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Public Private Partnership in Health Care
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David Saganelidze: Hospital Sector Development is a Project of the Century for Georgia

The tender that the Partnership Fund announced for rehabilitating three hospitals in Tbilisi has reached its final phase. AlphaMedic Austrian company has submitted the best proposal. This consortium unites such experienced companies as FMK, Keppie, The Health Partnership, FESP.

Who are members of AlphaMedic Consortium and what is their experience?

Keppie Architects, The Health Partnership, MFK, FESP, members of the consortium, are the world’s leading experts in the field of engineering, functional planning and management of clinics. They have implemented many projects in various countries of the world under the PPP model. For instance, Keppie British company has multiyear experience of operation under the PPP model. And the British model is one of the best samples in terms of planning and developing the hospital sector.

PPP model develops the state to business interaction format for implementing and improving politically and socially relevant projects.

The international experience proves that target-oriented cooperation between the state and a business sector is a mandatory component for the market economy development. 

The Partnership Fund as a state instrument is a wonderful example of cooperation between the private and state sectors and many successful projects carried out by the Foundation proves this consideration. The Authorities are implementing large-scale projects in the hospital and pharmaceutical sectors through the Partnership Fund.

Similar approaches radically change the government policy that is directed to improving the hospital and pharmaceutical sectors. 

The medical clinics development project calls for rehabilitating the Republican Hospital, Children Infection Center and the Oncology Scientific Center. The project is expected to become Georgia’s undertaking of the ongoing century thanks to the investment volume, technological achievements and professional staff. 

At the BOAO international forum you met with famous businessman Alexander Mashkevich, who is making major investments in the health sector in Georgia. Have you discussed Georgia’s healthcare projects? 

At the BOAO international forum I conducted important meeting with Mr. Alexamndre Mashkevich, who was representing the Kazakh Party at the Asian Forum. Two companies of Alexander Mashkevich have engaged in reformation of the Georgian hospital sector. At the meeting we discussed the relevant issues of the pharmaceutical plant and new hospital center and availability of involvement of various financial institutions in the projects. 

The projects implemented in the pharmaceutical sector have also reaped first positive effect and medication prices are declining in Georgia. Appearance of Humanity Georgia resulted in lowering medication prices in the Georgian market and the Georgian state has saved tens of millions of GEL in the field of financing medications in the insurance sector. 

Many preparations have gone cheaper and the positive effect is seen in the society too. I believe the project implemented through involvement of the Partnership Fund have justified. The second stage of the project calls for constructing a pharmaceutical plant. As a result, medication tariffs will go cheaper.

We have achieved our goal. Medication prices are decreasing and none of the previous governments could attain similar results. Therefore, the government plans to carry out similar changes in the hospital sector too. 

What factors have made AlphaMedic Consortium a special one  among other competitors? When will you undertake cooperation with the company? 

By the Government’s initiative, jointly with Global Alliance consulting company, the Partnership Fund has carried out the feasibility studies for development of state-owned medical clinics. Based on this research, as part of the healthcare system reformation program, the government announced a tender. The Partnership Fund was also involved in the tender commission.

Three companies had submitted an interest expression for implementing the medical clinics development project. And only AlphaMedic consortium was found to have submitted valuable and acceptable tender proposal. The Government has spent much time to explore the company proposal in details. The clinics development project discussion process still continues. We are examining the proposal in details and this process takes much time. 

Under the tender conditions, the winner company becomes obliged, in the format of public and private partnership, to draw investments and implement medical clinic development concept, as well as to develop the network of outpatient clinics with high technologies and cutting-edge medical equipment. 

What mechanisms will you employ to carry out monitoring over the winner company performance?

The monitoring will be carried out at all stages of the project implementation and all information will be publicized.

What does the PPP model imply for the hospital sector development in Georgia? 

This is a genuine breakthrough for Georgia.  The hospital sector development under the PPP model will bring positive effects. This is the project of the century. The PPP is a cost-efficient project that calls for managing all available risks.

The developing countries have considerably improved the healthcare system through public to private partnership format. The developed countries of the world employ this model and the time has come for Georgia to take this significant step in the healthcare sector.