When the Cabinet Resolution number 265, dated Shawwal 30, 1422 AH, was issued to transform King Faisal Specialist Hospital and Research Center (KFSH&RC) into a public institution, the decision lead to the establishment of a limited liability company that is wholly owned by the General Organization of KFSH&RC. Additionally, and based on the organization’s internal regulations, specifically in its third article, paragraph (b) of VI, the resolution detailed the permittance of the generating revenue streams, either through the institution’s primary activities of competence and/or alternative activities that are decided by the Board of Directors.
The Arabian Diagnostics Company Limited was established by the approval of the Board of Directors Resolution Number 40/m/7/1427, on the 5/1/1427 AH or 28/5/2006 AD.
The expansion and diversity of the company’s commercial activities, and its entry into multiple partnerships with the private sector, necessitated a review in its legal structure, as per the requirements of the ministry of commerce. This led to the company’s transformation from a limited liability company to a limited liability holding company. This enabled the company to market multiple services through its subsidiaries in support of the transformation of the KFSH&RC. This newly established entity was named King Faisal Specialist Hospital International Holding Company or KFSHI.
The Health Sector Transformation Program contained several initiatives, of which two are directly related to KFSH&RC. The first outlines the institutions transformation into a private company wholly owned by the General Organization of KFSH&RC. This initiative enables the institution to achieve both legal and operational transformation, along with partnerships with the private sector. The latter initiative enables the transformation of the KFSH&RC by allowing partnerships with the private sector, and essential business activities such as marketing, public-private partnerships, and others to support sustainable income.
One of the Foundation’s strategic objectives, approved by the Board of Directors, is to support its transformation into an independent, effective and financially sustainable non-profit organization.
In order to achieve the strategic objective mentioned above, KFSH&RC Board of Directors is working on studying the transformation of sections within the hospital, such as laboratory and radiological services, facilities management, information technology services, and employment for specialized sectors to name a few examples. The services should not be limited to independent companies that provide their services to the public and private sectors, but also must maintain the needed internal services to the General Organization of KFSH&RC, whilst raising the operational efficiency and quality of services provided in the health care sector in the Kingdom and contributing to achieving the financial sustainability of the institution in the medium and long term.
The Foundation’s Board of Directors also aims in the long term to offer these subsidiaries the resources to go public into the capital market when they meet the technical, financial and regulatory conditions required by the Capital Market Authority in the long run.