Contracting vs PPPs

1. Contracting vs PPPs Making our terminology clear Bangkok, May-June 2011 course

2. common terms Options Private sector responsibility Public sector responsibility Provides all clinical services (and staff) and hospital management; manages contract and pays for support services Contracting non-clinical support services Provides nonclinical services (cleaning, catering, laundry, security, building maintenance) and employs staff for these services. Outsourcing Contracting Provides clinical support services such as radiology or laboratory services. Contracting clinical support services Outsourcing;PPP Manages hospital and provides clinical services; manages contract and pays for services. Contracting specific clinical services Outsourcing; PPP Provides specific clinical services (such as lithotripsy; dialysis) or routine procedures (cataract removal). Manages hospital and provides most clinical services; manages contract and pays for services. Buying hospital services Contracted private hospitals provide services in accordance with contractual provisions Contracting; Purchasing Contracts with private hospitals, monitors, pays for services. Contracts with private firm for provision of public hospital services, pays private operator for services provided, and monitors and regulates services and contract compliance. Manages public hospital under contract with government or public insurance fund; provides clinical and nonclinical services. May employ all staff. May also be responsible for new capital investment, depending on terms of contract. Private management of public hospital Operating contract Private financing, construction, and leaseback of new public hospital Manages hospital and makes phased lease payments to private developer. Finances, constructs, and owns new public hospital and leases it back to government PFI Reimburses operator for capital costs and recurrent costs for services provided. BOO Private financing, construction, and operation of new public hospital Services & capital contract Finances, constructs, and operates new public hospital and provides nonclinical or clinical services, or both. Reimburses operator for capital and recurrent costs for services provided. Takes facility ownership at end. BOOT Co-location of private wing or department within or beside public hospital Operates private wing or department (for private & public (?) patients); fulfills payment and service access conditions agreed Manages public hospital for public patients and contracts with private wing for sharing joint costs, staff, and equipment.; supervises fulfillment of patient access and other conditions Co-location Sale of public hospital for alternative use Monitors conversion to ensure adherence to contractual obligations. Purchases facility and converts it for alternative use depending on sales agreement Privatization

3. common terms Options Private sector responsibility Public sector responsibility Provides all clinical services (and staff) and hospital management; manages contract and pays for support services Contracting non-clinical support services Provides nonclinical services (cleaning, catering, laundry, security, building maintenance) and employs staff for these services. Outsourcing Contracting Provides clinical support services such as radiology or laboratory services. Contracting clinical support services Outsourcing;PPP Manages hospital and provides clinical services; manages contract and pays for services. Contracting specific clinical services Outsourcing; PPP Provides specific clinical services (such as lithotripsy; dialysis) or routine procedures (cataract removal). Manages hospital and provides most clinical services Buying hospital services Contracted private hospitals provide services in accordance with contractual provisions Contracting; Purchasing Contracts with private hospitals, monitors, pays for services. Contracts with private firm for provision of public hospital services, pays private operator for services provided, and monitors and regulates services and contract compliance. Contracting Manages public hospital under contract with government or public insurance fund; provides clinical and nonclinical services. May employ all staff. May also be responsible for new capital investment, depending on terms of contract. Private management of public hospital Operating contract Private financing, construction, and leaseback of new public hospital Manages hospital and makes phased lease payments to private developer. Finances, constructs, and owns new public hospital and leases it back to government PFI Reimburses operator for capital costs and recurrent costs for services provided. BOO Private financing, construction, and operation of new public hospital Services & capital contract Finances, constructs, and operates new public hospital and provides nonclinical or clinical services, or both. Reimburses operator for capital and recurrent costs for services provided. Takes facility ownership at end. BOOT Co-location of private wing or department within or beside public hospital Operates private wing or department (for private & public (?) patients); fulfills payment and service access conditions agreed Manages public hospital for public patients and contracts with private wing for sharing joint costs, staff, and equipment.; supervises fulfillment of patient access and other conditions Co-location Sale of public hospital for alternative use Monitors conversion to ensure adherence to contractual obligations. Purchases facility and converts it for alternative use depending on sales agreement Privatization

4. common terms Options Private sector responsibility Public sector responsibility Provides all clinical services (and staff) and hospital management; manages contract and pays for support services Contracting non-clinical support services Provides nonclinical services (cleaning, catering, laundry, security, building maintenance) and employs staff for these services. Outsourcing Contracting Provides clinical support services such as radiology or laboratory services. Contracting clinical support services Outsourcing;PPP Manages hospital and provides clinical services; manages contract and pays for services. Contracting specific clinical services Outsourcing; PPP Provides specific clinical services (such as lithotripsy; dialysis) or routine procedures (cataract removal). Manages hospital and provides most clinical services Buying hospital services Contracted private hospitals provide services in accordance with contractual provisions Contracting; Purchasing Contracts with private hospitals, monitors, pays for services. Contracts with private firm for provision of public hospital services, pays private operator for services provided, and monitors and regulates services and contract compliance. “PPPs” Manages public hospital under contract with government or public insurance fund; provides clinical and nonclinical services. May employ all staff. May also be responsible for new capital investment, depending on terms of contract. Private management of public hospital Operating contract Private financing, construction, and leaseback of new public hospital Manages hospital and makes phased lease payments to private developer. Finances, constructs, and owns new public hospital and leases it back to government PFI Reimburses operator for capital costs and recurrent costs for services provided. BOO Private financing, construction, and operation of new public hospital Services & capital contract Finances, constructs, and operates new public hospital and provides nonclinical or clinical services, or both. Reimburses operator for capital and recurrent costs for services provided. Takes facility ownership at end. BOOT Co-location of private wing or department within or beside public hospital Operates private wing or department (for private & public (?) patients); fulfills payment and service access conditions agreed Manages public hospital for public patients and contracts with private wing for sharing joint costs, staff, and equipment.; supervises fulfillment of patient access and other conditions Co-location Sale of public hospital for alternative use Monitors conversion to ensure adherence to contractual obligations. Purchases facility and converts it for alternative use depending on sales agreement Privatization