Innovation rollout: Valencia’s experience with public-private integrated partnerships

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The third report in a series of publications jointly authored by the UCSF Global Health Group and PwC.

About the report

Public-private partnerships (PPPs) have tackled a range of healthcare system needs—from construction of facilities, to provision of medical equipment or supplies, to delivery of healthcare services. “Innovation roll out” explores the experience of the Valencia Community of Spain, as it developed and expanded the PPP model to address the health needs of its population.

Examining best practices

The rich history of the original Alzira hospital opening has been well documented over the last 15 years. The purpose of this report is to explore the Valencia community’s subsequent experience in replicating, expanding and adjusting the original model across five health departments.

Success factors for public-private integrated partnerships

Since 1997, the Valencia Community has radically transformed the way in which public healthcare is provided. The public-private integrated partnership (PPIP) model has allowed it to achieve a significant return on its health investment for nearly 20% of its population, while increasing access to high quality medical care, expanding and upgrading health infrastructure, and encouraging innovative practices for improving healthcare management.

To be successful, PPIPs must be designed around the unique needs of the populations to be served, as well as the strengths and capabilities of the public and private sector players. This success can be furthered through active private sector involvement and strong public sector leadership, coming together to work toward a clear and common set of social and health objectives.

This study of the five Valencia Community PPIPs highlights four main factors for public-private collaboration:

  1. Economic stability helps to whet private sector appetite for investment and sustain major government initiatives.
  2. Standardized and scalable business models allow greater operational and financial benefits for the government.
  3. A capitated funding model, along with the “money follows the patient” principle, allows for predictable health spending for governments, and provides leeway for private partners to increase system quality, efficiency and profitability.
  4. Trusted relationships between public and private partners, with appropriate allocation of risk and reward, are critical to long-term project success.

Although cost effectiveness research is ongoing, the Valencia PPIP model has achieved positive economic results, while providing high quality healthcare services. It has also demonstrated how the private sector can be leveraged to strengthen public service delivery.

This is the third in a series of publications on PPPs jointly authored by the UCSF Global Health Group and PwC. This series aims to document and raise awareness of innovative PPP models in health globally, and to disseminate lessons learned to inform current and future healthcare partnerships.

The original La Ribera PPIP: design and configuration following the 2002-03 re-tender process

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