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PPP: Key Guiding Principles
Definition Sustained collaboration among public,
An agreement between the government civil society, Cooperatives, community or
private organizations in order to maximize
(public sector) and non‐government access, quality, equity and effectiveness.
(private sector, for‐profit and non‐
profit) for the purpose of delivering Contributing to the design, financing
health services cost effectively and and project implementation according
equitably. to each partner’s abilities, capacities and
needs.
PPP: Key Guiding Principles Who are the partners in health sector?
Non‐state/Private Partners State/Public Partners
Each partner taking on and managing y Individual practitioners y MoHP and its agencies
risks related to the benefits to be achieved y Associations of practitioners y Other ministries
from the mutual objectives. y I/NGOs y Social insurance
“To develop and coordinate government/ y Cooperatives institutions
non‐government partnerships in such a y Community organizations y Local government units
way as to strengthen the capacity of the y Civil society networks y National Research
public sector in the long run” y Private companies/association
Institutes/NHRC
‐‐ Nepal Health Development Partnership (IHP like FNCCI y Public health education
Compact) Draft y Private hospitals
facilities
y Private research institutions
5 6
y National Health Policy, 1991
y Second Long Term Health Plan
PPP Related Policies & (1997‐2017)
y Health Sector Strategy, 2003
Strategies in the Health y Nepal Health Sector Program‐
Implementation Plan (2004‐2009)
Sector of Nepal (extended up to 2010)
y Ten Point Policy Guideline, 2006
y Three Year Interim Plan (to 2010)
y National Health Development
Partnership
New government’s policy, plan and programmes (2008/2009)
Ministry of Health: PPP should strengthen the public sector
not weaken or displace it. PPP should facilitate the Institutional
implementation of national health policies.
Finance Ministry Arrangements for PPP
y “Public‐Private Partnership will be the basis of our
economic policy……”
Budget Speech, 2008/2009
y “The roles of the public, private and cooperative sectors in
the economy will be redefined keeping the interests of the
country and the people in mind, as the single‐handed efforts
of the public sector will not be adequate to accelerate the
pace of economic growth…..(19).
1. Policy Planning and International Cooperation
Division, MoHP is responsible for promoting public‐ PPP Policy Forum: Overall objectives
private partnerships.
2. Public Health Administration, Monitoring and To support MoHP by providing stakeholders’
Evaluation Division, MoHP is responsible for perspectives and policy inputs for the promotion
monitoring of Private Sector Health institutions based on of PPP in the health sector ensuring that the
the guidelines, 2061 health service users get increased access to cost
3. PPP Policy Forum for ongoing dialogue among effective high quality services that meet their
partners established in 2007 and made functional. health needs.
(Contd….)
(Contd….)
PPP Policy Forum
Specific Functions
y To provide Forum for policy dialogue and to establish clear
line of communication for PPP in the health sector,
y To exchange ideas and experiences (both national and
international) that help MoHP in formulating and
implementing PPP policy and strategy,
y To work as an advocate for PPP in the health sector,
y To provide support in strengthening the MoHP/DoHS’s
capacity in adopting stewardship role.
PPP in the Health Sector at a Glance: Public vs. Private: Current Status
y Government efforts concentrated on Public health
y Initiated in the1950s through (I/NGO co‐ and essential health care services (EHCS) & some
operation) (Mission hospitals) secondary care and tertiary care. Small contribution in
Human Resources for Health (production)
y Some government resources currently go to NGOs
y Private Sector (NGOs/not for profit) mainly
acting as partners, to run health services secondary and tertiary care in such areas as maternal
y PPP arrangements presently exist in service health, child health, eye care, cancer, TB control, leprosy,
delivery, infrastructure development and human safe abortion, outreach services and rehabilitation services
resource development for health
Public vs. Private: Current Status
y Private sector (for profit) ‐ secondary and tertiary care
• Health service delivery: Partnership with Mission
(highly urban centered), drug production and HR Hospitals, Medical colleges and NGOs ‐
production (rapidly increasing) programme level (IMCI, safe motherhood, etc.)
y Community organizations / civil society ‐ health facility • Family planning services: Partnership with
management, social mobilization, community NGOs and for‐profit sector (VSC and others)
financing
• Eye treatment: Partnership with NGO ‐ one of the
y Local governments –Local Self Governance Act (LSGA), best in the region
1999 clarifies roles and responsibilities. Local governments
• HIV/AIDS: Partnership with NGOs and civil
have contributed significantly, but better integration into
society organizations
planning and programmes is needed.
• TB treatment: Partnership with NGOs,
y Cooperatives – new group for health, expanding rapidly in
communities and civil society organizations, which
urban centers. Great potential, including cross‐sectoral (e.g.
is considered one of the best in the region.
health/agricultural cooperatives).
What Should Health Sector PPP Achieve?
y To strengthen public sector and implementation
Why Public‐Private‐ of national health policies.
y To enhance equity, efficiency & effectiveness (a
Partnerships in the Health major focus of reform)
y To reduce both duplication and gaps in health
Sector? services
y To promote innovation, and equitable access to
the fruits of innovation
y To enhance the role of private sector (or non
state agencies) in delivering health services to
achieve Millennium Development and Health
Sector goals by joint efforts (Contd….)
1. Service Contracts
y Blood transfusion services with Nepal Red Cross
Society
Different PPP Models Used y Family Planning Services with Family Planning
Association of Nepal
in the Health Sector of y Safe abortion services with Mary Stopes clinics
2. Management Contract
y Lamjung District Hospital and Dadeldhura
Hospital with NGO (Human Development &
Community Services)
y Jiri Hospital with local community
3. Build, Own, Operate & Transfer (BOOT)
y Maternity Hospital Thapathali‐ by Paropakar, a national
Lamjung Community Hospital
(District)
Team Hospital, Dadeldhura NGO
MoHP‐NGO y Phaplu Hospital, Phaplu‐ Himalayan Trust
Partnership y Am Pipal Hospital, Gorkha, UMN/local community
y Manipal Medical College, Pokhra‐ 50 years contract
y Bharatpur Medical College, Chitwan‐ 50 years contract
y Build and Transfer: Lahan Hospital, Several eye hospitals
Chaurajahari Hospital Tansen Mission Hospital
Rukum (under discussion) (under discussion) y Build, Operate and Transfer: Trisuli Hospital, Nuwakot
y Build, Transfer and Operate: Western Regional
Hospital, Pokhra with INF
Okhaldhunga Community Hospital (under discussion)
4. Joint Venture
y Nepal Eye Hospital
5. Leasing Recent PPP initiatives and
y Pharmacy services in several hospitals
practices
6. Contracting + Pay for Performance (P4P)
– Prevention and surgery of uterine prolapsed cases
(currently being designed)
7. Contracting via Social Franchising
– Potential model for drug supply management
Recent Initiatives Strengthening knowledge on PPP
y MoHP appreciates the role of private sector • In addition to the regular discussion in
particularly of not‐for‐profit in IMCI (integrated the PPP Policy Forum’s meetings, a
management of childhood illness), safe motherhood national workshop was organized on
March 2008.
and family planning and these services are available in
• Key PPP concepts and models
all registered private facilities potentially applicable to the Nepali
y The safe delivery incentive scheme, a demand side health system were shared and
financing scheme has been expanded to the private discussed in detail.
sector (not‐for‐profits) to achieve the MDG 5. • National and global experiences and
learning were shared.
y Safe abortion (policy and skill development support • The report and the proceedings can be
by the government) – 88 % conducted in private downloaded from the Health Sector
facilities (2006/2007). Reform Support Programme’s website:
www.hsrsp.org
FY 2008/2009
y Continuation of strengthening of successful PPP
arrangements (standardization of MoU, re‐defining
PPP Related Plans and and/or clarifying role of partners, strengthening oversight
mechanism and performance monitoring)
Programmes y Complete, publish and share Private Health Sector
Assessment reports (5 studies)
(FY 2008/2009) a) Survey of Pharmaceutical Companies
b) Survey of Private Health Care Providers
c) Labour Market Assessment
d) Survey of Household Health Care Utilization
e) Stewardship Study
(Cont…..)
FY 2008/2009 PPP for FY 2008/2009
y Design pilot interventions to test various models of
PPP in the health sector y Document key PPP practices and lessons learned
in the health sector of Nepal and share with the
a) Design and implement Pay for Performance
model (p4p) for prevention and surgery of uterine partners
prolapsed cases (concept note and broad strategy y Prepare draft PPP Policy and Strategy based on
prepared, implementation guideline is under preparation) experiences and learning (to be completed in
b) Identify district level hospitals for potential 2009/2010)
partnership arrangements, assess experiences, design
and operate under partnership models (2‐3)
c) Design and implement partnership with
community initiated hospitals (partnership with
communities and cooperatives)
(Cont…..)
In Summary
y MoHP has successfully piloted almost all types of PPP
models, in absence of PPP policy and strategy. All the
PPP: Experiences partnership arrangement agreed upon were on ad hoc
basis.
and Lessons y Till date the partnership in health sector seems to be
quite significant, but not documented well and shared
with stakeholders.
y The word PPP was misleading to some taking it as
divestment by the state or privatization of health
services.
y Private sector (for‐profit) has been growing rapidly,
but only in urban centers. However, there is no solid
PPP arrangements yet.
Experiences and Learning
Conclusion
y Changing the role and mind‐set of both parties y PPP is a policy priority, the conceptualization of which
(public/private) is a long‐term and difficult task needs further clarification and refinement
y Regular dialogue between all parties is essential to create a y Need to prepare and implement a clear PPP policy
conducive environment for PPP and conceptual clarity about and strategy based on the following key aspects:
PPP. ( PPP Policy Forum is the mechanism for this)
a) Sustainable partnership development
y Tailored approach is needed: Different types of partners
(e.g. for‐profit/not‐for‐profit; national/community‐level) can b) Shared responsibility
make different contributions to meeting national health goals c) Shared risk, resources and benefits
y Managing system‐wide implications of PPP arrangements d) Balancing the fundamental responsibilities and
y Limited capacity of both public and private sector at present comparative advantages
y Ensuring social responsibility of private sector e) Ensuring that the public health sector is strengthened for
y Social protection, access, equality and quality issues the long‐term and constitutional obligations to health as a
fundamental right are met
Discussion Points Partnership Collaboration
y How can private sector provide services in remote
areas?
y How can government support the private sector?
and
y How can private sector support the government?
y How can both public and private sector work in
collaboration in the context of ‘New Nepal”?
y What is the proper and effective role of the private
sector in areas such as health and education that are Interdependency
constitutionally granted fundamental rights
Thank You