2025 on account of the growing population, prevalence of lifestyle related diseases and health insurance penetration, which makes it the region with the highest growth rate in the world. In 2014, the healthcare spending in Oman was $2.2 billion, and by 2024 it is projected to top $4 billion.
According to Rebecca Samuel, Director Consulting- Healthcare, ICME International AG, many international companies would be interested in Greenfield projects in Oman due to its highly rewarding health sector and one of the reasons for this is the mandatory health insurance law that maybe passed.