Jordan – Private Hospitals Obtain Libyan Concessions after Threatening Boycott

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Jordan’s Private Hospital Association (PHA) Executive Director Abdullah Hindawi, whose organisation represents more than 60 hospitals, stated that Libya accepted to change the “unfair” rates it was paying and to ease procedures for payments to Jordanian hospitals. Accumulated arrears closing in on $70 million.Earlier the association announced that its members had stopped admitting Libyan patients, citing the Libyan government’s failure to pay treatment bills.

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This is a story right out of one of our Top 10 Plus One Global Healthcare Trends; “Private Healthcare, Armed Conflict, and Political Backlash.” And it is not a good story for healthcare investors.

As is now becoming a reality, the “Arab Spring” is a process rather than a fixed event, or even a revolution. And this will highlight the ongoing, perennial challenge for healthcare the world over: how to balance medical care with unreimbursed costs.

Bad debt and slow collections are always a challenge for all healthcare providers. But in a time of war, or civil unrest, many governments will be hard pressed to make payments, especially to the private sector. And many governments, including Jordan, will be most reluctant to make payments for non-citizens….HK

Note: The Libyan government recently paid around JD100 million($140.6 mln USD) to the Kingdom’s hotels that accommodate Libyans.

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On March 18, 2012
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