• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Partnerships can boost hospitals

Sep 26 2012 16:35

Related Articles

Robust performance buoys Netcare

Netcare profit up 16%, outlook cautious

Netcare pledges to do more on BEE

Deadlock as Netcare nurses demand 13%

Third union declares Netcare dispute

Netcare to report 26% rise in earnings

Cape Town - There was no reason why private hospitals could not provide services to public sector patients through innovative public private partnerships (PPPs), said Netcare [JSE:NTC] CEO Dr Richard Friedland.

Speaking at the Hospital Association of South Africa conference in Cape Town last week, Friedland said PPPs involve a balance between risk and reward across a spectrum of engagement from leasing, management and construction of facilities to the provision of clinical services and episodes of care.

“The ideal model is a more adventurous model of integration,” said Friedland.

Netcare operates an 18-year PPP in Lesotho where the Lesotho government is the purchaser of services, while Netcare is responsible for the full spectrum of clinical care.

“It is a fully integrated model and is a highly structured, ordered and efficient system.”

Friedland said the PPP had enabled the hospital to see more than 400 000 outpatients and more than 23 000 inpatients in the 12 months since it opened in October last year.

Nectare also provides primary and secondary services in the area, with a primary care clinic situated at the entrance which acts as a gatekeeper – patients need a referral from the primary healthcare centre to be admitted to hospital. 

He added that the most critical factor in ensuring long-term sustainability is ongoing training and skills transfer to local staff. External monitoring and technical support also provide ongoing accountability and credibility. 

“With PPPs you need extensive stakeholder engagement, contracts need to be robust enough to survive management changes and outcomes must be measurable,” said Friedland. 

“Payment mechanisms also need to be well defined.”

He added that contracts of longer duration produce a more sustainable impact. 

Friedland said that in South Africa, the UK-based Any Qualified Provider concept of service provision could be adapted and implemented. 

This was based on accreditation of providers and the department of health’s core standards could provide the basis for this process. Contracting and defined outcomes would require development.

Friedland said it was similar to a mixed-price airline model, where economy and business class passengers were serviced together. 

“They may be seated in different seats and experience different levels of support such as meals and seating, but they have the same pilot, assistants and ultimately reach the same destination.”

“The Lesotho PPP model is affordable and workable in South Africa and developing countries,” said Friedland. 

“But it would require not only legislative and regulatory changes in terms of employment of doctors, but also a philosophical mindshift.”

* Follow Fin24 on TwitterFacebookGoogle+ and Pinterest

netcare  |  medical schemes



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote