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epstein-index

---
title: "House Oversight: Estate Documents (Nov 12) (HOUSE_OVERSIGHT_016166)"
source: "House Oversight: Estate Documents (Nov 12)"
sourceUrl: "https://www.justice.gov/epstein"
date: "2026-01-01"
category: "House Oversight"
eftaNumber: "HOUSE_OVERSIGHT_016166"
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Population
Public
Hospitals
Beds
Table 18: Public and private hospital and bed distribution
Riyadh
7,717,467
47
7,937
169
Beds/hospital
Private
Hospitals
Beds
34
Beds/hospital
4,554
134
Total
Hospitals
81
Beds
12,491
Beds/hospital
154
Jeddah
4,224,568
13
2,993
230
33
3,109
94
46
6,102
133
Source: BofA Merrill Lynch Global Research, Ministry of Health
Other
18,828,340
210
29,370
140
74
8,001
108
284
37,371
132
Chart 56: Public and private hospital and bed distribution
100%
80%
60%
40%
20%
0%
Riyadh
Jeddah
Other
• % population
•% public hospitals • % public beds
• % private hospitals _ % private beds
• % hospitals
• % beds
Source: BofA Merrill Lynch Global Research, Ministry of Health
Hospital quality would be key to attracting private buyers
The government has not invested in hospital infrastructure and some hospitals may
require substantial investment by any buyer, if they are acquired at all. One Saudi
hospital operator has said that there is no way it would seek to acquire government
hospitals for that reason.
Bidders would likely want to obtain scale benefits from multiple purchases
Operating hospitals has benefits of scale in terms of centralising certain non-medical
services (e.g. purchasing, catering, laundering) and allocating central costs over a greater
revenue base. The greatest financial benefit would come from acquiring groups of
hospitals to maximise these benefits. There would likely be cases where staff, and/or
high net worth individuals chose to bid for individual assets.
Privatisation proceeds could defray some of NTP cost
Amounts raised from any privatisation would reflect the degree of competition for
individual assets as well as level of reimbursement and the profits any acquirer could
generate. In terms of pure asset values we assume the Riyadh and Jeddah hospitals (60)
would be worth more than those elsewhere (210), simply because of the greater
population currently and higher expected future growth. Government hospitals are likely
ower cost than that of private facilities given they are not competing on the quality of
Iccommodation offered. Arbitrarilv assuming US$100m for hospitals in leddah anc
Riyadh and US$50m elsewhere would imply proceeds of $16.5bn (SAR61bn). If every
hospital were sold then it could more than cover the SAR23bn allocated to the MoH for
the NTP. That seems unlikely however; there will be hospitals that require substantial
investment and aren't worth the indicative figures we have used above, or are in areas
where profitability means there will be no return for the private sector at that level of
acquisition.
Reforms could attract additional competition
Incumbent private hospital operators are best placed to expand and are seen as the
natural buyers of any privatised assets. However, any substantial privatisation process,
or the potential created by widespread adoption of private health insurance in general,
could attract interest from foreign investors or operators. We note only a small number
of international hospital groups to date have experience of successfully operating in
multiple countries (ІНН, Mediclinic), and we think Saudi Arabia could be too challenging
Structure of insurance market needs to be set
There are a number of ways the government could roll-out private health insurance
more widely:
• Set up its own insurance company
56 GEMs Paper #26 | 30 June 2016
P Merrill Lynch
HOUSE_OVERSIGHT_016166