Public Private Partnerships in Health Care: European PPP models and factors influencing the positive outcome of such ventures

Siroky, Joseph Yan

A number of European countries are turning to private finance for public hospitals and other healthcare infrastructure. Public-private partnerships (PPP) are intended to bind private sector efficiencies, secure appropriate risk transfer between hospital operators, infrastructure owners and other partners, and ensure optimum whole-life asset management. This paper discusses the different factors that influence significantly the outcomes of European PPP ventures, the scope of different PPP models, and experience so far in delivering new infrastructure and stimulating innovation and quality improvements. Finally, it draws conclusions, through recent case studies, on the factors that have a significant influence in shaping PPP models and policies. The methods used were extensive literature research and analysis, further supported by case study analysis of the Pembury Hospital, Braga Hospital, Berlin Buch Hospital and De La Ribera Hospital. The outcome of this paper draws upon the concept of "bundling" of services and concludes that this may be seen as a way of providing more appropriate risk allocation that creates incentives for efficient and effective behavior of the private sector.

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