Morocco’s Private Healthcare Sector Faces Billion-Dirham Loss Amid COVID-19 Crisis

Following the two months of confinement, the players in the health sector have experienced a drastic drop in their income. Private clinics are the first affected with a drop of 60 to 85%. For general practitioners, the drop in activity is 60 to 80%. This is also the case for pharmacies, with declines ranging from 48 to 62%.

According to information from L’Économiste, the losses have reached one billion dirhams, after reimbursements to the Public Treasury. The high interest rates do not favor the financial support measures launched by the government to relieve the sector.

Faced with difficulties, the players in the sector benefit from deferrals for corporate tax and personal income tax, but not for VAT, professional tax and local taxes. The same source estimates at 11 billion dirhams per year, the turnover generated by the sector, i.e. 25% loss in April.

For the sector to regain its pre-pandemic health, the ecosystem operators will need government support.