Egypt's Ministry of Health is assessing preliminary interest from local and international firms seeking to manage, operate, and develop five major public hospitals, a ministry source told Al Manassa.
The unnamed official said the interest so far consists of “letters of intent” from several companies, with no binding financial or technical offers yet submitted. These letters represent the earliest stage in the investment process, intended to gauge serious interest and initial capabilities before moving into detailed proposals.
The hospitals under consideration are Heliopolis Hospital, New Cairo Hospital, Sheikh Zayed Specialized Hospital, Sheikh Zayed Al Nahyan Hospital, and Agouza Hospital.
According to the source, some letters were submitted directly to the Ministry of Health, while others were routed through the General Authority for Investment and Free Zones (GAFI). Prospective partners have conducted site visits to evaluate the infrastructure and investment potential.
“We are now reviewing the financial and technical credentials of the interested parties, including their track record in running healthcare institutions,” the source said. “At this point, there are no legal or administrative commitments. Any future partnership will comply with existing laws and regulations and must prioritize public interest.”
A year ago, the official spokesman for the Ministry of Health and Population Hossam Abdel Ghaffar announced that new legislation would allow the private sector to manage and develop over 500 of Egypt's underutilized 'integrated hospitals' nationwide. These facilities were originally designed to bridge the gap between primary care and specialized treatment by providing basic services in less crowded locations.
However, the initiative has sparked concern among medical professionals and advocacy groups. Dr. Osama Abdel Hay, president of the Egyptian Medical Syndicate, told parliament that while investors have the right to build private hospitals, they should not be permitted to run existing public ones that serve low-income communities.
Despite this opposition, President Abdel Fattah El-Sisi ratified Law no. 87 of 2024 on June 24, 2024. The law allows Egyptian and foreign investors—whether individuals or corporations—to manage, operate, and develop public health facilities under a public utility concession framework.
Prime Minister Mostafa Madbouly defended the policy in April, noting that many public hospitals suffer from outdated infrastructure. He emphasized that the government would not sell or privatize hospitals outright, but would instead seek external expertise to improve services.
Details of such partnerships began to emerge earlier this year. In February, Al Manassa published the terms of a 15-year agreement governing the operation of Hermel Hospital. Under the deal, the Ministry of Health will receive 3% of revenues for the first five years, rising to 5% thereafter.
Seventy percent of the hospital's beds will serve cancer patients covered by public insurance or government-funded treatment, while the remaining 30% will be used by the private operator at market rates.
The policy has already sparked courtroom battles, as critics move to challenge its legality and broader implications for public healthcare. Human rights lawyer Khaled Ali, representing six doctors including former syndicate board members Mona Mina and Rashwan Shaaban, filed a lawsuit with the Administrative Court seeking to annul the government’s decisions.
The lawsuit argues the law is unconstitutional and endangers both public health and medical professionals' job security.
Among the lawsuit's allegations is a provision that allows private partners to lay off up to 75% of hospital staff, which critics say threatens continuity of care and disrupts medical training programs in key teaching hospitals.
