What is it about?

The paper reviews theoretical and empirical literature in order to provide a clear account of the benefits and costs of delivering healthcare infrastructure and services via public private partnerships.

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Why is it important?

Much of the theoretical research has emphasised the benefits of PPP in terms of the bundling and risk transfer features of the model. However, these studies are based on deductive reasoning and largely proceed without reflection on real data. It is apparent from the empirical evidence that PPPs hold promise for decision-makers who prioritise certainty - about costs, quality and service volumes. However, PPPs are also associated with additional costs – especially transaction costs and the costs of private financing. Hence, this paper shows that the key decision that policymakers and managers face is how much extra they are prepared to pay to achieve predictable cost, quality and service outcomes. How much they will pay is determined by a range of variables which decision-makers need to take judicious account of in making procurement decisions.

Perspectives

A synthesis of both theoretical and empirical research on the issue of PPP in healthcare is badly needed!

Dr Mark Hellowell
University of Edinburgh

Read the Original

This page is a summary of: The price of certainty: Benefits and costs of public–private partnerships for healthcare infrastructure and related services, Health Services Management Research, February 2016, SAGE Publications,
DOI: 10.1177/0951484816639742.
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