Universal health insurance phase 2 and private operation of public hospitals in Egypt: what private clinics should watch

Two changes in Egypt's health sector will shape the market around private clinics over the coming years: phase 2 of the universal health insurance system, and the opening of public hospitals to private operators.

Phase 2 of universal health insurance

According to Ahram Online:

• Phase 2 covers Minya, Matrouh, Damietta, Kafr El-Sheikh and North Sinai.
• In Minya, the trial run starts with 10 hospitals, building toward 26 hospitals and 290 primary-care facilities.
• The phase has a budget of EGP 48 billion and covers around 6.5 million people.

In May 2026, Prime Minister Mostafa Madbouly reviewed amendments to the universal health insurance law ahead of the phase 2 expansion, according to Arab Finance. Follow the final text of any amendments as they are issued, since the details will decide how private providers fit into the system.

Private operation of public hospitals

Law 87/2024 allows private operators to run state hospitals for periods of 3 to 15 years. On 23 February 2026, Enterprise reported that the pipeline of hospital investment projects offered to the private sector had grown to 62.

What this may mean for private clinics

The points below are our reading, based on these reports:

1. In phase 2 governorates, patients will compare. Once insured residents can reach covered services, a private clinic in Minya or Damietta will be weighed against a covered option on price and waiting time. Clinics there need a clear answer to the question "why pay privately?": a specific doctor, a shorter wait, convenient hours, or a service outside the covered package.
2. Contracting may become an option. Watch whether and how private providers in your governorate can join the system as contracted providers, and what requirements apply.
3. Privately run public hospitals add new players. A public hospital run by a private operator may invest in service quality and in reaching patients in your area. It may also look for referral partners among local clinics and labs.
4. Patient expectations rise across the market. As public facilities are renovated or run to new standards, the gap in comfort and service that some private clinics relied on may narrow.

Practical steps

• If you work in one of the five phase 2 governorates, list your ten main services. For each one, note whether a patient could get it through the system, and what your realistic advantage is.
• Publish clear prices or price ranges for self-paying patients where this is permitted, and state what each price includes.
• Keep patient records organised and digital. Any future contracting is likely to require data on volumes and outcomes.
• Follow announcements about hospital projects in your city, and consider whether a referral relationship with a new operator makes sense for your specialty.
• Review your messages to patients. Explain your service in calm, factual terms, without criticising public services.

How to measure the effect

Track three numbers each month for each service:

1. New patients.
2. Share of self-paying patients.
3. The main reason patients give for choosing you, from one question asked at booking.

If you work in a phase 2 governorate, mark on your chart the month the system started in your area. This lets you compare before and after with your own figures, and decide where to adjust prices, hours or messages.

In practice

Both changes are rolling out gradually, governorate by governorate and project by project. Clinics that track their numbers and keep a clear answer to "why choose us" can adjust in good time. If a second view would help, Naqar can review your positioning and pages with you.

Sources

• Ahram Online: universal health insurance phase 2 (news report, no link)
• Arab Finance: Madbouly reviews amendments to universal health insurance law ahead of second phase expansion (news report, no link)
• Enterprise: Egypt moves to offer up 62 hospital investment projects to private sector (news report, no link)