Egyptian Cabinet agrees to issue regulation allowing foreigners to manage and operate hospitals

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Egyptian Cabinet

Egypt Daily News – The Egyptian Cabinet has approved a draft decision to issue executive regulations for the law governing the granting of public facilities’ obligations for the establishment, management, operation, and development of health facilities, as outlined in Law No. 87 of 2024.

These executive regulations allow both Egyptian and foreign investors—whether individuals or legal entities—to initiate, manage, and operate new health facilities.

Additionally, they permit the management, operation, and development of existing health facilities by assigning them a public utility commitment while bypassing the stipulations of previous laws such as Law No. 129 of 1947 (which pertains to public utility obligations) and Law No. 61 of 1958 (which concerns concessions for investing in natural resources and public facilities).

The new regulations will adjust the terms of any existing concessions in accordance with established methods and contract procedures dictated by the law.

The overarching objective of these commitments is to enhance the quality of health services for citizens by improving existing facilities and establishing new ones to ensure equitable access across various geographical locations, while also prioritizing citizens’ rights to health and comprehensive healthcare aligned with quality standards.

The regulations provide guidelines for granting obligations, which include terms regarding the government’s share, pricing for health services, mechanisms for technical and financial oversight, and conditions for reinstating facilities prior to the conclusion of their terms.

These processes will be initiated by a decision from the Council of Ministers on the recommendation of the relevant minister, following approval from the appropriate authority associated with the health facility. The relevant authorities are required to respond to requests for their opinions within one month.

Furthermore, the executive regulations contain provisions to safeguard the rights of beneficiaries under the Comprehensive Health Insurance System Law and emphasize that the obligations do not diminish public health services, including preventive and emergency care, or services related to disaster response and epidemic management, which the state must provide to citizens free of charge.

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