Access to affordable, quality healthcare is a key driver of economic growth and development.
However, persistent epidemics, a rising incidence of non-communicable disease, increasing cost and complexity of diagnosis and treatment, along with growing global demand for more and improved healthcare come together to create a complicated and costly challenge.
As these needs and expectations grow for more and better health care services, most countries face serious resource constraints. The public sector is often constrained by lack of: funding; access to innovation and technology; and efficient and experienced healthcare management.
Benefits of PPP in healthcare sector:
- Improved operation and efficiency by adopting private sector technology and innovation
- Facilitating the development of new/refurbished primary, secondary and tertiary health facility infrastructure;
- Increasing quality by delivering services to contractually defined standards;
- Expanding access to scarce clinical skills by employing and training staff
- Increasing the quality of care by ensuring regular maintenance and technology upgrades
- Long term value-for-money (VFM) created through appropriate risk sharing throughout the whole life of the project.
PPP (Public Private Partnership) is the general term for partnerships which involve everything from operating facilities and providing services on behalf of the public, to flexible methods of financing these services.
PPP enable the delivery of efficient, cost-effective and measurable public services within modern facilities whilst minimising the financial risk. Public-private partnerships (PPPs) can help expand key health services and improve quality, hospital design, management and maintenance complementing the traditional public-sector approach with various forms of private-sector participation.
PPP model in Georgia– step forward for hospital sector!
Excellent and speedy progress has been made to date, by Georgia’s state-owned shareholding company – the Partnership Fund (PF) and AlphaMedic** and the project is well developed at this stage, including a viable and competitive funding solution.
AlphaMedic is delighted to have been selected as the Preferred Developer for this exciting landmark project. Further, Project Heads of Terms were successfully agreed in January this year between Partnership Fund and Alphamedic. This was a significant milestone reached by both parties in the development of a new and innovative type of investment in Georgian healthcare.
Georgian clinics are about (in a relative term) to get a lot closer to European standards. Three major hospitals are to get a complete overhaul as part of an ambitious reformative project, which, among other things, promises to reduce the cost of medicines by 30 percent. The hospitals in question are the Central Republican Hospital, the Tbilisi Oncology Center and the Khliani Children’s Infectious Disease Hospital.
The representatives of AlphaMedic Consortium said the company was ready to invest 250 million GEL to rehabilitate the three hospitals. According Minister’s statement, the total cost of the project was expected to reach about 0.5 billion GEL, which the agreement stated would be jointly covered by the tender-winning company and the PF.
In order to maintain the excellent progress achieved to date, the following milestone is next to be met within the project programme: Signing of Partnership Fund – AlphaMedic Shareholder Agreement
AlphaMedic is a consortium of healthcare infrastructure and service delivery partners which develops Public-Private Partnership (PPP) project solutions, based in Vienna, Austria.