PUBLIC PRIVATE PARTNERSHIP

Public Private Partnership in Healthcare





Introduction3

Public-Private Partnerships in Healthcare4

Need for Public Private Partnership4

Benefits and Rational of Public Private Partnership5

Increasing the Accessibility To The Rural Areas6

Improvement in the Quality and Quantity of the Resources6

Improvement in the Quality Of Life and Primary Care Services6

Private Finance Initiative7

Viability of the Private Finance Initiative7

Criticism on the Private Finance Initiative8

Public-Private Partnerships as A Procurement Route9

Affordability10

Risk Mitigation and Allocation10

Bankability of the Project10

Alternative Basic Procurement Routes/Types for the Proposed Project10

Capital Budgeting and Planning Process11

Mode of Infrastructure11

Greater Value Extraction12

Seeking the Return Inflows12

Public Private Partnership in Healthcare

Introduction

A public private partnership has many implications and one thing that has been discussed and implemented a lot these days. It is a government service. It can also be a part of a private business venture that is funded as well as it is operated through the partnership of the government. It can also be implemented by private sector companies. The schemes are sometimes referred as PPP. Looking at the technicalities of the PPP, it is a contract that exists between the public sector authority and it involves laying out a partnership with the private party. The private party in that case provides a service and it assumes the majority part of the financial or technical side of the operation or the project that is about to be carried out. The cost of using the services is shared between the eventual users of the service.

It has to be kept in mind that they taxpayers are not the ones who must pay for the cost of the service. There are some other types of it as well, for instance there are private finance initiatives. In such arrangements, the initial capital investment is paid by the private sector. The basis of these payments is that government will provide the speculated and agreed services.

The main rational and purpose of creating a private or public partnership is that they want to provide a government service or a product that is needed by the people. It might be investing or contributing in an infrastructural project. In the case of the above project, the government needs to provide healthcare services and it is felt that there is need for a mutually beneficial Public Private Partnership in the said project. The paper will discuss the viability of such partnership and at the same time, it will discuss some of the possible formats of the project. The paper will also discuss some of the possible procurements route for the project.

Public-Private Partnerships in Healthcare

When one looks at the nature of the public and private partnerships, it can be seen that it presents the opportunity for the healthcare providers to ensure that they are able to meet the dual challenges when the economy of the country is not doing well. When there is recession, the pool of funds that are available to the government are not enough and due to the economic downturn, there is increasing demand for the healthcare in those ...