Private Public Partnership (PPP) in Hospitals: Australia & Brazil Case Studies

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Benjamin W


Date added:

September 9, 2017








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The government selected a private operator to design, build, own, and operate a new, 153-bed hospital under a 15-year contract. The private provider receives from the government annual payments based on the forecast mix of clinical patients (with funding capped at a specified number of patients) plus a small block grant to cover such costs as teaching...
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Capital costs for the new hospital came in 20 percent below those for public sector comparators, and the hospital provides clinical services at lower cost than government-operated hospitals. Moreover, all performance targets have been met, patient volumes increased by 30 percent in the first year. BRAZIL The Bahia State Government entered into contracts with private firms for the management of 12 new public hospitals, constructed and financed by the government...
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