Public-Private Partnerships and Its Reflections to the Health Sector

Public-Private Partnerships and Its Reflections to the Health Sector

Yeter Demir Uslu (Istanbul Medipol University, Turkey) and Emre Yılmaz (Istanbul Medipol University, Turkey)
DOI: 10.4018/978-1-7998-2329-2.ch013
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The purpose of this study is to define the concept of public-private cooperation, to talk about its advantages and disadvantages and to examine its reflections on the health sector. In this context, the main features of the Public Private Partnership and the financing models applied throughout the world have been mentioned by making extensive literature review. In addition to this, the effects of public-private cooperation on health sector practices are discussed and the benefit of the synergy created as a result of cooperation is emphasized. In the literature review, the creation of Public Private Partnerships for various purposes together with various financing models, the services public and private sector provide for a common purpose, the risk sharing resulting from all these factors have been discussed. It is stated that the provision of compulsory public services by the government in cooperation with the private sector adds value to projects both in terms of innovation and time cost.
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The term PPP emerged in the 1950s and began to be used in the United States, education and other sectors as the joint undertaking of public and private sectors to finance the services to be provided (Atasever, 2018). Up to the end of the 90s, about ten countries are using this model, while today, it is known that most states use it (Boz, 2013). Among the fundamental aims of the state is to provide the services that the public needs. The services to be provided include different services such as hospitals, roads, schools, infrastructure services, and prisons. Debates on how and how each service item will be made available to the public, and how to manage it effectively and efficiently, have existed from the past to the present (Teker, 2008).

The Public-Private Partnership (PPP) model can be defined as a model that undertakes the financing of large-scale infrastructure activities and projects, collaborates with the public and private sectors to provide public service, and shares the risks that may occur in all processes in order to ensure public service provision and sustainability (Yaşar, 2015). The PPP model in the health sector has a history of nearly a quarter-century. There are two main reasons why the PPP model is preferred. These are to utilize the financing capacity of the private sector and to benefit from the private sector's operational ability and competencies in the organization of public services (OECD, 2010).

Within the scope of the globalization process, organizations and administrations in all sectors have become more affected by the dynamics experienced in their internal and external environments and have grown sensitive systems and have tended to direct their strategies in this direction. One of the essential concepts that stand out at this point is the managerial and process sustainability. Considering that the impacts of both public and private sectors are equal in the structuring of the City Hospital, where the strategic importance of sustainability concept is on the agenda again, it is inevitable that both areas will come together and be evaluated within the scope of a strategic partnership in terms of both the management and the sustainability of the enterprise. In this context, it is critical to determine the strategic objectives of hospitals, to ensure that the enterprise allocates resources correctly and effectively in the vital planning phase, to understand the priorities and preferences of all concerned, to demonstrate the transfer of responsibilities and accountability within the framework of the results.

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