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Hospital Sector Development to Reduce Outflow of Patients to Foreign Hospitals

The Austrian company AlphaMedic has reached the final stage of the tender announced by the Partnership Fund for the rehabilitation of three hospitals in Tbilisi. AlphaMedic Consortium unites such experienced companies as FMK, Keppie, The Health Partnership, and FESP. As discussed in previous articles in Georgia Today, the Authorities plan to carry out the management of the mentioned three clinics using the public–private partnership (PPP) model.

We spoke to economic expert Solomon Pavliashvili.

“The Authorities and the private sector will be partners, but the management will not be public. The legal entity of private law and the government will be represented by their stakes. This is a form of co-participation through which the state owns a stake. According to my information, the election stake must be owned by a private company.

“The Partnership Fund has already implemented similar projects, for example, Rixos in Borjomi. In this case, the government acts as a partner and it is not decisive whether the partner is represented by the government or a private company. The form of management will be either a limited liability company or a joint stock company. The project will be implemented through co-participation. I think it would be better for a private company to fully own this or that enterprise, but in this specific case, the government is applying stimulating mechanisms, an acceptable approach in this case, as this is the mission of the Partnership Fund,” Pavliashvili said.

“I believe medical tourism is one of the most progressive directions in our country and it would be excellent if the Authorities promote its development. The three hospitals will be equipped with modern technology, the staff will be retrained and the service quality will increase. If all these plans are fulfilled adequately, Georgia will be able to develop medical tourism and the number of patients leaving for foreign hospitals will decrease if high-quality medical services are available at affordable prices,” Pavliashvili concluded.

Keti Didebulidze