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PPP
IFC Helps AP Expand Affordable Healthcare Services through PPPs
The Government will pay for all patients referred by hospitals
at rates quoted by the winning bidder
Paolo M Martelli |
IFC, a member of the World Bank Group, has successfully completed
its advisory work with the state of Andhra Pradesh to help four public hospitals
offer advanced diagnostics services to low and middle-income people.
As lead transaction advisor, IFC extended its global expertise
for structuring and implementing public-private partnership transactions to
assist the Government on this project. IFC was appointed by the state Government
last November to offer advice on upgrading diagnostic services at medical colleges
in Kakinada, Kurnool, Vishakhapatnam, and Warangal through private participation.
The project has been awarded to a consortium of Wipro-GE
Healthcare Pvt Ltd and Medall Healthcare Pvt Ltd after a competitive bidding
process. The bid-winning consortium will invest in refurbishing and building
facilities, installing equipments, and providing services. The Government will
pay for all patients referred by hospitals at rates quoted by the winning bidder.
These rates are highly discounted to market rates for similar services.
"IFC's advice and global experience is helping us set
in motion a larger effort to leverage private sector for improving public health
systems. With IFC's guidance we have been able to conclude the bidding process
in a record time frame," said J Satyanarayana, Special Chief Secretary
for Health, Medical and Family Welfare, Government of Andhra Pradesh.
The project is an important step in the state Government's
vision to strengthen public health service delivery to low and middle income
groups. Paolo M Martelli, IFC Regional Director for South Asia, said, "Making
high-quality healthcare services affordable and accessible for underserved groups
is top priority for India. PPPs offer an avenue to achieve this objective and
IFC is delighted to be able to contribute toward this goal." Through its
first PPP transaction advisory health-sector project in India, IFC is supporting
development of a comprehensive policy framework to improve availability of quality
and affordable healthcare.
Wipro-GE is a joint venture between Wipro Limited and General Electric Company,
a global leader in manufacturing of medical equipments. GE Healthcare has partnered
with public entities as technology provider in over 100 similar projects. Medall
runs advanced diagnostic services in several Indian cities. The concession agreement
was signed between the consortium, the Government of Andhra Pradesh, and four
teaching hospitals on July 16, 2010, in the presence of Sudarshan Reddy, the
Andhra Pradesh Minister of Medical Education, in Hyderabad.
EH News Bureau
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