Public/Private Sector Partnership
As Universal Healthcare is increasingly embraced as an overarching goal, the challenge of creating the capacity to provide access to quality healthcare becomes even more critical. The Indian healthcare system is already largely private. At not much more than 1% of GDP, government spending is very low for an emerging market country. While more rapid growth had been planned, this has not yet happened to a significant degree. Private spending remains on the order of 70% of the total, and this applies to the poor as well as the middle class. Despite the government model for a universal health care delivery system, service delivery also is largely private. Approximately 60% of all inpatient capacity and 80% of outpatient capacity is private.
Historically, the public and private sectors have operated largely in isolation from each other. However, there is great potential to be had in collaboration. The rapid increase in public insurance schemes that contract with private providers represent a new tool for collaboration and a great opportunity. Likewise, direct formal PPP contracting, which has largely been confined to major hospitals, could be applied all the way down to primary care and all the way out to full health care systems.
The Institute will become a leader in exploring and communicating the opportunity that rests in public-private partnerships and public insurance. It will study and demonstrate the gains to be produced, the risks and problems that can arise, and the approaches that are effective. It will examine how both public and private insurance impact the delivery system, and how they can be used as a tool to alter the dynamics of the market. This will include contracting and payment structures that reward clinical appropriateness, efficiency and quality. The Institute will carry out research and focused studies, engage with both the private and public sectors, convene stakeholders to exchange information and create partnerships. Finally, it will evaluate the impact of such efforts and identify what is critical for success