Introducing PPP procedures in healthcare sector will create conditions for infrastructure development

Today 9 healthcare facilities in different regions are transferred into trust management. Asian Development Bank accompanies implementing 4 projects of PPP in medicine of Kazakhstan. The Minister of Healthcare Elzhan Birtanov reported at the press conference following the results of the session of the Government of RK.

“Today it is very important to attract private investments in healthcare system. As the healthcare is that branch which constantly demands investment”, – E.Birtanov noted.

So, despite of active construction of healthcare facilities and increasing budgetary revenues in the branch every year, infrastructure deficiency in RK healthcare sector still remains high. Over 60% of healthcare organizations are located in premises which were built more than 30 years ago, half of them are located in non-standard buildings, many healthcare organizations aren"t provided with necessary equipment. This, according to the Minister, leads to irrational use of funds for maintenance of outdated buildings, expenses of management of hospitals, low rates of introduction of modern technologies that affects the quality of rendered services.

Development of infrastructure and attraction of modern technologies in medical branch will require considerable budgetary costs. In this situation the PPP will become the key instrument of attraction of necessary financial means.

The Ministry of Healthcare together with akimats has prepared the list of the objects proposed private investors for construction, privatization and trust management. Two directions are proposed for investors. Within the first direction a private investor builds healthcare facilities at own expense, on the basis of the long-term contract recovers all the expenses and gains a profit connected with activity during the operation term. Within the second direction for reduction of investment loading, the Ministry of Healthcare proposes to take in management of existing, but low effective state objects, proceeding from criteria of quality of operation of these organizations. In both directions local executive agencies work actively. Already 9 objects in different regions are transferred into trust management.

“We consider that the private sector has opportunities to invest in major repairs, re-equipment, purchase of sanitary transport and higher motivation to work as today"s funding is based on the end result. In the future it will also be assessed on the end result in the system of Compulsory Social Health Insurance”, – the Minister said.

The agreement on preparation of 4 pilot projects on PPP in the area of polyclinic help is signed with the Asian Development Bank. ABR in 2016 has already allocated over "200 thousand for preparation of pilot projects. In 2017 the bank is ready to allocate over "500 thousand for this sphere.