Public Private Partnering  Taking UAE Healthcare ahead.   Gururaj Rai & Dr.Kishan Pakkal Zulekha Healthcare Group Hospital Build Middle East  ,Dubai Investment & Finance In Healthcare   3 rd  June 2010
Objectives 1) Definition of the terms     2) Global issues in Public Hospitals     3) UAE healthcare Profile     4) Issues for patient migration from UAE,     5) Options for Private participation in Public Hospitals  6) Case study -Success stories of PPP model
Definition Public-private partnership in health services involves the government encouraging private sector to participate in the delivery of public services.   This also leads to the situation where the government mobilizes private sector sources of funds to finance health care services.
UAE –a welfare state A model in which the state assumes primary responsibility for the welfare of its citizens.  All Emirati citizens get free education ,health care, Housing benefits and subsidized utilities.  Expatriates pay a subsidized fee in public hospitals.
Global issues in Public Hospitals A welfare state Round Up  Healthcare  - manpower and expertise –  not easily available  comes  at a  cost  changing demographic and disease trends,  Increasing cost of pharmaceuticals and technology  Constraints on public Healthcare Budgets
Public hospitals  are  forced to cut costs while trying  to  ensure  free / subsidized  quality healthcare to all
Govt. Strategies to Combat the issue narrowing the basic package of services available to all citizens, linking hospital funding to outputs and efficiency, amalgamating hospitals into networks,  Some governments have also turned to public-private partnerships to bring private sector efficiency
UAE – Healthcare Market  Source: Medical Markets Fact book - 2009 20 4 Dubai Health Authority PHC Hospitals Regulators NA 35 Private Sector Field clinics 3 Army Directorate 40 12 HAAD - SEHA 88 22 Ministry of Health
Population -5.6million [2009 census];  ·  The number of beds per 1,000 people in  UAE  is 2, still below the international average of 3 ·   Private healthcare providers in  UAE  receives 70% of their income from insured patients.  Rapid shift in Health insurance due to Legislation Source: WHO - Business Monitor International
3 drivers that will dramatically increase health-care demand in the region:  population growth, Increasing no. of aging population unique health-risk factor Source: Mckinsey survey report
Projected Burden of disease
UAE – 160% demand for Hosp beds by 2025
Overview  Medical Tourism Market  -  Expense on Overseas Medical Treatment of UAE Nationals -2 billion USD  every year Thailand recieves-90,000 Emirati pts every year,  In 2007, Singapore Hospitals received 40 million USD on medical tourism from UAE alone Source: Arabian Business  Regional Health Systems Observatory- EMRO
Why is UAE Losing Patients to Medical Tourism? perception towards The general quality of health services in UAE – 57 % of UAE Nationals seek medical treatment abroad.-  2009 survey by YouGov agency,   Source: Arabian Business
Nationals have more trust in Western or S.Asian Healthcare. Heavy dependence on Govt. for Abroad treatment. Key Issues Source: Arabian Business/ Gulfnews
Challenges Retaining  Quality Human Capital  – Doctors, Nurses and Technicians. Healthcare Legislation Non Uniform investment in Healthcare
Case Study Over 60 % of people in the UAE are obese or overweight –Resulting in Heart/Diabetic, Renal issues Source : Abudabhi Congress
Source: Research Data – Zulekha Hospital Dialysis Services- Dubai & Sharjah * Pt  Figures taken on Approximation 50 7 Private Sector 1200 16 Sheikh Khalifa Hospital, Ajman 1500 17 AL Qasssimi Hospital, Sharjah Approx pts*/PM Units Providers - Renal Dialysis- Shj & Ajman 150 20 Private Sector 2000 30 Dubai Hospital Approx pts*/PM Units Providers -Renal Dialysis- Dubai
Population that rely on Govt for Dialysis service is at large. Huge Expat waiting time in Govt Facility –  High cost of Treatment in Pvt Sector Pvt Sector – Capacity Under utilised Pvt Sector –Facing problem of retaining Medical Professionals Dialysis Services- Case study
Embark Case load Sharing  Subsidized treatment- at Pvt facilities Govt. to monitor Quality How Pvt Sector can help
Options for Private  participation in  Public Hospitals
Options for PPP Manages public hospital for public patients and contracts with private wing for sharing joint costs, staff, and equipment. Operates private wing (for private patients). May provide only accommodation services or clinical services as well. Co-location of private wing within or beside public hospital. Public Responsibility Pvt Responsibility Options
Options for PPP Provides all clinical services (and staff) and hospital management. Provides non clinical services (cleaning, catering, laundry, security, building maintenance) and employs staff for these services. non clinical support services Public Responsibility Pvt Responsibility Options
Options for PPP Manages hospital and provides clinical services. Provides clinical support services such as radiology and laboratory services. clinical support services Public Responsibility Pvt Responsibility Options
Options for PPP Public Responsibility Pvt Responsibility Options Manages hospital and provides most clinical services. Provides specialized clinical services (such as lithotripsy) or routine services. Outsourcing specialized clinical services
Options for PPP Public Responsibility Pvt Responsibility Options pays private operator for services provided, and monitors and regulates services and contract compliance. Manages public hospital under contract with government provides clinical and non clinical for services provided.  Private management of public hospital
Source : WHO Franchising DBFO( design, Build, finance, operate) BOO (build, own, operate) BOOT (build, own, operate, transfer) BOLB (buy, own, lease back) Alzira model Models of PPP in Hospital
SEHA – PPP Model
Limitations  of PPP Can lead to unethical means to maximize profit Retaining Human Capital Labour and Financial issues Compromise on Quality in the long run
Conclusion PPP can provide innovative ways to control costs and improve service,  provided there is Implementation of sound regulatory arrangements Adherence to Commitment by both parties
Case studies Success Stories KSA India
Saudi Arabia
Saudi Arabia  A new entity established,  MOH hospitals assets to be transferred to this new organization  Entity works on to prepare PPP  Source: SAGIA & Booz Co.
Source – Booz & Co.
India
Sri Sathya Sai Medical Trust- Bangalore
52.26 acres  free land given by Govt.   Waiver of taxes  subsidies in utilities. Exemption of customs duties for imports of equipments High end technology deployment from Principal suppliers Model of Volunteering developed – Doctors,Public
Hospital offers totally free of charge service in 5 years golden years of service,  over 6,000 cardiac operations, more than 5,500 neuro surgeries, Totally free treatment including medicines 3.5 lakh outpatient consultations  Source: Radiosai
Thank You A panoramic view of SSSIHMS ,Bangalore

Public Private Partnering - Taking UAE Healthcare ahead

  • 1.
    Public Private Partnering Taking UAE Healthcare ahead. Gururaj Rai & Dr.Kishan Pakkal Zulekha Healthcare Group Hospital Build Middle East ,Dubai Investment & Finance In Healthcare 3 rd June 2010
  • 2.
    Objectives 1) Definitionof the terms   2) Global issues in Public Hospitals   3) UAE healthcare Profile   4) Issues for patient migration from UAE,   5) Options for Private participation in Public Hospitals 6) Case study -Success stories of PPP model
  • 3.
    Definition Public-private partnershipin health services involves the government encouraging private sector to participate in the delivery of public services. This also leads to the situation where the government mobilizes private sector sources of funds to finance health care services.
  • 4.
    UAE –a welfarestate A model in which the state assumes primary responsibility for the welfare of its citizens. All Emirati citizens get free education ,health care, Housing benefits and subsidized utilities. Expatriates pay a subsidized fee in public hospitals.
  • 5.
    Global issues inPublic Hospitals A welfare state Round Up Healthcare - manpower and expertise – not easily available comes at a cost changing demographic and disease trends, Increasing cost of pharmaceuticals and technology Constraints on public Healthcare Budgets
  • 6.
    Public hospitals are forced to cut costs while trying to ensure free / subsidized quality healthcare to all
  • 7.
    Govt. Strategies toCombat the issue narrowing the basic package of services available to all citizens, linking hospital funding to outputs and efficiency, amalgamating hospitals into networks, Some governments have also turned to public-private partnerships to bring private sector efficiency
  • 8.
    UAE – HealthcareMarket Source: Medical Markets Fact book - 2009 20 4 Dubai Health Authority PHC Hospitals Regulators NA 35 Private Sector Field clinics 3 Army Directorate 40 12 HAAD - SEHA 88 22 Ministry of Health
  • 9.
    Population -5.6million [2009 census];  ·  Thenumber of beds per 1,000 people in UAE is 2, still below the international average of 3 ·   Private healthcare providers in UAE receives 70% of their income from insured patients. Rapid shift in Health insurance due to Legislation Source: WHO - Business Monitor International
  • 10.
    3 drivers thatwill dramatically increase health-care demand in the region: population growth, Increasing no. of aging population unique health-risk factor Source: Mckinsey survey report
  • 11.
  • 12.
    UAE – 160%demand for Hosp beds by 2025
  • 13.
    Overview MedicalTourism Market - Expense on Overseas Medical Treatment of UAE Nationals -2 billion USD every year Thailand recieves-90,000 Emirati pts every year, In 2007, Singapore Hospitals received 40 million USD on medical tourism from UAE alone Source: Arabian Business Regional Health Systems Observatory- EMRO
  • 14.
    Why is UAELosing Patients to Medical Tourism? perception towards The general quality of health services in UAE – 57 % of UAE Nationals seek medical treatment abroad.- 2009 survey by YouGov agency, Source: Arabian Business
  • 15.
    Nationals have moretrust in Western or S.Asian Healthcare. Heavy dependence on Govt. for Abroad treatment. Key Issues Source: Arabian Business/ Gulfnews
  • 16.
    Challenges Retaining Quality Human Capital – Doctors, Nurses and Technicians. Healthcare Legislation Non Uniform investment in Healthcare
  • 17.
    Case Study Over60 % of people in the UAE are obese or overweight –Resulting in Heart/Diabetic, Renal issues Source : Abudabhi Congress
  • 18.
    Source: Research Data– Zulekha Hospital Dialysis Services- Dubai & Sharjah * Pt Figures taken on Approximation 50 7 Private Sector 1200 16 Sheikh Khalifa Hospital, Ajman 1500 17 AL Qasssimi Hospital, Sharjah Approx pts*/PM Units Providers - Renal Dialysis- Shj & Ajman 150 20 Private Sector 2000 30 Dubai Hospital Approx pts*/PM Units Providers -Renal Dialysis- Dubai
  • 19.
    Population that relyon Govt for Dialysis service is at large. Huge Expat waiting time in Govt Facility – High cost of Treatment in Pvt Sector Pvt Sector – Capacity Under utilised Pvt Sector –Facing problem of retaining Medical Professionals Dialysis Services- Case study
  • 20.
    Embark Case loadSharing Subsidized treatment- at Pvt facilities Govt. to monitor Quality How Pvt Sector can help
  • 21.
    Options for Private participation in Public Hospitals
  • 22.
    Options for PPPManages public hospital for public patients and contracts with private wing for sharing joint costs, staff, and equipment. Operates private wing (for private patients). May provide only accommodation services or clinical services as well. Co-location of private wing within or beside public hospital. Public Responsibility Pvt Responsibility Options
  • 23.
    Options for PPPProvides all clinical services (and staff) and hospital management. Provides non clinical services (cleaning, catering, laundry, security, building maintenance) and employs staff for these services. non clinical support services Public Responsibility Pvt Responsibility Options
  • 24.
    Options for PPPManages hospital and provides clinical services. Provides clinical support services such as radiology and laboratory services. clinical support services Public Responsibility Pvt Responsibility Options
  • 25.
    Options for PPPPublic Responsibility Pvt Responsibility Options Manages hospital and provides most clinical services. Provides specialized clinical services (such as lithotripsy) or routine services. Outsourcing specialized clinical services
  • 26.
    Options for PPPPublic Responsibility Pvt Responsibility Options pays private operator for services provided, and monitors and regulates services and contract compliance. Manages public hospital under contract with government provides clinical and non clinical for services provided. Private management of public hospital
  • 27.
    Source : WHOFranchising DBFO( design, Build, finance, operate) BOO (build, own, operate) BOOT (build, own, operate, transfer) BOLB (buy, own, lease back) Alzira model Models of PPP in Hospital
  • 28.
  • 29.
    Limitations ofPPP Can lead to unethical means to maximize profit Retaining Human Capital Labour and Financial issues Compromise on Quality in the long run
  • 30.
    Conclusion PPP canprovide innovative ways to control costs and improve service, provided there is Implementation of sound regulatory arrangements Adherence to Commitment by both parties
  • 31.
    Case studies SuccessStories KSA India
  • 32.
  • 33.
    Saudi Arabia A new entity established, MOH hospitals assets to be transferred to this new organization Entity works on to prepare PPP Source: SAGIA & Booz Co.
  • 34.
  • 35.
  • 36.
    Sri Sathya SaiMedical Trust- Bangalore
  • 37.
    52.26 acres free land given by Govt. Waiver of taxes subsidies in utilities. Exemption of customs duties for imports of equipments High end technology deployment from Principal suppliers Model of Volunteering developed – Doctors,Public
  • 38.
    Hospital offers totallyfree of charge service in 5 years golden years of service, over 6,000 cardiac operations, more than 5,500 neuro surgeries, Totally free treatment including medicines 3.5 lakh outpatient consultations Source: Radiosai
  • 39.
    Thank You Apanoramic view of SSSIHMS ,Bangalore