Health Sector ICV: A pillar for sustainable development

With the new Vision 2040, Oman's ICV has evolved into a cornerstone of sustainable growth, enabling further progress. Historically focused on the oil and gas industry, the ICV initiative aims to enhance local employment, job creation, national capacity, and localize production and services.

Alongside the global economy, the COVID-19 pandemic showcased the growing need for Oman to develop a self-reliant healthcare system. Oman’s health sector, which is still undergoing reform and expansion, stands to benefit from the integration of ICV principles. Oman strives to achieve a robust economy while enhancing the health outcomes of its citizens.

Health services are very crucial to any government as it is tangentially linked to the stability and productivity of the nation. In Oman, the investment in health infrastructure is of economic value and useful from a humanitarian perspective.

ICV ensures in healthcare: Improved health security of a nation; Reduced dependence on imported medical services, equipment, and consumables; Increased access to healthcare that is cost-effective and regionally available; Stimulated local R&D for innovation; and Employment opportunities for Omanis in the medical and paramedical professions.

In addition, with the increase in spending on health worldwide, having a competitive health economy within Oman will help reduce the outflow of foreign currency and allow reinvestment into the country.

Development of Local Workforce: One of ICV’s primary initiatives is providing employment and facilitating training for Omani nationals. In healthcare, this means investing in: Healthcare related universities and colleges; Professional development programmes for healthcare personnel; Doctor residency and specialization programmes; and International scholarships and exchange study programs with foreign universities.

Efforts such as those of the Oman Medical Specialty Board (OMSB) aid in the development of Omani healthcare professionals.

Procurement and Manufacturing of Goods: The COVID-19 pandemic has shown the world the weaknesses of global supply chains. Oman is able to: Decrease its dependence on imported prescription medicines, consumables, and equipment; Attract foreign businesses to set up production facilities within the country; Encourage the formation of local manufacturing facilities for IV fluids, syringes, PPE, and other generic medications. National Pharmaceutical Industries Co (SAOC) is example of this localization strategy.

Infrastructure Development: The construction of hospitals, clinics and medical cities gives opportunities to local construction companies, architects, engineers, and IT service providers. The development of health infrastructure under ICV incorporates: Giving preference to local companies for construction and facility management of the buildings; Engaging local workforce, materials and services; and Local IT and technology providers implement smart hospital technologies.

Projects such as Medical City for Military and Security Forces in Muscat incorporate ICV concepts by requiring local content participation at multiple developmental stages.

Research and Development (R&D): Research and Development within the healthcare sector is essential for fostering innovation and improving disease management and treatment regimens. ICV in R&D covers: Supporting initiatives related to health research in the country, University and hospital partnerships, Accelerating local biotech firms, and Establishing facilities for clinical trials in Oman.

Some of the efforts are led by SQU’s College of Medicine alongside Oman’s Ministry of Health Research Centre.

Digital Health and ICV Technology Transfer: The use of technology in health care is vital for providing quality services. ICV can be executed in: Upholding local telemedicine and e-health platform development; Engaging with foreign technology companies for knowledge transfer; Educating Omanis on health informatics, and Establishing tech accelerators.

The national digital health strategy does not contradict with the ICV objectives and helps foster local digital creators.

CASE STUDIES AND CURRENT INITIATIVES

Oman Vision 2040 and Health Sector Reform: Placing an emphasis on enhanced healthcare services as a core strategic objective in the Vision 2040 blueprint is key. The main reforms aligned with ICV include: Establishment and expansion of Public Private Partnerships (PPP); Infrastructural development bid for Omani companies; and Employment of Omanis within health institutions.

Medical City for Military and Security Forces: This flag healthcare project incorporates ICV requirements in its tendering and operation models. It supports local construction, services, employment, supply and maintenance of equipment.

Local Pharmaceutical Production: National Pharmaceutical Industries Co (SAOC) will locally manufacture to create domestic supply and international market in demand.

Oman Health Exhibition & Conference: Hosts local healthcare service providers, medical equipment and other manufacturers and startups under one platform, creating an avenue for collaboration and investments. This is conducted once every year.

BENEFITS OF ICV IN THE HEALTH SECTOR

The advantages of ICV’s implementation in the healthcare sector are profound:

Economic Benefits: Prevents capital loss from importing goods; Increases local GDP as a result of increased domestic production; and Fosters the growth of small and medium sized enterprises, as well as investment opportunities.

Social and Employment Impact: Creates additional employment opportunities for Omanis; Encourages the development of competencies and knowledge, and Fosters patriotism and cultural pride.

Health Security and Sustainability: Improves the capacity to manage pandemics and other emergency situations; Guarantees uninterrupted medical supply chain services; and Strengthens the resilience of the health system.

Innovation and Knowledge Economy: Promotes the adoption of advanced technologies; Fosters the development of health-tech and biotech industries; and Supports local clinical research and data analysis.

CHALLENGES AND CONSTRAINTS

Barriers to ICV implementation in the health sector include the following despite its advantages:

Limited Local Capacity: Insufficient indigenous manufacturers; and Limited specialized suppliers and service providers.

Skills and Knowledge Gap: Lack of adequately trained Omani medical and technical personnel; and Requires frequent training and certification.

Regulatory and Bureaucratic Barriers: Slow endorsing and permitting procedures for health enterprises; and Weak motivation for foreign investors to domicile their operations within the country.

Financial Limitations: Finances that must be raised at the outset with the intention of establishing local manufacturing are considerably high; and Reluctance to take risks by investors in the local market especially in the healthcare sector.

HEALTHCARE ICV IMPROVEMENT RECOMMENDATIONS

Policy and Governance: Focus on creating a national Integrated Clinical Vision (ICV) strategy that emphasizes the health sector's specifics; and Include and implement ICV policy targets in the investment and contracting policy documents.

Strengthening Training Capacity: Provide additional training opportunities for clinical and non-clinical personnel working in a health-related field; and Invite scholars from abroad in order to create the desired local expertise.

Promotion of the Local Manufacturers: Promote local manufacturers by offering them financial support and other forms of assistance; and Create and support initiatives for health innovation and incubation centers.

Collaboration of Public and Private Sectors: Stimulate participation of the public sector with private companies and academic institutions; and Stimulate participation of citizens in the provision of infrastructure, technology, and services.

Evaluation and Planning: Define ICV within clear parameters that govern health projects to be achieved within set time frames; and Review measures from time to time to assess whether targets are being met and make improvements where necessary.

FUTURE OUTLOOK

With the appropriate guiding policies and collaborative efforts from investors, Oman has the potential to regionally lead in health sector localization. By extending ICV to healthcare, it will enhance the health sector’s performance as well as diversify and strengthen the national economy.

Oman should continue to focus on developing its human capital and resources to foster innovation while furthering advancements in medical technology, education, and service models.