Innovating health systems through public private partnerships
29 September, 2010
Donors and the public health sector were challenged to be more innovative in collaborating with the private sector to improve healthcare delivery in low and middle income countries.
Public Private Investment Partnerships: Innovations for Quality and Efficiency in Health Systems
Monday 20 – Wednesday 22 September 2010 (WP1045)
The healthcare industry currently accounts for 10% of global GDP (source) ranking it above spending military and defence procurement. Across the globe, there is heated debate on the appropriate role for the state and the private sector in healthcare. Is the blueprint of a state owned and controlled system funded through central government tax revenues, supported by donor agencies, for many low and middle income countries sustainable? Alongside state run services is growing private sector provision, usually focused on provision for the urban elites, and donor sponsored healthcare activity often offering healthcare facilities focused on the diagnosis and treatment of a single health issue such as HIV/Aids.
Participants at this meeting included public and private sector experts involved in healthcare, finance, legal issues to explore how Public Private Partnerships might work in helping to achieve public policy objectives in health.
Discussion focussed on when a PPIP is an appropriate solution in the healthcare environment; what is required to effectively finance PPIP deals in healthcare; what it takes to get the deal right: from contract development to implementation; and the Evaluation of PPIP’s and what success might look like.
Specific case studies were explored where public private investment partnerships are in practice including Valencia (Spain), Turks and Caicos Islands and Lesotho to deliver public healthcare from the primary through to tertiary sector through long-term partnerships between government and the private sector. Project identification and development is critical, as is strengthening contract capacity management once initial deals are signed.
In setting up such partnerships outcomes for patients are critical: access for all; quality of healthcare and affordability. Such projects need to be sustainable and commercially viable. The cost of capital remains prohibitively high in many developing countries restricting local enterprise in the private sector in any aspect of healthcare from supplies and logistics to broader healthcare delivery.