Financing & Strategic Procurement–PPPs

Government spending on healthcare around the world is growing at a pace that is likely to be unsustainable unless new funding sources are found and more efficient delivery methods are sought. As this reality dawns governments are increasingly looking to PPPs to solve the larger problems in care delivery that are driving spending.

Today, we are witnessing a trend and expansion in the scope of health PPPs from a primarily infrastructureoriented model to a clinical services delivery model. The momentum in the expansion of health PPPs is mostly driven by investment need and budget constraints.

We believe the GCC healthcare sector is an attractive proposition for partnership between the public and private sector as well as further direct involvement of the private sector.

There are a number of consistent success factors across private sector programmes and involvement which include: Role of the Government, Transparency and objectivity, Investment in skills and resources, Be flexible

There is no health system where healthcare is financed entirely by the Government. While the provision of health is widely recognised as the responsibility of the government, private capital and expertise are increasingly viewed as sources to induce efficiency and innovation. Hospitals, and healthcare more broadly, are unrecognisable today compared to 30 years ago and health PPPs and private sector engagement must continue to adapt to keep up with the accelerating pace of change.

PPPs and private sector involvement provide a way to harness the skills, knowledge, and capacities of the private sector to achieve public goals. This in turn paves the way for a shift in the Government’s role from provider to regulator.

Potential for savings & efficiency gains