Performance of Contract Managed Hospitals in Saudi Arabia

Ahmed Al Shaikh (2001)

Public Hospitals in Saudi Arabia in general and MOH hospitals in particular are under dual pressures. In one direction the general public is demanding high quality services in all hospitals. In the opposite direction government is imposing strict rules to constrain government spending to limit the deficit on the government’s annual budget caused by the drop in the oil prices which started in early eighties. Contract Management (CM) was introduced in Saudi Arabia in the late 1970s to improve the operating capabilities of the hospitals. However increases in operating costs induced by contract management has raised a very important question in Saudi Arabia, namely- what is the impact of contract management on the performance of hospitals?

The primary purpose of this research was to evaluate the performance of the Saudi Arabian Ministry of Health hospitals under the three types of management:

  • Self Management
  • Comprehensive Contract Management
  • Full Service Contract Management

A second major purpose was to improve understanding of the differences in hospitals’ performance, and to explore the impact of the types of management and other hospital characteristics on performance; e.g. size and demographic issues.  Understanding these relationships will have policy consequences for resource allocation, efficiency and quality in the delivery of hospital care.

The research centred on an investigation of the application of quantitative methods, including data envelopment analysis and multivariate statistics to compare the performance of hospitals in Saudi Arabia.

Funded by the Saudi Arabian Ministry of Health.