PPPs have become established vehicles for using private capital to build healthcare infrastructure. However, many of these arrangements have proven to be inflexible and unsustainable. A new chassis for PPPs is emerging that goes beyond the financing of the deal and into anticipating and operating more efficient care delivery. While private capital brings discipline and savings to healthcare infrastructure, future PPPs will focus on savings achieved long after the deal has closed.
The potential market for PPPs is significant. Over the next ten years, $70 trillion dollars will be spent globally on healthcare delivery and infrastructure, much of it funded by taxpayers. Only 5 percent of that will be spent on infrastructure. The bigger amount and greater market potential is in the delivery of healthcare services, which make up the other 95 percent, or about $68.1 trillion.