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Public Private Partnerships

The PPP Knowledge Lab defines a Public Private Partnership (PPP) as "a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance"

PPP involves collaboration between public sector and private organization which usually involves an agreement to work together in terms of either ensuring financing, project management or building and operating projects.

Financing projects though a PPP can allow for leveraging the strengths of both partners and faster completion of projects.

Since decades, the public sector has been engaging the private sector to deliver services through one PPP model or another. The major functional areas covered by the PPPs include:
•    Financing or co-financing of projects
•    Designing projects which also include project, infrastructure and care delivery model
•    Building and construction or renovation of facilities included in the project
•    Facility maintenance services with or without equipment maintenance
•    Operations of the hospital including equipment, IT, HR and non-clinical management.
•    Delivery of services and complete running of hospital including support services.

The PPP models are mainly categorised into:
•    Infrastructure–based model: Here the private partner is selected to develop the infrastructure for the public service delivery while the public sector either directly funds the project or is permitted to charge user fees from end users. Herein the private partner either develops new infrastructure or refurbishes existing infrastructure.
•    Discrete Clinical Services model: Herein the private sector is called in to to provide a expand the existing delivery services and get in provate sector expertise.
•    Integrated PPP model – Here the private sector is involved to provide a comprehensive package of both infrastructure and operations package delivery

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