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“Healthcare can learn a lot from successful PPPs in infrastructure”

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The state of a nation’s healthcare can be a good measure of a nation’s health. In India, the healthcare sector needs urgent attention and investment. One way to address the deficit is through Public Private Partnership models. Policy frameworks to do the same were discussed today at a conference – ‘Public Private Partnership: Policy Framework’ organised by Confederation of Indian Industry (CII) and International Finance Corporation (IFC) – a member of the World Bank Group.
Putting the focus of the seminar into perspective, Gajendra Haldea, IAS – Advisor to Dep-uty Chairman (Infrastructure), Planning Commission, Government of India said, “India is one of the largest countries in many sectors but our healthcare is in shambles. There’s a lot to be done and the need is to do it quickly.”

He said the way to do this is take lessons from other sectors. “Infrastructure projects were in shambles once. But they have come up recently because there’s a model framework in place and the government paid the attention that the sector demanded. We need to pick up lessons from infrastructure and see if can be replicated in healthcare,” Mr. Haldea said.
The largest challenge in doing so, be believed, is to make policy that can be customised with ease and replicated across the country. He also stressed that it was the government’s job to provide affordable quality healthcare to the common man. “In healthcare the main challenge is not the initial capital expenditure. It is actually funding the recurring costs. The government has to step in to ensure that the recurring cost can be subsidised or taken care of in some way.”
Thomas Davenport, Director – South Asia International Finance Corporation said, “The Indian challenge in healthcare is unique. It demands scale and simple, replicable models that can be customised to unique local requirements. The responsibility of the private sector is to standardise PPP while the government needs to expand opportunities for private sector growth in the sector.” In India, among other interventions IFC helps structure and design PPP transactions to support-providing basic services including healthcare to underserved and low income segments.

Dr Vivek Desai, Chairman, CII WR Healthcare Sub-Committee & Managing Director- Hos-mac India, said, “Success of PPP in Indian healthcare will require a two pronged strategy. One is to have a model, broad framework for the PPP agreement which needs to be a win-win one that will benefit all the parties. Secondly the revenue models need to be put in place without which it is difficult for healthcare to give returns on investments.”

Dr Desai put the spotlight on a key aspect in the healthcare sector when he said, “One of the key factors preventing the growth of the sector is human resources. When we scale up healthcare capacity we also need skilled manpower to go with the same. We have one million doctors but the need is for two million. How will we bridge this deficit?”
This challenge, he believes, also creates an opportunity. “We need all kinds of people in the healthcare sector from ward boys to specialist doctors. This has the potential to be a very big employment generator at various levels.”

Being the World Environment Day today, Dr. Desai also talked about green initiatives in the sector, “We are working towards creating guidelines for green field and brown field hospitals to become energy efficient.”
Successful PPP case studies from across the country were discussed at a special session later in the day. What emerged is that PPP is possible in healthcare. What is needed is to work around outreach, affordability and financial viability. The case studies highlighted ways to do that.
This one of its kind conference to be held over two days brings all stakeholders in the healthcare industry under one roof to deliberate on the policy framework required to ad-dress the needs of the industry and through that, the healthcare needs of the nation.
Under its initiative to promote the healthcare sector, CII is organising a spate of events. The most important happening in October, ‘Hospital Tech 2012’ a international exhibition and seminar on the technologies associated with the sector.

“Healthcare can learn a lot from successful PPPs in infrastructure”

 

The state of a nation’s healthcare can be a good measure of a nation’s health. In India, the healthcare sector needs urgent attention and investment. One way to address the deficit is through Public Private Partnership models. Policy frameworks to do the same were discussed today at a conference – ‘Public Private Partnership: Policy Framework’ organised by Confederation of Indian Industry (CII) and International Finance Corporation (IFC) – a member of the World Bank Group.

 

Putting the focus of the seminar into perspective, Gajendra Haldea, IAS – Advisor to Deputy Chairman (Infrastructure), Planning Commission, Government of India said, “India is one of the largest countries in many sectors but our healthcare is in shambles. There’s a lot to be done and the need is to do it quickly.”

 

He said the way to do this is take lessons from other sectors. “Infrastructure projects were in shambles once. But they have come up recently because there’s a model framework in place and the government paid the attention that the sector demanded. We need to pick up lessons from infrastructure and see if can be replicated in healthcare,” Mr. Haldea said.

 

The largest challenge in doing so, be believed, is to make policy that can be customised with ease and replicated across the country.

 

He also stressed that it was the government’s job to provide affordable quality healthcare to the common man. “In healthcare the main challenge is not the initial capital expenditure. It is actually funding the recurring costs. The government has to step in to ensure that the recurring cost can be subsidised or taken care of in some way.”

 

 Thomas Davenport, Director – South Asia International Finance Corporation said, “The Indian challenge in healthcare is unique. It demands scale and simple, replicable models that can be customised to unique local requirements. The responsibility of the private sector is to standardise PPP while the government needs to expand opportunities for private sector growth in the sector.” In India, among other interventions IFC helps structure and design PPP transactions to support-providing basic services including healthcare to underserved and low income segments.

 

Dr Vivek Desai, Chairman, CII WR Healthcare Sub-Committee & Managing Director- Hosmac India, said, “Success of PPP in Indian healthcare will require a two pronged strategy. One is to have a model, broad framework for the PPP agreement which needs to be a win-win one that will benefit all the parties. Secondly the revenue models need to be put in place without which it is difficult for healthcare to give returns on investments.”

 

Dr. Desai put the spotlight on a key aspect in the healthcare sector when he said, “One of the key factors preventing the growth of the sector is human resources. When we scale up healthcare capacity we also need skilled manpower to go with the same. We have one million doctors but the need is for two million. How will we bridge this deficit?”

 

This challenge, he believes, also creates an opportunity. “We need all kinds of people in the healthcare sector from ward boys to specialist doctors. This has the potential to be a very big employment generator at various levels.”

 

Being the World Environment Day today, Dr. Desai also talked about green initiatives in the sector, “We are working towards creating guidelines for green field and brown field hospitals to become energy efficient.”

 

Successful PPP case studies from across the country were discussed at a special session later in the day. What emerged is that PPP is possible in healthcare. What is needed is to work around outreach, affordability and financial viability. The case studies highlighted ways to do that.

 

This one of its kind conference to be held over two days brings all stakeholders in the healthcare industry under one roof to deliberate on the policy framework required to address the needs of the industry and through that, the healthcare needs of the nation.

 

Under its initiative to promote the healthcare sector, CII is organising a spate of events. The most important happening in October, ‘Hospital Tech 2012’ a international exhibition and seminar on the technologies associated with the sector.

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