PUBLIC-PRIVATE PARTNERSHIP IN HEALTH SECTOR: AN ALTERNATIVE TO PRIVATIZATION
BACKGROUND
Public-private ownership (PPP or P3) refer to contractual agreements established between public agency and private sector entity allowing the latter with the greater participation in the delivery of projects based on the former’s specifications. Congregating with the concept of mutual-helping, partnerships help to deliver the quality services as well as enable the public sector to benefit from the commercial dynamism, innovations and efficiencies along with the capitals, skills and experiences of the private entity. Putting a better value for money, this means that within the resource available, both entities can deliver more fundamental services and to higher standard which would have not been possible if done independently.
Some of the reasons that the public health agency could otherwise profit from PPP are: acceleration of implementation of highly-prioritized projects such as family planning and nutrition services by packaging and procuring services in innovative ways; acquire specialized management capacity for large and complex programs/projects; enable to deliver new technologies that private entities developed; draw on private entity’s expertise in accessing and organizing wider array of private sector financial sources; encourage private entrepreneurial development, ownership and operation of various health and related assets and allow the reduction in the size of the public agency and substitution of private sector resources and personnel.
This paper presents a proposal to research and to explore the economic sustainability of venturing into public-private partnership instead of privatization in health sector and to evaluate the degree of necessary convergence between public and private as separate entities leading to economic synergy. The focus of my research is on why the health sector should consider public-private partnership instead of privatization. This paper will not condemn privatization since it has beneficial effects from improved productivity to better economy; however, the general effects varied from industry to industry. Such subject is of relevance to me as after the completion of my PhD, I assume a role within the sector. This research will thereby help me understand and learn the application of my learning.
RESEARCH QUESTIONS AND OBJECTIVES
1) Why is there a need for public-private partnerships in health sector? What are the key benefits and drawbacks of PPPs?
2) Is PPP economically sustainable? In what ways?
3) What are the risks and rewards? How are these allocated in private-public partnerships?
4) What activities are involved in health partnerships? How they shall be combined?
5) How PPPs impact existing regulations in the country and/or vice versa? Is there a need for a new legislation?
6) What entities shall health partnerships are involved in the process? What types of financing mechanisms are available for health partnerships?
The main purpose of the research is to:
1) To analyze the necessity of public-private partnerships in the health sector
2) To analyze and evaluate the drivers behind entering into PPP agreement
3) To investigate the economic feasibility of health partnerships
4) To study the whole process of PPP from agreement to implementation
RESEARCH PLAN
1) Validity and Reliability
Validity is the most important criteria whereby the research question is being addressed appropriately. To ensure validity, semi-structured interviews would be carefully panned. Prior, the fundamentals of public-private partnership as applied to health sector will be circumspectly studied to ensure that the “findings are really about what they appear to be” (Saunders, et al, 2007, p. 150).
Reliability should provide for the possibility to replicate the results. The four threats to reliability will be avoided such as subject of participation error, subject of participant bias, observer error and observer bias. To ensure reliability, I will plan an interview with the highest degree of structure possible to reduce participant bias and observer error; analyze without personal bias and have blinded researcher for an independent analysis to lessen observer bias.
2) Research Perspective
In my research, I will be using the interpretivist approach as the research is exploratory in nature. I will be exploring the different aspects presented in questions section. I will also be exploring on the different activities and main drawbacks of privatization and why it is unsuitable for the health sector. Thereby, using an inductive approach to form a theory as to why public-private partnership must be a priority and not privatization.
3) Research Design
My research will operate within the longitudinal design as I will be collecting data on more than one case using questionnaires, interviews, structured observation and document analysis. The benefit of this is to be able to focus on the breadth and depth of the research while also increasing the validity and truthfulness of the research and thereby minimize confounding factors.
Basically, the research is exploratory wherein an array of qualitative and quantitative data will be collected and researched upon. Primary data are the findings from the interviews. The secondary data that I will be using is in the form of Internet websites, policy papers, journal articles, newspapers and magazine articles and databases.
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