PUBLIC PRIVATE PARTNERSHIP IN HEALTH SECTOR: MODELS & THE AGRA EXPERIENCEProf. Deoki NandanDirectorNational Institute of Health & Family Welfare, New Delhi
Public Private Partnership in HealthDefinition:Public-Private Partnership (PPP) is a collaborative effort, between private and public sector, with clearly identified partnership structures, shared objectives, and specified performance indicators for delivery of a set of health services (MOHFW,GOI)
Objectives of Public Private Partnership in HealthImproving access to essential services Improving the quality of services availableExchange of expertiseMobilize additional resourcesfor activitiesImprove efficiencyBetter Managementof Health servicesIncreasing scope and scale of services Increasing community ownership of programs.Ensuring optimal utilization of govt. investment and infrastructure
Economies of ScaleEconomies of ScaleUtilising Existing CapacityUtilising Existing CapacityCreate SynergyCreate SynergyBetter ServicesBetter ServicesBetter HealthTargeting the PoorTargeting the PoorFlexibility in ActionFlexibility in ActionResource MobilisationResource MobilisationTechnical UpgradationTechnical UpgradationThe Benefits of PPP are
Models of Public Private Partnerships in HealthSocial Franchising Branded Clinics Contracting Social MarketingBuild, Operate and Transfer Joint Venture Voucher System Donations from individualsPartnerships with Social Clubs and Groups (e.g. Rotary Club)Involvement of Corporate sectorPartnership with Professional AssociationsCapacity Building of Private ProvidersAutonomous InstitutionsMobile Health VansHealth Insurance
Social Franchising“ A franchise is a contractual relationship between the franchiser and franchisee in which the franchiser offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade-name, format and/ or procedure owned and controlled by the franchiser and in which the franchisee has or will make a substantial capital investment in his business from his own resources”-International Franchise Association
The Merrygold Network (USAID, SIFPSA & HLFPPT), Uttar PradeshProvides high quality MCH services at affordable prices. Network comprises of seventy - 20-bed Merrygold Hospitals, 350 - Merrysilver clinics and 10,500 - Merrytarang Ayush partners. The franchisees of this network are being provided training, marketing and quality assurance support
Controlling Quality of Services
Positioning on Price/ Quality – Trade off between Social goals and Provider Satisfaction
Understanding motivation of Clients for Accessing ServicesChallenges
Social Franchising - Criteria for InitiationRevitalising present Government structure is slowResources required to expand public health infrastructure is enormous. High demand but poor supply from government health institutionsAvailability of vast network of private hospitals in places neededWhen objective is to improve access to services on immediate basis.Improve quality standards of private sector and provide high quality care at affordable prices
Branded ClinicsChain of Clinics – Same OrganisationCater to better-off clients – Market SegmentationMore Income 	 	More 						   SustainableEg. Butterfly clinics, titli centres in Bihar,MP
Example With the support of States, an NGO Janani set up a network of more than 21,000 Titli (butterfly) centres and more than 500 Surya (sun) clinics in Bihar, Jharkhand and Madhya Pradesh. Surya clinics are referral clinics run by formally qualified, state-registered doctors in the towns.Titli centres are situated in villages and run by RHPs who have been trained to provide family planning counselling and sell non-clinical contraceptives.
Branded Clinics – Criteria for initiationNeed to expand services rapidlyNeed to provide high visibility to services availableOffer a package of services selected for the purposeProvide high quality services at comparatively affordable prices
Contracting – Contracting-in and Contracting-outLegally enforceable ContractDefined Set of healthcare services
Quantity of services
Quality of services
Duration of Service ProvisioningPrivatePublicRemuneration
Contracting Out & InExamplesContracting outState Govts. Has contracted out few PHCs in Karnataka, Arunachal Pradesh to by Karuna Trust, VHAI Subcentres in Uttarakhand to  NGOsContracting in    Human resources by almost all states	 under NRHM			           	-Radiology, drug stores etc.eg. SMS Hospital, Jaipur		     	-Diet, cleaning, laundry  etc. in almost all states
Criteria for initiating Contracting-outDifficult to manage government health units in remote and inaccessible areas Utilization of services and performance levels are consistently low due to non-availability of staff Aim is to put government health facilities to optimum use Increase responsiveness of government health facilities to local needs through community involvement
Criteria for initiating Contracting-inImprove efficiency levels of services providedMake management of services more effectiveConserve scarce resources by cutting costs Try out innovative approaches to improve efficiency and effectiveness
Voucher System/ Demand Side FinancingA voucher is a document that can be exchanged for defined goods or services as a token of payment (tied-cash).Eg: AGRA, Hardwar
Voucher System – Criteria for InitiationImprove access to services and provide choiceWhere costs act as a major barrier to servicesExisting public healthcare service delivery points do not have provision for all types of servicesInadequate knowledge about the value of services (e.g. importance of antenatal care)Need to generate demand for healthcare servicesPossible to do regular monitoring for ensuring quality standardsTraining of providers and network with the people to ensure proper use of vouchers is possible
Donations From IndividualsDonations from rich philanthropistsinstitutions Need for simple and transparent mechanisms to encourage donations
Partnerships with Social Clubs and GroupsSocial Clubs likeRotaryLions’They have been proven to be useful in:Popularising reformed healthcare service delivery outletsIn communication campaigns Management of camps on a large scaleProviding additional resources and technical expertise Advocacy efforts
Involving the Corporate SectorOrganised Corporate Sector throughCIIFICCIE.g. Indo-Gulf Fertilisers’ Health Initiative and recent Health Conclave by CIIAdoption of Villages for providing primary health care services – TVS  -in Karnataka
Partnerships with Professional AssociationsExpert Pool IAPSM, IPHA
FOGSI – Vande Matram scheme
IMA – Aao Gaon Chalein
TNAI
Pharmacists AssociationsProtocols/ Quality Assurance/ Accreditation
Mobile Health VansAlready implemented in inaccessible areasComprehensive Health ServicesFixed Journey Plans Public Sector contribution Medical Officers and MedicinesPrivate Sector for Purchase and Management of VansThese vans are useful in:Provide access to services people living in inaccessible terrainMake services available at central location to reduce travel time and costs of clientsUnder NRHM many states have introduced this scheme
Health Insurance CGHS – Tie up with private hospitals RSBY – Empanelled private hospitals ESIS  - Panel of private hospitals & empanelment  of private doctors
Initiating Public Private Partnerships in HealthPrioritizing needsEvaluating and analyzing the ground realitiesSelecting the appropriate modelPiloting the modelEvaluating the pilotScaling up
Initiating PPP in Health - Vital Components: STRAIGHTIdentifying the SCOPE of partnershipIdentifying the appropriate TARGET POPULATIONSelecting the RIGHT PARTNERSand theRIGHT MODELof PPPEnsuring ACCOUNTABILITY of private providersEnsure active INVOLVEMENTof the governmentGENERATE SUPPORT of all the key stakeholders through IEC, advocacy and rapport buildingHIGHLIGHT ACHIEVEMENTS of the partnershipsBuild TRUST of all the partners and clients
Initiating Vouchers scheme for MCH care for BPL in Agra
The task was to bring government health sector, private health care providers,NGOs work together on one platformand Policy makers To accept PPP in health as an implementable issue
Key policy makers were:State GovernmentHealth Department Bureaucracy-Principal Secy M&HSenior technocrats at state HQ
Existing Rules were……..It cannot be done!
Principal viewpoints against scheme were…Government-Why should we give government money to private providers?Private providers are profiteers, so why link with them? It has not been done before so how can we do it now?Health department Technocrats-We give services for free! why should they get money for it We will lose our constituency and control on public healthPrivate health care providers-Government is corrupt, we will not work with them
Key supporters wereNONEExcept the funding agency
How we progressed
SignalsWe compiled a data bank onExisting health indicators in the district
Comparative cost of treatment to patients in Govt. vs Private sector
Percentages of un-served BPL patients in the state
Comparative reach of private sector
Increasing inclination of population towards private health careConsultation and Formulation			Step-1Called on the key government representatives to share data
Discussed successful models to remove doubts
Discussed the pro poor spectrum of this scheme
Shared experiences from the other states/developing countries
Tried to convince that this is cost effective				Step-2Called a consultative meeting of all stakeholders at AgraThis included- Bureaucrats, Senior government officials,Nursing home Associations, IMA, Nursing council, Civil Society reps, Senior reform advocates and subject specialistsHad discussions, did documentation, developed models and presented  findings to government with a draft plan recommendationAggressionFollowed up with fostering pressure groups inside state bureaucracy. Also aggressively advocated with senior technocrats in health directorateSent the proposal to Government for ratification

Dr Deoki Nandan

  • 1.
    PUBLIC PRIVATE PARTNERSHIPIN HEALTH SECTOR: MODELS & THE AGRA EXPERIENCEProf. Deoki NandanDirectorNational Institute of Health & Family Welfare, New Delhi
  • 2.
    Public Private Partnershipin HealthDefinition:Public-Private Partnership (PPP) is a collaborative effort, between private and public sector, with clearly identified partnership structures, shared objectives, and specified performance indicators for delivery of a set of health services (MOHFW,GOI)
  • 3.
    Objectives of PublicPrivate Partnership in HealthImproving access to essential services Improving the quality of services availableExchange of expertiseMobilize additional resourcesfor activitiesImprove efficiencyBetter Managementof Health servicesIncreasing scope and scale of services Increasing community ownership of programs.Ensuring optimal utilization of govt. investment and infrastructure
  • 4.
    Economies of ScaleEconomiesof ScaleUtilising Existing CapacityUtilising Existing CapacityCreate SynergyCreate SynergyBetter ServicesBetter ServicesBetter HealthTargeting the PoorTargeting the PoorFlexibility in ActionFlexibility in ActionResource MobilisationResource MobilisationTechnical UpgradationTechnical UpgradationThe Benefits of PPP are
  • 5.
    Models of PublicPrivate Partnerships in HealthSocial Franchising Branded Clinics Contracting Social MarketingBuild, Operate and Transfer Joint Venture Voucher System Donations from individualsPartnerships with Social Clubs and Groups (e.g. Rotary Club)Involvement of Corporate sectorPartnership with Professional AssociationsCapacity Building of Private ProvidersAutonomous InstitutionsMobile Health VansHealth Insurance
  • 6.
    Social Franchising“ Afranchise is a contractual relationship between the franchiser and franchisee in which the franchiser offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade-name, format and/ or procedure owned and controlled by the franchiser and in which the franchisee has or will make a substantial capital investment in his business from his own resources”-International Franchise Association
  • 7.
    The Merrygold Network(USAID, SIFPSA & HLFPPT), Uttar PradeshProvides high quality MCH services at affordable prices. Network comprises of seventy - 20-bed Merrygold Hospitals, 350 - Merrysilver clinics and 10,500 - Merrytarang Ayush partners. The franchisees of this network are being provided training, marketing and quality assurance support
  • 8.
  • 9.
    Positioning on Price/Quality – Trade off between Social goals and Provider Satisfaction
  • 10.
    Understanding motivation ofClients for Accessing ServicesChallenges
  • 11.
    Social Franchising -Criteria for InitiationRevitalising present Government structure is slowResources required to expand public health infrastructure is enormous. High demand but poor supply from government health institutionsAvailability of vast network of private hospitals in places neededWhen objective is to improve access to services on immediate basis.Improve quality standards of private sector and provide high quality care at affordable prices
  • 12.
    Branded ClinicsChain ofClinics – Same OrganisationCater to better-off clients – Market SegmentationMore Income More SustainableEg. Butterfly clinics, titli centres in Bihar,MP
  • 13.
    Example With thesupport of States, an NGO Janani set up a network of more than 21,000 Titli (butterfly) centres and more than 500 Surya (sun) clinics in Bihar, Jharkhand and Madhya Pradesh. Surya clinics are referral clinics run by formally qualified, state-registered doctors in the towns.Titli centres are situated in villages and run by RHPs who have been trained to provide family planning counselling and sell non-clinical contraceptives.
  • 14.
    Branded Clinics –Criteria for initiationNeed to expand services rapidlyNeed to provide high visibility to services availableOffer a package of services selected for the purposeProvide high quality services at comparatively affordable prices
  • 15.
    Contracting – Contracting-inand Contracting-outLegally enforceable ContractDefined Set of healthcare services
  • 16.
  • 17.
  • 18.
    Duration of ServiceProvisioningPrivatePublicRemuneration
  • 19.
    Contracting Out &InExamplesContracting outState Govts. Has contracted out few PHCs in Karnataka, Arunachal Pradesh to by Karuna Trust, VHAI Subcentres in Uttarakhand to NGOsContracting in Human resources by almost all states under NRHM -Radiology, drug stores etc.eg. SMS Hospital, Jaipur -Diet, cleaning, laundry etc. in almost all states
  • 20.
    Criteria for initiatingContracting-outDifficult to manage government health units in remote and inaccessible areas Utilization of services and performance levels are consistently low due to non-availability of staff Aim is to put government health facilities to optimum use Increase responsiveness of government health facilities to local needs through community involvement
  • 21.
    Criteria for initiatingContracting-inImprove efficiency levels of services providedMake management of services more effectiveConserve scarce resources by cutting costs Try out innovative approaches to improve efficiency and effectiveness
  • 22.
    Voucher System/ DemandSide FinancingA voucher is a document that can be exchanged for defined goods or services as a token of payment (tied-cash).Eg: AGRA, Hardwar
  • 23.
    Voucher System –Criteria for InitiationImprove access to services and provide choiceWhere costs act as a major barrier to servicesExisting public healthcare service delivery points do not have provision for all types of servicesInadequate knowledge about the value of services (e.g. importance of antenatal care)Need to generate demand for healthcare servicesPossible to do regular monitoring for ensuring quality standardsTraining of providers and network with the people to ensure proper use of vouchers is possible
  • 24.
    Donations From IndividualsDonationsfrom rich philanthropistsinstitutions Need for simple and transparent mechanisms to encourage donations
  • 25.
    Partnerships with SocialClubs and GroupsSocial Clubs likeRotaryLions’They have been proven to be useful in:Popularising reformed healthcare service delivery outletsIn communication campaigns Management of camps on a large scaleProviding additional resources and technical expertise Advocacy efforts
  • 26.
    Involving the CorporateSectorOrganised Corporate Sector throughCIIFICCIE.g. Indo-Gulf Fertilisers’ Health Initiative and recent Health Conclave by CIIAdoption of Villages for providing primary health care services – TVS -in Karnataka
  • 27.
    Partnerships with ProfessionalAssociationsExpert Pool IAPSM, IPHA
  • 28.
    FOGSI – VandeMatram scheme
  • 29.
    IMA – AaoGaon Chalein
  • 30.
  • 31.
  • 32.
    Mobile Health VansAlreadyimplemented in inaccessible areasComprehensive Health ServicesFixed Journey Plans Public Sector contribution Medical Officers and MedicinesPrivate Sector for Purchase and Management of VansThese vans are useful in:Provide access to services people living in inaccessible terrainMake services available at central location to reduce travel time and costs of clientsUnder NRHM many states have introduced this scheme
  • 33.
    Health Insurance CGHS– Tie up with private hospitals RSBY – Empanelled private hospitals ESIS - Panel of private hospitals & empanelment of private doctors
  • 34.
    Initiating Public PrivatePartnerships in HealthPrioritizing needsEvaluating and analyzing the ground realitiesSelecting the appropriate modelPiloting the modelEvaluating the pilotScaling up
  • 35.
    Initiating PPP inHealth - Vital Components: STRAIGHTIdentifying the SCOPE of partnershipIdentifying the appropriate TARGET POPULATIONSelecting the RIGHT PARTNERSand theRIGHT MODELof PPPEnsuring ACCOUNTABILITY of private providersEnsure active INVOLVEMENTof the governmentGENERATE SUPPORT of all the key stakeholders through IEC, advocacy and rapport buildingHIGHLIGHT ACHIEVEMENTS of the partnershipsBuild TRUST of all the partners and clients
  • 36.
    Initiating Vouchers schemefor MCH care for BPL in Agra
  • 37.
    The task wasto bring government health sector, private health care providers,NGOs work together on one platformand Policy makers To accept PPP in health as an implementable issue
  • 38.
    Key policy makerswere:State GovernmentHealth Department Bureaucracy-Principal Secy M&HSenior technocrats at state HQ
  • 39.
  • 40.
    Principal viewpoints againstscheme were…Government-Why should we give government money to private providers?Private providers are profiteers, so why link with them? It has not been done before so how can we do it now?Health department Technocrats-We give services for free! why should they get money for it We will lose our constituency and control on public healthPrivate health care providers-Government is corrupt, we will not work with them
  • 41.
  • 42.
  • 43.
    SignalsWe compiled adata bank onExisting health indicators in the district
  • 44.
    Comparative cost oftreatment to patients in Govt. vs Private sector
  • 45.
    Percentages of un-servedBPL patients in the state
  • 46.
    Comparative reach ofprivate sector
  • 47.
    Increasing inclination ofpopulation towards private health careConsultation and Formulation Step-1Called on the key government representatives to share data
  • 48.
  • 49.
    Discussed the propoor spectrum of this scheme
  • 50.
    Shared experiences fromthe other states/developing countries
  • 51.
    Tried to convincethat this is cost effective Step-2Called a consultative meeting of all stakeholders at AgraThis included- Bureaucrats, Senior government officials,Nursing home Associations, IMA, Nursing council, Civil Society reps, Senior reform advocates and subject specialistsHad discussions, did documentation, developed models and presented findings to government with a draft plan recommendationAggressionFollowed up with fostering pressure groups inside state bureaucracy. Also aggressively advocated with senior technocrats in health directorateSent the proposal to Government for ratification
  • 52.
    Confronted objections throughevidence in handMechanism Proposed was…SN MEDICAL COLLEGE AGRA WITH REPRESENTATION OF GOVT,NGOs,NURSING HOMES ANDDISTRICT ADMINISTRATION AS VOUCHER MANAGERNGOs AS DISTRIBUTORS AND MOBILIZING PARTYSELECT 5-10 BED NURSING HOMES AS SERVICE PROVIDERS
  • 53.
    Government said noto SNMC as voucher managersAnd proposed CMO in place to retain controlWe said OKGovernment asked: at what cost NHs Will give servicesWe said cheap and not more than RGI figuresGovernment asked about NH accreditation criteriaWe said that we will developGovernment asked the spread of Pvt facilities in AgraWe said we will survey
  • 54.
    WE REDEVELOPED THEMANAGEMENT STRUCTURE WITH CMO AS LEAD WE SURVEYED AND MAPPED NHs in AGRA IN 3 MONTHWE NEGOTIATED COSTS WITH NHs IN JOINT CONSULTATIONS AND REACHED THE BEST RATES IN INDIA IN 1 MONTHWE DEVELOPED ACCREDITATION CRITERIA FOR 5-10 BED NHs IN 2 MONTHSWE DEVELOPED FIELD DEFINITIONS OF ALL MCH CLINICAL SERVICES TO ENSURE UNIFORM STANDARDS AND QUALITYIN 2 MONTHS
  • 55.
    ImplementationState bureaucracy wasnow happy because they were leading the expansionNursing homes were happy on the proposed fund dispersal mechanism (advances ) and assured increase in patient numbersHealth technocrats were happy that they retained powerPoliticians were happy as the scheme reaching their poor electorateNGOs were happy on services they could do in the areas they work
  • 56.
    THE PROPOSAL WASSENT TO CHIEF SECRETARY FOR RATIFICATION BY CABINET
  • 57.
  • 58.
    Evaluation & Feedback:3months later a review was done and additional grants were provided on field requirements, including refresher trainings on clinical field definitionsMedical audits for quality assurance, financial audits for transparency conducted after 6 months Additional NHs contacted and accredited
  • 59.
    Scheme expanded totwo more Districts (One by UPHSDP)
  • 60.
    PPP is nowan official government policy for all sectors in UPPPP is Likely Democracy- For the People- By the People-Of the People
  • 61.
  • 62.
    Framework for DevelopingProblemProfile of PartnersProcess of Building a partnershipProfit – Mutual BenefitPhase – start small & buildProliferate –Grow, Expand, & SustainPriorities & Preferred group
  • 63.
    Framework for DevelopingPPPPolicing – Mechanism of Monitoring & TransparencyPolitics – Governance, Administration, People’s auditProtection/proof: A security system Price: A cost share in terms of money/kind
  • 64.
    Framework for DevelopingProfessionalNetworkPlatform Prize: Acknowledgement/recognition
  • 65.
    PPP is arequired PUNCH
  • 66.