Ziqitza Healthcare ltd - Why public private partnership is blooming in India
The public
private partnership model gained popularity in the late 1980s, as an
alternative tool to address the infrastructural inadequacies and to assist the
governments in overcoming the financial investment constraints. The public
private partnership model or framework gained prominence or became popular in
both developing and developed nations.
The Government of
India defines the public–private partnership or PPP or 3P as a commercial legal
relationship. Ziqitza
Healthcare ltd, a prominent healthcare and emergency service providing
organisation explains that public private partnership is an arrangement between
a government, or statutory body or government owned body on one hand, and a
private sector company or entity or body on the other hand, for provision of
public services.
Ziqitza elaborates that the government of India
recognizes several types of PPPs such as, Performance based
management/maintenance contracts, Modified design-build (turnkey) contracts,
and User-fee based BOT model. The country
today stands witness to hundreds of projects based on public private
partnership models in various stages of implementation.
The Government of India is committed to
improving the level and the quality of economic and social infrastructure
services across the country. In pursuance of this goal, Ziqitza
Healthcare explains that the government envisages a substantive role for Public Private
Partnership (PPPs) as a means for harnessing private sector investment and
operational efficiencies in the provision of public assets and services.
In the last one and half decade, India
has witnessed exponential growth in PPPs, and has emerged as a leading PPP
market across the globe. The credit for the framework's adoption goes to the
central as well as state governments for introducing several policies and
institutional initiatives targeted at adoption of the PPP framework and to
leverage its benefits. Ziqitza Rajasthan,
points out that the central government has categorically set up a Public
Private Partnership Appraisal Committee to manage and streamline appraisal and
approval of projects. ZHL Rajasthan
states that the central government has set up transparent and competitive
bidding processes to ease the process of PPP within the country. The government
has also provided for cross sectoral support to the PPPs through
Viability gap funding, user charge
reforms, project development funds, as well as institutional and individual
capacity building.
Ziqitza
Limited correctly points
out that India’s healthcare system faces multiple challenges in terms of
improving the quality of service and also ensuring equitable access to
healthcare for all. India’s healthcare needs to strengthen itself to be able to
tackle future epidemics and pandemics, and also be able to manage the disease
incidence profiles. And this can only be addressed with concerted effort of
both public and private sectors. Ziqitza Limited Rajasthan,
points out that India has been suffering with healthcare inadequacies and this
grim reality became more evident during the second wave of the COVID-19
pandemic. Unlike the first wave where the country was caught off guard, the
second wave proved lethal due to lack of India’s preparedness, lack of adequate
vaccines, oxygen, beds, medicines etc.
Ziqitza
Health care limited points out that
these glaring gaps in terms of lack of access to healthcare infrastructure,
accessibility, availability of medicines, inadequate health facilities etc, can
be addressed through an effective and efficient public private partnership. Few
benefits of PPP model in terms of strengthening the Indian healthcare system:
-
Expertise: The experience and management expertise synonyms with the private
sector can assist in revamping public medical facilities.
-
Mutual Financial Benefits: The private sector can leverage its large funds
to build healthcare infrastructure. Similarly, the public sector can bring in
the required subsidies and accessibility.
-
Increased Availability: The public private partnership model will assist
the government with required resources to make healthcare available for the
larger masses.
-
Affordable Healthcare: PPPs high-volume, low margin strategy can help
attain universal healthcare for all.
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