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03 March 2024

Dubai Health Authority announces results of the Health Accounts System for Dubai

Published
By E247

Dubai Health Authority has announced the results of the Health Accounts System for the Emirate of Dubai (HASD) 2022, which highlights the strength, dynamism, sustainability and remarkable development of the emirate’s healthcare sector.

According to the report, healthcare expenditure in the region reached AED21.4 billion, with AED21.2 billion spent within Dubai and AED179 million outside the emirate. The healthcare expenditure constituted 5.2% of Dubai's total GDP, while per capita spending on healthcare was estimated at AED4,525 in 2022.

In terms of healthcare expenditure, 52% of the total was spent in hospital settings, 23% in clinics and 15% in retail pharmacies and ancillary providers. Of the total, 61% was spent on curative care, 15% on medical goods and 13% on ancillary services.

The results also show that of the AED21.4 billion spent on healthcare, 43% was funded by the government, 47% by private insurance and 10% by families and individuals.

The HASD report provides a detailed overview of the transformations and developments witnessed by the healthcare sector over the last ten years. The report highlights that Dubai’s total current healthcare expenditure has doubled over the past decade with a compound annual growth rate (CAGR) of 8%, which demonstrates the sector’s capacity to keep up with population growth and respond to the community’s needs.

Furthermore, the report shows that per capita health expenditure has increased at a CAGR of 3.8% from 2012 to 2022.  

In terms of the trend of current healthcare expenditure (CHE) as a percentage of GDP, the report highlights that the healthcare sector’s contribution to GDP has been gradually increasing over the past ten years from 3.1% in 2012 to 5.2% in 2022.

His Excellency Awadh Seghayer Al Ketbi, Director General of the Dubai Health Authority, said the remarkable progress witnessed by Dubai’s healthcare sector has been driven by the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. The emirate’s steadfast commitment to excellence has also been guided by the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai. HH Sheikh Hamdan bin Mohammed's oversight has enabled Dubai to achieve the highest standards of healthcare and the provision of globally recognised, accessible, and specialised medical services to all members of the community in Dubai, spurring the rapid development of the sector.

Al Ketbi further said that aligned with Dubai’s ambitious vision, DHA aims to ensure the sustainability, dynamism and growth of this vital sector, in tandem with the evolving needs of one of the world’s fastest growing cities. DHA relies on clear methodologies and evidence-based data such as the health accounts report for informed decision-making and future strategic planning to address the sector's requirements and priorities. This reflects DHA's proactive approach to shaping the future of healthcare in line with the needs of Dubai's burgeoning population and the rapidly changing medical landscape.

Saleh Al Hashimi, CEO, Dubai Health Insurance Corporation (DHIC) Sector said: “The Health Accounts System for Dubai ensures transparency in the sector and is a vital tool for advancing its sustainability and growth. HASD made a substantial contribution to tracking the evolution of the sector by providing comprehensive information on key financial indicators. Prior to the implementation of the emirate’s mandatory health insurance scheme called the Insurance System for Advancing Healthcare in Dubai (ISAHD), the out-of-pocket spending on health was above 20% and  voluntary health insurance contributed less than 40%. The HASD monitoring of health expenditures revealed that with the introduction of mandatory health insurance (MHI), out-of-pocket spending dramatically decreased and has been stable for the past six years at between 9% and 12%. This clearly shows how the mandatory scheme has improved affordability and accessibility to  health services in Dubai.”

“HASD has also shown that between 2012 and 2015, prior to the implementation of the ISAHD scheme, healthcare spending was increasing at the rate of 13%. However, this declined significantly (5%) between 2016 to 2022, highlighting the positive impact of the mandatory health insurance,” he added.

Al Hashimi also highlighted that the share of health expenditure outside of Dubai has dramatically reduced over the past ten years.

Wedad Ahmed Binbraik, Director of Health Economics and Insurance Policies Department at DHA’s Dubai Health Insurance Corporation said: “The Health Accounts System for Dubai is a crucial tool to understand the flow of funds in the health sector. It facilitates the evidence needed to monitor current policies, develop and manage health financing, and mobilise resources for strategic health investment. Moreover, it helps clearly outline health and research priorities for advancing the development of the sector. We are in a unique position to analyse a decade's worth of data to assess achievements, plan collaboratively with healthcare partners, and develop initiatives to achieve the highest quality of healthcare, ensuring the sustainability and growth of this sector that is vital to the wellbeing of our community.”
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Dr. Meenu Mahak Soni, Health Economist at DHIC, DHA said: “The methodology used in HASD is based on the international classification of System of Health Accounts (SHA) 2011 (World Health Organization, 2011.) By systematically tracking the flow of expenditures in the health system, we are able to improve governance and support evidence-based policy-making.”