Public‐private partnerships in the health industry

Abstract

This article compares the traditional government method of procurement of goods and services with various public‐private partnership methods and provides an overview of the various advantages and disadvantages of both. Governments face many challenges in meeting the basic needs of their people. The private sector is therefore becoming increasingly involved in the provision of a range of services. In South Africa, examples are the Maputo N4 Tollroad, various water and sanitation concessions, and even the building and running of prisons, all of which have received media coverage. Many of these forms of private sector involvement, and lessons learnt from these projects, could be transferred to the health care sector. The health industry is currently faced with the challenge of providing increased levels of service to a growing population. There has been much debate over the state of the nation's hospitals, all of which require some maintenance and at least a third of which need extensive, if not complete, replacement. This also applies to the equipment used in hospitals. Overseas, governments are looking to the private sector to work in partnership with them to address these concerns in terms of knowledge and expertise in delivering, financing and operating these services. By involving the private sector as a partner, governments can focus their energies on ensuring that adequate health policy frameworks are established and that the necessary health services are provided. The article identifies and highlights several ways in which the private sector and government could work together to solve many of the challenges facing the industry.

Notes

Policy analyst, Policy Unit, Development Bank of Southern Africa.