PUBLIC-PRIVATE PARTNERSHIP IN HEALTH CARE : CONTEXT
Transcript of PUBLIC-PRIVATE PARTNERSHIP IN HEALTH CARE : CONTEXT
PUBLIC-PRIVATE PARTNERSHIP IN HEALTH CARE :
CONTEXT, MODELS, AND LESSONS
A.Venkat Raman
Faculty of Management Studies
University of Delhi, India
VIRTUAL BREAKDOWN OF PUBLIC HEALTH SYSTEM:
Known Causes
UNFETTERED RAPID EXPANSION AND DOMINANCE OF PRIVATE
HEALTH SECTOR
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POOR FORCED TO SEEK SERVICES FROM EXPENSIVE / UNREGULATED
PRIVATE SECTOR
80% of expenses from Out-of-Pocket
Debilitating Effects on the Poor
Concern towards unbridled commercial behavior of the private sector
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RATIONALE TO COLLABORATE
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Given respective strengths and weaknesses, neither the public sector nor private sector alone is in the best interest of the health system
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HYPOTHESISED BENEFITS (of working with Private Sector)
Improve Access & Reach
Improve Equity (Reduce out of pocket expenses)
Better Efficiency
Opportunity to Regulate & Accountability
Improve Quality/ Rational Practice
Imbibe Best practices
Augment Resources- Funds, Technology, HR
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ESSENCE OF PUBLIC PRIVATE PARTNERSHIP: Financing vs Delivery: Public vs Private
Public Delivery Private Delivery
Public Financing
Public Hospitals
CONTRACTING
Demand/ Supply Side Fin.
Private Financing
International Disease (TB/HIV) Control Initiatives
Private Hospitals
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NOT ALL INTERACTIONS ARE PPP…… PPP ENCOMPASSES
…..a collaborative relationship between the partners with…
Clear terms and conditions
Clear partner obligations
Clear Performance indicators
Stipulated time period
Overall Health Objectives
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CORE PRINCIPLES OF PARTNERSHIP (Venkat Raman & Bjorkman, 2009)
Partnerships entail
◦ Relative Equality between partners
◦ Mutual Commitment to Health objectives
◦ Autonomy for each partner
◦ Shared decision-making and accountability
◦ Equitable Returns / Outcomes
◦ Benefits to the Stakeholders
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PPP MODELS:
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COMMON MODELS
Contracting (‘in’ and ‘out’)
Build/ Rehabilitate, Operate, Transfer
Demand/ Supply Side Financing
Joint Ventures
Mobile Health Units
Telemedicine
Franchising
Social Marketing
Public-Private Mix
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SELECT PPP MODELS IN ACTION
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Free services- diagnosis, consultation, treatment and drugs.
CONTRACTING MANAGEMENT OF PRIMARY HEALTH CENTRES
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Except select surgeries all services are free for poor patients
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CONTRACTING MANAGEMENT OF COMMUNITY HEALTH CENTRE
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40% beds for Poor patients; Free OPD services to poor.
CONTRATING MANAGEMENT OF SUPER SPECIALTY HOSPITAL
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Free for all poor Patients; Subsidized rate for others
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CONTRACTING MANAGEMENT OF CT SCAN/ MRI DIAGNOSTICS
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Institutional deliveries through private obstetricians; Primarily for women from poor families
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DEMAND SIDE FINANCING FOR INSTITUTIONAL DELIVERY & INFANT CARE
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Institutional Deliveries. Primarily for poor women
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DEMAND SIDE FINANCING FOR INSTITUTIONAL DELIVERY
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Hospitalization for more than 1600 surgeries. Members of farmers’ co-operatives and their dependents
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COMMUNITY BASED HEALTH INSURANCE
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Clinical & Radio diagnostics through health camps, lab tests. Free to all Below Poverty line (BPL) cardholders.
MOBILE HEALTH CLINIC
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Tele-diagnosis and consultation in cardiac care and specialist care. Free diagnosis, medicines and treatment for BPL patients
TELEMEDICINE AND TELEHEALTH
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KEY LESSONS
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KEY STAKEHOLDERS
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Poor Patients
Political
Bureaucracy
Public Health System
Private Sector
Civil Society
Regulator/ Legal
DEVT.
PARTNERS
PUBLIC HEALTH SYSTEM
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• Lack of Policy Driven Strategy- thus lack continuity
• No Organisation/ Institutional structures to manage PPP or Private Sector
• Lack of Institutional Capacity to design, contract, monitor PPPs
• Primarily concerned with Input-Based contracting
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PRIVATE SECTOR
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• Diversity of Private Sector: Predominantly Individual / small units- not easy to contract. Big units interested, but on their own terms.
• Lack of Accreditation, Quality Standards
• Payment Delays – Thus financial risk
• No Grievance Redressal- Non- Revision of contracts
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BUREAUCRACY
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• Top Bureaucracy: Enthusiastic, but Success Takes them Away- Next incumbent not necessarily willing to continue
• Lower Bureaucracy: Do not
comprehend or suspect privatisation; Fear Job Loss; Distrust Private Sector
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POLITICAL CLASS/ CIVIL SOCIETY
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• Ambivalent stance by Political Class
• Squeamish about Profit making
• Popular / Cultural Antipathy towards Private sector
• Govt. inability to regulate, thus suspect Govt. ability to manage PPP.
• Question Long Term Effects -Sustainability
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LEGAL / REGULATORY FRAMEWORK
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• Lack of Information on the Private Sector
• Lack of effective implementation of legal framework towards private sector
• Lack of penal authority • Interference from political / powerful lobby
groups
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DEVELOPMENT PARTNERS
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• Effective Pilots – Leave Foot Prints- But not on long term
• Focused on project management targets/ deadlines; Value for Money
• Need to focus on developing institutional capacity– beyond hand holding
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ENABLERS
Most PPPs have been “Initiatives in Good Faith” based on Trust, Relationship and Leadership vision
Prior Consultation
Pilot Testing
Timely Payment
Acceptable Supervision & Monitoring
Well defined health objectives/ Goals
Periodic review of contract clauses
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CONSTRAINTS
Lack of clarity on why PPP
Defining Beneficiaries in High value services
Local political interference
Non-revision Contract
Payment Delay
Institutional capacity for monitoring
Attitude / Personality Styles
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IDEAL STRATEGY FOR STRONG PPP
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Regulation (Physical Standards, Accreditation; Legal
Framework)
Institutional System
(PPP Unit; PPP Policy; Intl. Capacity
PPP ( Infrastructure; Service Delivery)
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SUMMARY
Inevitability of working with the Private Sector
PPP is not privatization
Government continues to plays critical but need capacity to play the new role
Need to continue public sector reform- strengthen ability to deliver services
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THANK YOU
Ref. Book:
A.Venkat Raman & J.W.Bjorkman
Public Private Partnership in Health Care in India: Lessons for Developing Countries. Routledge, London, 2009
http://south.du.ac.in/fms/idpad/idpad.html
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