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South Africa not Gaining the Full Benefit of PPPs in the Healthcare Sector, Says Frost & Sullivan
Date:5/6/2009

CAPE TOWN, South Africa, May 6 /PRNewswire/ -- The healthcare industry in South Africa faces substantial challenges, including vast inequalities in access to care. The public sector is responsible for serving approximately 85.0% of the population, yet accounts for around only 49.0% of healthcare spend.

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Public-private partnerships offer an innovative means to address some of these inequalities.

"Several mutually beneficial opportunities exist for collaboration between the public and the private sectors," says Frost & Sullivan (http://www.healthcare.frost.com) healthcare analyst Lore Kannegiesser. "Government has taken some steps to encourage implementation of such partnerships, and several partnership contracts are on-going."

The private sector could clearly play an important role in the country's healthcare system by stimulating competition between providers, and encouraging greater levels of efficiency and quality. However, the positive spin-offs for them should not be discounted.

"PPPs offer private healthcare providers access to a wider patient base and the potential for generation of additional revenues," Kannegiesser says. "They also offer the opportunity to engage in transformational issues to improve their socially responsible image. This is particularly important in an environment where they are facing increasing allegations of contributing to rising healthcare costs."

Partnerships can range from the private sector providing a single incidence of care to a public sector patient, to concessions where a private sector organisation supplies the capital required for development of new f
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SOURCE Frost & Sullivan
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