Background and Aim: Health is considered a very fundamental public sector that governments have fundamental doubts about privatization or being under their control even to this day and it is even seen that this disagreement exists in the most advanced countries, including the United States of America. Over the past decades, the capacity and capabilities that the government has had to provide health services have been repeatedly reviewed. However, government facilities in the field of providing health and medical services have been inadequate, while the provision of government services in this field is associated with low quality. Privatization can be considered an attempt to enhance the role of the market in relation to government decisions as an economic agent. In fact, the concept of privatization is broader than simply changing the ownership of production enterprises. The main idea in the privatization thinking is to make the market mechanism dominate economic decisions, which results in creating a competitive environment for private enterprises and in this way, the efficiency of enterprises is improved compared to the public sector. Privatization is an economic policy to balance the government and the market and of course, more in favor of the market. In general, privatization is a set of measures in which various levels of ownership and management control are transferred from the government to the private sector for greater and more efficient investment. This can be done through organizational measures, operational measures and ownership measures. Privatization has the greatest impact when it is part of a broader program of economic reform and private sector development. The benefits of privatization are provided when the government ensures the creation of a competitive environment.
Method: The research method in this article is descriptive-analytical. In this regard, reliable library sources, including primary sources, namely laws and regulations that govern privatization in the pharmaceutical and therapeutic fields, on the one hand and secondary sources, namely doctrines and theories that exist in the field of privatization in the medical and pharmaceutical sectors, are used.
Ethical Considerations: In this regard, the principles of scientific trustworthiness, non-plagiarism and originality of the text have been observed in this research.
Results: According to the provisions of the Law on the Implementation of General Policies, Article 44, it seems that most cases of privatization in the health and treatment sector have been carried out in the areas of support and technical and engineering services and less in the area of hospital management or purchasing extensive health and treatment services from the private sector. Of course, this does not mean that private hospitals have not emerged in the country after the privatization process in the health and treatment sector, but rather it means that the limitation of the Ministry of Health, Medical Treatment and Education's tenure has not been fully implemented.
Conclusion: In fact, many researchers claim that privatization leads to further development of the stock market, but few of them have conducted empirical research on the mechanism of the impact of privatization on the development of the stock market. In this study, first, the legal challenges in the transfer of ownership and privatization and the legal challenges of Article 44, the factors affecting market development, are introduced and then the impact of privatization on the main characteristics of market development and their quantitative criteria, the mediating role of political risk in the relationship between privatization and
Please cite this article as:
Hasannia A, Radpour AR, Eslami V. Legal Challenges of Transfer of Ownership and Management in Privatization of Iran in the Pharmaceutical and Medical Sector. Medical Law Journal. 2025; 19: e18.
Type of Study:
Original Article |
Received: 2024/10/21 | Accepted: 2025/03/3