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Inkosi Albert Luthuli Central Hospital, a success case of PPP in Healthcare

PPP projects in healthcare are still subject of public debates between skeptics of the effects of “privatizing” the healthcare sector, especially after the failure of some projects in countries like Australia, Japan and Italy (1), from one side and the defenders of this model to face the constraints of public resources and to use the experience of the private sector in this field from the other.  Actually, there is no country in the world where healthcare is financed entirely by the government. While the provision of health is widely recognized as the responsibility of government, private capital and expertise are increasingly viewed as welcome sources to induce efficiency and innovation. (1)  The aim of this article is to present a successful case of PPP hospital project, Iknosi Albert Luthuli Central Hospital (IALCH) in South Africa. It will analyze the contract and the role of the private partner and will discuss the keys of success.  This successful case shows tha...

Reconstruction of the health system in Syria after the war

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Why Healthcare Projects Need Identification and Pre-Feasibility Before Full Feasibility

The most valuable early-stage decision may be to reshape or stop a project before major resources are committed. A hospital project can respond to a genuine healthcare need and still be the wrong investment. The problem may not be an inadequate design or an unsuitable financing structure. It may be more fundamental: the project may have defined the solution before it properly understood the need. The wrong starting question Healthcare infrastructure projects often begin with a physical answer: a 200-bed hospital, a specialist centre, an extension to an existing facility or a new diagnostic unit. Political urgency, visible capacity shortages and stakeholder expectations can create pressure to move quickly toward design, tendering and financing. Yet “What should we build?” is not the first question. The first question is “What health-service problem must be solved?” This distinction matters because infrastructure is only one possible response to a healthcare need. A shortage of accessibl...