Egypt is the largest andmost populous country in the Middle East andNorth Africa. In the
1970s and 1980s, it enjoyed rapid economic growth, benefiting from the effects of the oil
boom in the region and rising revenues from the Suez Canal operations. However, in the
late 1980s, economic imbalances and reduced growth in neighbouring oil economies led
to a substantial deterioration in economic performance. In the early 1990s, Egypt started a
gradual program of economic adjustment and privatization (HassabElnaby et al., 2003;
Rannan-Eliya et al., 1997). In 1994, the Egyptian government passed Decree 304 initiating
its health care reform. The reformrequired changing themanner inwhich public hospitals
operate in Egypt by challenging and encouraging public hospital staff to accept private
sector practices. It aims to shift public hospitals’ image from being merely health care
institutions to multi-products organizations. Despite the health care reform, the Egyptian
government and citizens recognize that the performance of public health sector is still less
than adequate (Hassan, 2005; Mostafa, 2005; Zineldin, 2006).