New Law on the Organization of Work

On 2 April 2018, the Official Gazette published Law No. 19 of 2018 regarding the Organization of Work in University Hospitals (the “Law”).[1] The Executive Regulations of the Law are to be issued by the Minister of Higher Education and shall determine the conditions and requirements for the establishment of new university hospitals. Until the Executive Regulations have been issued, previous regulations and decrees remain in force.

Background

Since 1965, work in university hospitals has been regulated by Presidential Decree No. 3300 of 1965 (the “Decree”)[2] which stipulates that university hospitals are to be considered independent entities in terms of finance, administration, and technicalities. The Decree states that university hospitals’ primary responsibilities include their contribution to the provision of healthcare services in Egypt, provision of the resources needed for the advancement of medical research and taking into account general policies intended to regulate education and research. It also stipulates that these hospitals have a board of directors, the head of which must be the Dean of the Faculty of Medicine, including a list of other requirements for membership. It also states that the board of a university hospital is responsible for placing an internal structure of organization, and monitoring reports concerning the standards applied by university hospital.

The Law

The new Law defines ‘University Hospitals’ as those establishments which provide medical services (including educational, research, training, or treatment services), and also abide by the regulatory framework set forth by Law No. 49 of 1972 on the organization of universities. University Hospitals, according to the Law, are responsible for providing opportunities for advancements in the medical field, sufficient resources required for the advancement of medical research, and financial, technical, as well as educational resources for their employees. They are also expected to contribute to the provision of healthcare services through their cooperation with the Ministry of Health.

• The High Committee for University Hospitals

The previously enforced Decree stipulated that a General Manager for Hospitals be appointed from among physicians in training commissions at medicine faculties or others, through a presidential decree, after consulting the Minister of Higher Education. The Manager is to be responsible for the administration of the hospital and the implementation of any decisions taken by its board of directors. The new Law repeals and replaces the previously applicable Decree, introducing newly established entities and organizational structures. In line with the Law’s stated aim to organize the productivity and efficiency of university hospitals, Article (3) stipulates that a new High Committee for University Hospitals (the “Committee”) is to be established. The Committee is to be headed by the Minister of Higher Education (or a relevant minister), and to include in its administration seven members from the deanships of faculties in the medical sector. The Committee will be responsible for the following:

1. Promoting cooperation between university hospitals
2. Implementing general systems for the development and improvement of the performance of university hospitals
3. Coordinating research policies that are consistent with scientific research strategies in other university hospitals
4. Expressing its opinion in matters which the relevant minister determines the Committee must assess

• The Coordination Council for Health Issues

Furthermore, the Law provides for the establishment of a Coordination Council for Health Issues in every university, to be headed by the Dean of the Faculty of Medicine and include the membership of deans from other health-related faculties. The Council is to ensure that the general policies of university hospitals are implemented within the university.

• Funding

The Law outlines the various sources of funding for university hospitals, listing them as such: government funding dedicated to university hospitals, profits from the provision of healthcare services, donations giveaways to a university’s board of directors, grants to the university, and any returns on investments. The Law stipulates that overall, a university hospital’s funding shall go towards improving the quality of its services according to the plans set out by its board of directors.

Conclusion

This Law appears to be part of a larger attempt by the government to target the quality of services in the healthcare sector and to redirect resources more efficiently towards improvement through more refined organizational structures. This has become significantly relevant following the issuance of the new Universal Healthcare Insurance Law in January 2018.[3] It also follows developments in legislation regarding medical and scientific research, such as Presidential Decree No. 605 of 2017[4] which established a medical centre for research on stem cells and medical regeneration. You can read more about the Universal Healthcare Law and the aforementioned Centre in our ELU issues of January Week 4 2018, and February Week 1 2018, respectively.   [1] Law No. 19/2018 on the Organization of Work in University Hospitals, Official Gazette, Issue No. 13 (bis) (c), 2 April 2018. [2] Presidential Decree No. 3300/1965 regulating the work in university hospitals, Official Gazette, Issue No. 229, 10 October 1965. [3] Law No. 2/2018 on the Universal Healthcare Insurance, Official Gazette, Issue No. 2 (cont.) (b), 11 January 2018. [4] Presidential Decree No. 605/2017 establishing the Medical Centre for Research on Medical Regeneration, Official Gazette, Issue No. 48 (bis) (a), 6 December 2017.