PPP investments in health sector not keeping up with demand

14:16 | 26/06/2019 Economy

(VEN) - Recent years have seen a wave of investments in the health sector, but it has not yet met the demand. Therefore, more incentives are needed to promote investment attraction in public-private partnership (PPP) projects in the health sector.

ppp investments in health sector not keeping up with demand

According to the Ministry of Health, demand for all forms of healthcare in Vietnam is growing, resulting in the overloading of public hospitals, as well as strong development of private clinics and hospitals, and creating favorable conditions for the development of PPP projects.

Tang Chi Thuong, deputy director of the Ho Chi Minh City Department of Health, said the country has encouraged investors to carry out PPP projects in the health sector, but procedures for the model should be simplified to optimize project capital and efficiency, while ensuring quality of medical check-ups and treatment.

Currently, Vietnam’s health system is confused between the concepts of the medical examination and treatment market and the state budget payment for those who cannot take care of themselves like the poor, or for children under six years old.

One of the models for reference is the capital allocation model. Accordingly, public hospitals receive a state budget and take care for the poor, retirees, and policy beneficiaries. Meanwhile, private hospitals perform medical services for those of working age who pay health insurance.

Another model is that the state does not own and operate hospitals. The entire population pays for the cost of medical examination and treatment through health insurance.

Caryn Bredenkamp, senior economist at the World Bank, recommended utilizing the four letters of PPPP (public-private partnership for people) to raise people’s awareness of the importance of this model and thus preventing any wrong directions in development of related projects.

The state should add more incentives in order to promote investment in PPP projects in the health sector, in addition to maintaining the policy of land rent exemptions for health projects.

Ngoc Thao