Home / Healthcare / PPP Model Enables to Improve Service Quality and Lower Medication Prices
Generic Drugs

PPP Model Enables to Improve Service Quality and Lower Medication Prices

AlphaMedic Consortium has got through the final stage of the tender announced by the Partnership Fund in the Healthcare Sector.

The Consortium unites such companies as FMK, Keppie, The Health Partnership, FESP. The tender will be completed after the Partnership Fund and the Consortium have signed an agreement. The management of three hospitals will be carried out under the model of partnership between public and private sectors (PPP).

Tina Turdziladze, head of the Healthcare Experts Club, overviews the mentioned issue:

“The quality of healthcare services, prices and, in general, trust to the system remain as unresolved problems in our country. In the developed countries with guaranteed quality and reliable system only one problem remains – the price. This signifies all countries keep seeking a new model of economic and social efficiency.

Before the reforms, the Georgian Health System used to apply administrative methods. After the commencement of reforms, the Healthcare system applies a mechanism of absolutization  of economic management methods and this is not sufficient”, Tina Turdziladze noted.

The PPP model is widely applied in many countries worldwide in order to improve the quality of services and lower medication prices.

“Many countries have chosen the Public Private Partnership (PPP) model for efficient development of healthcare system and achieving high economic and social efficiency. The model is widely applied worldwide to ensure optimal combination of administrative and economic methods of management. The PPP model calls for transmitting the management to a private company for providing high-quality services and certain functions are privatized. In this scheme, the state, on the one hand, receives services and, on the other hand, determines the agreement terms, including the quality and prices of healthcare services.

This is the essence of the PPP concept to improve the quality of services and lower medication prices through high-level management of the company and quick investments. I believe this model has been properly chosen for social orientation of the market economy”, Tina Turdziladze noted.

As reported, this tender refers to three hospitals in Tbilisi: Republican Hospital, Children Infectious Hospitals and Oncology Hospital.