KPMG released its latest research paper “The value of one riyal: Understanding healthcare financing in Saudi Arabia,” at this year’s Global Health Exhibition. The report, published on the sidelines of the conference with KPMG’s participation as exhibitor, delves deep into the Kingdom’s healthcare financing structure, providing a detailed analysis of current expenditure patterns, future sustainability challenges, and innovative financial models that could transform the sector.

The report reveals that Saudi Arabia’s healthcare spending has grown significantly, from SR22.8 billion ($6.07 billion) in 2007 to SR79.8 billion in 2021, driven by an aging population, the rise of chronic diseases, and rapid technological advancements.
The report highlights the importance of adopting value-based healthcare as a critical strategy for reducing unnecessary costs and improving patient outcomes. VBHC focuses on tying reimbursements to health outcomes, rather than the volume of services provided. By prioritizing value over quantity, this model encourages efficiency, better care coordination, and a focus on preventive measures that can reduce the long-term burden of chronic diseases such as diabetes and cardiovascular conditions.

Burhaan Khan, partner and head of healthcare at KPMG Professional Services, said: “Our research underscores the urgency of adopting innovative financial models to ensure the long-term sustainability of Saudi Arabia’s healthcare system. With rising healthcare costs, it is critical to shift toward models that prioritize value over volume and emphasize prevention and efficiency. By integrating advanced technologies and fostering public-private partnerships, we can build a resilient healthcare system that meets the evolving needs of the population.”

Another key finding from the report is the significant burden of out-of-pocket healthcare expenses, which account for 14 percent of total healthcare spending in the Kingdom. Of these expenses, 53 percent are directed toward medications, with another 14 percent spent on physician visits. This data points to the need for expanding insurance coverage and managing pharmaceutical costs more effectively to reduce the financial strain on households. KPMG’s findings call for greater efforts to broaden access to affordable healthcare, particularly for lower-income groups and those managing chronic conditions.

In terms of preventive care, the report highlights its enormous potential for cost savings. Every riyal invested in preventive healthcare — such as vaccination programs and health screenings — can yield a fivefold return by preventing the onset of costly chronic diseases.

The report also identifies technological integration, such as telemedicine and digital health solutions, as key tools for improving both efficiency and patient outcomes. These technologies not only improve access to healthcare but also enable more streamlined, data-driven decision-making, allowing healthcare providers to focus resources on the most critical areas.

Dr. Mohamed Fayek, associate director, healthcare at KPMG Professional Services, emphasized the growing importance of public-private partnerships in the healthcare sector, saying: “We forecast that increasing private sector participation could reach 65 percent by 2030. These partnerships are critical to sustaining the infrastructure and resources necessary to meet the Kingdom’s healthcare needs, while also driving economic growth. By collaborating with the private sector, the Saudi government can bring in new innovations, improve service delivery, and create new jobs in the healthcare field by 2030.”

As part of its expansion in Saudi Arabia, Burjeel Holdings, a leading super-specialty health care provider in the MENA region, introduced two health care solutions at the Global Health Exhibition 2024. The group unveiled Alkalma, a mental health and well-being platform, and Burjeel One, a specialized network of day surgery centers. Both initiatives align with Saudi Arabia’s Vision 2030 and are set to revolutionize health care delivery in the region. Dr. Shamsheer Vayalil, founder and chairman of Burjeel Holdings, briefed Saudi Minister of Health Fahad bin Abdurrahman Al-Jalajel on the new initiatives at the Riyadh event. 

Alkalma, born from a strategic joint venture between Burjeel Holdings and Colombia-based health care leader Keralty, marks a new chapter in mental health services. Integrating value-based care with specialized primary centers and health risk management, Alkalma is debuting in Saudi Arabia with an ambitious goal of reaching nearly 30 million patients across MENA over the next decade. Alkalma will enhance preventive care, manage health risks, and reduce hospitalizations, all while delivering a comprehensive care ecosystem. 

Burjeel One was also revealed at the exhibition, addressing the increasing demand for high-quality same-day medical services. These centers will offer minimally invasive procedures across key specialties such as oncology, advanced gynecology, orthopedics, and neurology. By incorporating advanced robotics and cutting-edge technologies, the first two Burjeel One centers, set to open in Riyadh by 2025, will ensure that patients receive world-class care without the need for prolonged hospital stays. 

At the exhibition, visitors were given insight into how Alkalma and Burjeel One are supporting the Kingdom’s shift toward a comprehensive health care model. 

“The launch of Alkalma and Burjeel One reflects our commitment to transforming health care in the region by integrating advanced technologies and value-based care models. These initiatives address the growing need for accessible mental health services and specialized ambulatory care while aligning with Saudi Arabia’s Vision 2030,” said John Sunil, CEO of Burjeel Holdings. 

The unveiling of Alkalma and Burjeel One builds on the success of PhysioTherabia, Saudi Arabia’s largest and fastest-growing physiotherapy network, which has expanded to 28 centers since its launch in 2023. These new services will enhance the network, offering integrated care from mental health to specialized surgery and rehabilitation.

Participating under the theme “Making Space for Innovation,” Burjeel Holdings showcased its commitment to advancing health care at the Global Health Exhibition. Attendees experienced live demos of advanced physiotherapy equipment, while Burjeel highlighted its expertise in complex care across specialties like fetal medicine, orthopedics, oncology, pediatrics, and cardiovascular care. 

During their visit to Burjeel’s booth, Dr. Majid Al-Fayyadh, CEO of King Faisal Specialist Hospital and Research Center; Dr. Mohammed Al-Abd Al-Aali, assistant minister of health; Dr. Ibrahim Alomar, assistant deputy minister for health investment, private sector participation, Ministry of Health; Dr. Khaled Alabdulkareem, assistant deputy minister for primary health care, Ministry of Health; and Dr. Shabab Al-Ghamdi, general secretary of CCHI, were introduced to the new brands the group is launching in the Kingdom.