AN EVALUATION OF PUBLIC PRIVATE PARTNERSHIPS IN THE POLOKWANE PROVINCIAL HOSPITAL
Date
2012-12-04
Authors
MKANSI, AGREED PFUMELANI
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Abstract
Limpopo Department of Health and Social Development is responsible for the provision of public health services in the Limpopo Province according to the Constitution of RSA, Act 108 of 1996, in making provision for the rights of access to services, including Health and Social Development. For the mandate to be effectively realized there is a need for financial strength as the annual budget awarded to the Province is insufficient and the influx of non-South African citizens is on the rise. These are some of the challenges which impact on service delivery that the Department is faced with.
The Department’s insufficient budget influenced it to look at alternative ways in which to render one of their mandates - renal treatment through public private partnerships (PPPs). Previously, the department registered projects but failed to pursue it due to affordability reasons. PPPs have been regulated through the PFMA; Treasury Regulations 16; Standardised Public Private Partnership Provisions and many other Acts and regulations depending on the type of PPPs and sector in which it exists.
The research evaluated the success of risk transferred from government to private sector as experienced by Polokwane Provincial Hospital Renal Dialysis Unit, with the aim of using it as a best practice example. A case study on the Renal Dialysis Unit was applied to draw the evaluation, comparing PPPs to traditional procurement. The results revealed a number of disadvantages with traditional procurement practice, budget and poor planning being only a few of the problems.
It was revealed through this research that if a feasibility study is conducted and the three litmus tests adhered to i.e. value for money, affordability and risk transfer, the chances were better for the success of the PPP. The research revealed that major risks were transferred to the private partner including design, build, finance, operation and maintenance. The research concluded after interviews, questionnaires, documentary analysis and literature reviews, that it is possible to achieve quality public health through the application of a PPP. There are a number of factors which contribute towards a successful PPP programme such as monitoring and a pre-determined payment structure, ensuring that risk would be transferred to the partner best positioned to carry it. A PPP programme can be used as a best practice example.
Description
MM thesis - P&DM
Keywords
Public-private partnerships, Hospitals, South Africa