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Law No. 87 of 2024 to Regulate The Granting of Public Facilities’ Commitment to Establish, Manage, Operate and Develop Health Facilities

healthcare

On June 23, 2024, the President the Public Utilities’ Obligation to Establish, Manage, Operate, and Develop Health Facilities Act No. 87 of 2024. This law has sparked a wide debate regarding several issues, including concerns about the potential reduction or elimination of government support for healthcare and the fate of healthcare workers, etc.

On the other hand, the law is seen as opening great investment opportunities for Egyptian and foreign investors, promising great benefits to the Egyptian state, and providing various job opportunities for healthcare workers and other related sectors.

Details of The Law

This article aims to shed light on this update from a legal and economic perspective, away from the controversy surrounding it.

Firstly, the law grants significant investment opportunities to investors, whether through establishing new healthcare facilities or managing, operating, and developing existing ones. The importance of these investment opportunities lies in addressing the pressing problems faced by the healthcare sector in Egypt, which necessitates filling this gap and meeting the needs of a wide range of Egyptians.

This is accompanied by a significant diversity in healthcare service recipients in Egypt, including Egyptians and foreigners, leading to a growing demand for healthcare services of varying degrees and types.

Secondly, the law allows for concession agreements to be granted to Egyptians and foreigners, whether natural or legal persons, thereby opening up investment opportunities in the healthcare sector to foreigners and commercial companies without restrictions on nationality or legal form.

Thirdly, the law sets out a set of rules and procedures that must be followed by concessionaires, whether natural or legal persons. Some of these rules are related to the operation of medical facilities, such as the obligation to maintain the facility and its equipment and medical devices, as well as compliance with applicable laws and regulations governing healthcare facilities during the provision of various healthcare services.

Concessionaires’s Rules

There are also rules related to the concessionaires themselves, including the requirement that they possess the necessary competence and expertise to operate healthcare facilities.

The law has also set a minimum period of three years and a maximum period of fifteen years for concession agreements, after which time the healthcare facility and its equipment will revert to the state without compensation. The law also prohibits the transfer of concession agreements except with the approval of the Council of Ministers.

It is also required that concessionaires maintain a minimum percentage of 25% of employees currently working at existing facilities while maintaining their financial and employment rights and obtaining their consent.

Foreign Workers

For foreign workers in healthcare facilities subject to concession agreements, the law has set their percentage at no more than 15% for existing facilities or those established by the state after this law comes into effect. It is possible to increase this percentage to no more than 25% for facilities established by concessionaires.

Eventually, the decision granting a concession agreement is issued by a decision from the Council of Ministers encompassing all conditions and provisions of the concession agreement, including pricing mechanisms for healthcare services, financial supervision, and technical oversight, among other things. This decision is made based on an agreement with the concessionaire after obtaining approval from all relevant authorities.

Last Law Update: Traffic Law No. 17 of 2024 As Amended by Law No. 66 of 1973

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