MENA:Health insurers looking at value based pricing

Affordability and value-based pricing are driving innovative payment schemes in the regional healthcare insurance sector, as governments in MENA introduce mandatory health insurance and encourage funding from the private sector.

Dr Doaa Said, managing director of Maarefah Management, says that a topic of interest is implementing Value-Based Healthcare (VBH). Currently, a fee-for-service model is largely adopted. VBH changes the mindset because it provides a cultural shift and in a market where there is competition, the onus is on the value a provider brings to the healthcare ecosystem.

The MENA region faces an unparalleled and unprecedented rise in demand for healthcare over the next two decades, according to a report by Trade Arabia News Service. It is estimated that total healthcare spending in the region will reach $60bn in 2025, up from $12bn today.

Source: Middle East Insurance Review