Public Private Partnerships in Healthcare : A Win-Win Strategy for all Stakeholders

For developing countries, PPPs can be utilized as a strategic tool to  strengthen healthcare delivery system  and accelerate achievement of healthcare development  goals. Though some critics consider PPP as another catalyst in increasing privatization, but we don't have paucity of examples to demonstrate the positive impacts of PPPs. Following are some of the points why PPPs are considered as a Win-Win strategy for all the stakeholders.

For the Public: Focused healthcare development initiatives utilizing PPP can result in provision of healthcare services in a better way improving the affordability and accessibility for those sections of society which are in acute need. Outcomes can be expected in a defined span of time.

For the Government: A PPP can enable the government to deliver best value for taxpayer’s money by utilizing the private party’s skills which add to the scope for innovation in the project. In addition to this the private parties bring with them the potential to operate efficiently and effectively. The effects of interventions can be visible in a time bound manner. There is also an added risk control in the project as the private party is an experienced player in handling similar assignments.

For the Private Party: For companies/civil organizations aiming to contribute to the society, this can be one of the channels through which they can help in improving the key development indices which as a result can generate a long drawn impact on future healthcare outcomes of the society. Another incentive for big corporation/companies to enter this kind of engagement is building business at the bottom of the pyramid which can give them competitive edge in terms of knowledge and experience. The base of the pyramid also has some big numbers on it- 4 billion people with per capita income of less than $1500 (Commission on Private Sector and Development, 2004). (India alone has 700 million people in rural markets; whereas China has a billion)

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