Identifying opportunities in Public-Private Partnership

Identifying opportunities in Public-Private Partnerships : 

Dr. Nader Elbokle, DDS, MSc, PhD Assistant Professor, Cairo University, CEO, Sama Clinics & Surgi-Centers, Partner, Medical Consultancy Group, Egypt Egyptian Healthcare Financial Managers Consortium(EG-HFMC) Identifying opportunities in Public-Private Partnerships

Public Private Partnership in Health: : 

Public Private Partnership in Health: PPP in health is an approach to addressing public health problems through the combined efforts of public, private and development organizations complimenting each other by contributing or sharing their core competency. This synergy leads to better outcome of goals EG-HFMC

Why are governments turning to PPPs? : 

Spread the costs of procuring an asset over time and/or cause the associated capital expenditure to affect private firms' rather than the public sector's balance sheets. Adopt a PPP to deliver public services that might otherwise be unaffordable to a government. Why are governments turning to PPPs? EG-HFMC

Economic advantages for Private sector: : 

Supporting a healthy workforce Access to markets Strengthened relationships with government decision-makers Support for the long-term economic growth of new markets Expansion of distribution channels Development of stable and positive business conditions Economic advantages for Private sector: EG-HFMC

Successful PPPs… : 

Are based on a solid business case, including quantitative and qualitative benefits. Each party should understand its contributions that are complimentary to the PPP mission Include a driver who helps establish the PPP and remains involved to ensure success Include strategies to transition to new partners or to disband the partnership  Sustainability of service Successful PPPs… EG-HFMC

Types of PPPPublic-Private Partnerships come in a variety of forms and no two PPP projects are exactly alike: : 

• Types of PPPPublic-Private Partnerships come in a variety of forms and no two PPP projects are exactly alike: O&M: Operations and Maintenance OMM: Operations, Maintenance & Management DB: Design-Build DBM: Design-Build-Maintain DBO: Design-Build-Operate DBOM: Design-Build-Operate-Maintain DBFOM: Design-Build-Finance-Operate-Maintain DBFOMT: Design-Build-Finance-Operate-Maintain-Transfer BOT: Build-Operate-Transfer BOO: Build-Own-Operate BBO: Buy-Build-Operate Developer Finance LDO or BDO: Lease-Develop-Operate or Build-Develop-Operate Lease/Purchase Developer Finance EG-HFMC

Slide 7: 

Steps for Identifying Partnership Opportunities

Analyze Target audience (Egypt)Consumer – Provider - retailers : 

Analyze Target audience (Egypt)Consumer – Provider - retailers

Analyze Target audienceConsumer – Provider - retailers : 

Analyze Target audienceConsumer – Provider - retailers EG-HFMC

Analyze Target audienceConsumer – Provider - retailers : 

• Analyze Target audienceConsumer – Provider - retailers EG-HFMC

Analyze Target audienceConsumer – Provider - retailers : 

Analyze Target audienceConsumer – Provider - retailers EG-HFMC

Analyze Target audienceConsumer – Provider - retailers : 

Analyze Target audienceConsumer – Provider - retailers EG-HFMC

Analyze Target audienceConsumer – Provider - retailers : 

• Analyze Target audienceConsumer – Provider - retailers EG-HFMC

Investigate Government / MOH policies : 

• Investigate Government / MOH policies On July 6th, 2005 President Mubarak has announced the six dimensions of the National Plan for Improvement of the Health Sector (Health Sector Reform Program (HSRP) ): 1. First dimension: “Improving the managerial and administrative capacity of Health Insurance Organization through separation between financing and providing of health services”. 2. Second dimension: “Establishing of Family Health Fund at each Governorate”. 3. Third dimension: “Include the uninsured population, with the health insurance system”. EG-HFMC

Investigate Government / MOH policies : 

• Investigate Government / MOH policies 4. Fourth dimension: “Rolling Out of Family Health Model on the nation wide with participation from the private and NGO”. 5. Fifth dimension: “Improving the health services for the secondary care”. 6. Sixth dimension: “Integrating all the current health care providers under one entity to provide universal health insurance by the year 2010”. EG-HFMC

Egypt Current Situation : 

• Egypt Current Situation High demand for state-of the-art, sophisticated healthcare services provides an opportunity for foreign investors and providers to penetrate the market. The government owns major facilities & hospitals that are lacking in quality, equipments, maintenance & management. Core Areas for Investment: Private hospitals, health tourism, elective procedures (cosmetics), pharmaceuticals, continuing education programs, healthcare platforms and software, rural healthcare The most promising vehicle for healthcare investment in Egypt are public private partnerships (PPP). EG-HFMC

New Ventures and PPP Opportunities : 

• New Ventures and PPP Opportunities Medical city Project - Alexandria Project Description: Establishing an integrated medical city over an area of 200 Feddan in Western Alexandria, behind Carrefour Hypermarket, containing hospitals and clinics, recovery centers, five star hotels, R&D centers and laboratories, and a center for medical education Sponsor: Alexandria Governorate and Ministry of Health EG-HFMC

The Challenge : 

The Challenge Public Sector The MOH / Public sector is still studying the PPP & has not launched yet. Political & cultural issues among the population with fear of privatization of the MOH facilities –> RELUCTANT Private Sector Lack of information & publicity about Egypt’s position in healthcare & stability of economy  less inviting to foreign investment (improving) Fear of public sector authority on the project especially in developing countries EG-HFMC

View Point : 

For PPP to succeed in Egypt, it has to be backed up by the government / public. The government has to do the initiative . Flexibility: a degree of flexibility on both public & private side, willingness to let go of a degree of control to the partnership and accept a degree of uncertainty. View Point EG-HFMC

View Point : 

The major player for the success of PPP will be the driver which I believe is the role of consultancy firms & foundations with knowledge & know how. Act as the : subject matter expert, translator, broker, enforcer and motivator to ensure forward motion throughout the life of the PPP. View Point EG-HFMC

Slide 21: 

Identifying opportunities in Public-Private Partnerships THANK YOU! EG-HFMC