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Saturday, July 17, 2010

PUBLIC PRIVATE PARTNERSHIP

Introduction :
India is a second largest state where its health is covered by large complex structure of public and private sector. Public sector concentrates mainly on preventive aspect and maternal and child health where as private services covering 80% of the curative services specially concentrated in the urban area. To reach the health for all need to collaborate between public and private.
Public-Private-Partnership (PPP) provides an opportunity for private sector participation in financing, designing, construction and operation & maintenance of Public sector programmes and projects. The time has come to forge a greater interface between the public and the private sector in a wide range of activities in the country.
Public-Private-Partnership or PPP is a mode of implementing government programmes/schemes in partnership with the private sector. The term private in PPP encompasses all non-government agencies such as the corporate sector, voluntary organizations, self-help groups, partnership firms, individuals and community based organizations, PPP, moreover, subsumes all the objectives of the service being provided earlier by the government, and is not intended to compromise on them. Essentially, the shift in emphasis is from delivering services directly, to service management and coordination. The roles and responsibilities of the partners may vary from sector to sector. While in some schemes/projects, the private provider may have significant involvement in regard to all aspects of implementation; in others s/he may have only a minor role.

The key differences between public-private-partnership and ‘privatization’ may be summarized as follows:
Responsibility
Ownership
Nature of Service
Risk & Reward

The potential benefits expected from PPP
Cost-effectiveness
Higher Productivity
Accelerated Delivery
Clear Customer Focus
Enhanced Social Service
Recovery of User Charges

The government may collaborate with the private developer/service provider in any one of the following ways:
(i)As a funding agency
(ii)As a buyer
(iii)As a coordinator

PPP involves a long-term relationship between the public sector and the private sector
1.Conceptual Framework:
2.Selection of Service Provider
i)Competitive Bidding
ii)Swiss Challenge Approach
iii)Competitive Negotiation
3.Payment mechanism
4.Monitoring & Evaluation
5.Risk & Revenue Sharing: The risk involved in project implementation may be of the following types:
(a). Construction/implementation risk, arising from
(b). Market risk, arising from
(c). Finance risk, arising from
(d). Operation and maintenance risk, arising from
(e). Legal risk, arising from


Evaluate the role of volunteer organization in implementation of PPP

The voluntary sector may be broadly classified as
Advantage of implementing programmes through VOs
Disadvantages of implementing programmes through VOs
Voluntary Sector in Health Care
The voluntary health effort as it exists today can be broadly classified as follows:
Towards a More Fruitful Partnership between the Government and Voluntary Sector
Partnership to Meet the Future Challenges

Explains tips for the successful PPP

Successful PPPs and PPC require clear rules and dedicated experts on both sides to allow for smooth planning and transition;
The skills required for the tender and contracting process are high, and it is particularly important to well define each partner’s risks and responsibilities, fix the terms in advance, and define expectations in a service-level agreement;
Sufficient time should be built in for partners to transition into new roles and arrangements created under the PPP/PPC;
Private partners should have a proven-track record and well evidenced expertise in the subject matter, and preferably experience in the country and/or region;
Quality assurance and performance monitoring should be ongoing and feed into improved management;

Conclusion :
India’s maximum (74%) populations are residing in the rural area with minimum professional and health facility (23%). Many of the disease can be prevented and need minor treatment. Many of the health professionals are not ready to work in rural area. If these facilities are available in the urban area but not within reach of poor people. Indian economy is one more factor where we are spending only 4% of the total money towards the health where as WHO specifies 30% of share for health to reach health for all. Collaboration with the private sectors helps the government to reach the facility with minimum expenditure with better quality and coverage.

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