After the 2008 recession in the United States, Laurie, Felland, Grossman and Ha studied the Health System Changes in the United States and summarized their key findings after visiting the dominant hospitals in twelve metropolitan communities. They found out that during the recession, the healthcare sector experienced huge operating losses. As a result, most hospitals had to react by adjusting their workers’ benefits and salaries, scaling back their investments and expenses, increasing their productivity, and by reducing staff. Because of the increase in hospital premium rates, most hospitals experienced reduced number of patients who regularly visited for certain procedures and checkups. Based on this, while some people were unable to afford health coverage, most people shifted to the stable and cheaper health insurance coverage schemes like Medicaid and Medicare, which were previously only for lower-income people. According to Laurie, Felland, Grossman and Ha (3), the shift was a cost-effective way of ensuring that hospitals acquired constant monetary gains since they would be able to maintain constant patient demands. This paper discusses how a similar trend of people shifting to universal healthcare schemes has become evident in the United Arab Emirates (UAE).
Statistics shows that the UAE faces high demands for health care services because of its high numbers of an aging population and expatriates (Mohammed, Sabah, & Jinan 296). Moreover, according to Colliers International (2), the operational needs and high population growth rates of the UAE healthcare sector are becoming increasingly complex. Hence, as a result, the U.S.-U.A.E. Business Council (12) states that the UAE falls among the global top 20 countries that spend the most on healthcare systems per capita. As a result, the country’s healthcare system has been progressively directed towards acquiring a universal healthcare for its people. Currently, just like the United States, the UAE provides health care for all its citizens whereas it is mandatory for non-citizens to subscribe for health insurance (WHO 1).
On a similar note, Taha, Sharif,and Blair (1), the increased the expenses of the UAE healthcare sector have forced the government had to review its health financing strategy by introducing new financing models. One model was the introduction of several health insurers to help its population afford healthcare (U.S.-U.A.E. Business Council 8). There is the National health Insurance Company called Daman that offers federal health insurance for organizations and individuals working in the UAE. Then there is another healthcare scheme called the Abu Dhabi Basic Plan that was formulated for expatriates with low-income jobs. Thirdly, there is Thiqa that caters for the country’s nationals. These insurers ensure that all the people living in the metropolitan UAE region have access to affordable healthcare services (U.S.-U.A.E. Business Council 8). In addition, just like America’s Medicare and Medicaid, the multiple insurance schemes offer flat and stable premium rates for patients. This enables them to maintain their patient demand. It also ensures that their hospitals have a steady income and lesser operating expenses (Mohammed, Sabah, and Jinan 259).
The similar trends by the both America and the UAE indicate that they share a similar evolution of their healthcare sectors. They also show why the introduction of compulsory health insurance for Americans and UAE citizens has led to high returns on investments in healthcare, which encourages the introduction of more private hospitals as years go by. This, on the other hand, has stabilized the economies of the two countries by creating more jobs and stimulating higher profit margins in the sector.
References
Colliers International 2013, United Arab Emirates: Healthcare Overview. Web.
Laurie, Felland, Grossman and Ha Tu. “HSC’s 2010 SITE VISITS: HEALTHCARE MARKETS WEATHER ECONOMIC DOWNTURN, BRACE FOR HEALTH REFORM”. The Center for Studying Health System Change 135.1 (2011): 1-8. Print.
Mohammed, Sabah, and Jinan Fiaidhi. Ubiquitous Health and Medical Informatics: The Ubiquity 2.0 Trend and Beyond. Hershey, PA: Medical Information Science Reference, 2010. Internet resource.
Taha, Sharif, and Blair I 2014, “Financing Health Care in the United Arab Emirates”. Web.
U.S.-U.A.E. Business Council 2014,The U.A.E Healthcare Sector. Web.
World Health Organization (WHO) 2014, United Arab Emirates: Country Cooperation Strategy at a Glance. Web.