Kenya Private Sector Alliance

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1 Kenya Private Sector Alliance KENYA ASSOCIATION OF PHYSICIANS CPD SYMPOSIUM S.M.A.R.T. CLINICAL PRACTICE IN THE PRIVATE SECTOR SATURDAY 13TH SEPTEMBER 2008 PANAFRIC HOTEL, NAIROBI Dr Amit N. Thakker Director Avenue Group of Companies CEO UniCare Solutions Innovation Africa Kenya Healthcare Federation Republican Club of Kenya Kenya Association of Healthcare Organisation Consortium of National Health Research (Kenya) Amini Management (EA) Ltd (Part of the Momentum Group) Kenya Healthcare Federation

2 Public Health Sector/Private Health Sector Collaboration-PPP (WHO, 1997 The Jakarta Charter). To address emerging threats to health, new forms of action are needed. There is a clear need to break through traditional boundaries within government sectors, between governmental and nongovernmental organizations, and between the public and private sectors. Cooperation is essential; this requires the creation of new partnerships for health, on an equal footing, between the different sectors at all levels of governance in societies

3 Public Health Sector/Private Health Sector Collaboration- PPP There can be a wide spectrum of arrangements between the public and private sector to provide public services. At one extreme, government plays the role of a provider. At the other extreme, services are fully privatized and the role of government is limited to that of a regulator.

4 PPP What is it? United Nations Development Program (UNDP), - definition of PPPs Includes agreement frameworks, traditional contracting, and joint ventures with shared ownership. Spectrum of possible relationships between public and private players for the cooperative provision of infrastructure and/or services. NOTE-Traditional contracting and corporate philanthropy are excluded

5 PPP-Evolution Until 1970s- governments contracted the private sector to execute large infrastructure projects. 1980s -The rise of neo-liberal ideologies, such as globalization, free markets, privatization and competition coincided with the international debt crisis of s - An ideological shift from" freeing the market to modifying" the market (i.e., creating a facilitating environment);

6 PPP-Evolution Current _ An increasing recognition that the health agenda is so large that no single sector or organization can tackle it alone (Buse and Walt, 2000a) A growing interest among private players to enhance their involvement in social issues. Unilever s mission statement declares that corporate social responsibility is an integral part of our operating tradition

7 PPP-Objectives Generally PPPs in the health sector have three objectives: To promote those behaviors that reduce the incidence of diseases such as malaria, AIDS, and diarrhea etc. To facilitate equitable access to treatments including vaccines To improve health service delivery.

8 PPP-Models There are three common models of partnership: Product-based partnerships e.g vaccines Product development partnerships e.g. PHASE ( pull and push factors) Systems/issues based partnerships e.g. Roll-Back Malaria

9 PPP-Why should you join? A partnership can flourish only if both partners gain WIN-WIN Situation The gains to the public sector of investing in health are clear. For the private sector profits are critical, but they are far from the only consideration in deciding where to invest resources. A private sector manager wants the consumer s vote in terms of choice of his or her product. The public sector politician is looking for votes for their policies

10 PPP-Benefits to the Private Sector Enhanced image as a global corporate citizen, improving brand equity Staff motivation and retention Influence in development and government circles Insight into the nature of future markets Access to national and international research and knowledge Access to public infrastructure to stimulate markets

11 PPP-Benefits to the Public Sector Better services, higher coverage, and improved health, which ultimately leads to economic development Freeing resources for other priorities Learning about consumer research, marketing, and communications management Understanding clients as consumers

12 PPP-Contributions of the Private Sector Professional expertise in: _ Marketing _ Communications planning and management -- Consumer research _ Product tracking _ Product development

13 PPP-Contributions of the Public Sector Catalyst role _ Legitimacy/institutional home _ Resources _ Knowledge of target markets _ Facilitate regulatory environment _ Best practices and global vision

14 PPP-The Philosophy There are two extremes of political opinion on the subject. While, on the one hand, collaborating with the evil of global capitalism is considered unacceptable, on the other, it is felt that the only solution to the problem of development is the operation of the free market Private Sector is the engine of Growth.

15 PPP- Strategy for Success The 7 Golden Rules _ Good governance _ Partner selection _ Transparency and Communications _ Accountability- PPPs employ public resources, they are accountable to the public _ Avoiding unfair competition- PPPs needs to explore how subsidy and promotion will impact local industry and the sustainability of the partnership. _ Equity- PPP should ensure equity, particularly when public contribution has been raised with the purpose of helping the poorest. _ Externalities- are the spillover of benefits or harms beyond the immediate aims of a project.

16 PPP- Lessons Learnt _ PPPs should be based on win-win partnerships _ Expectations of who is to contribute what may be at serious variance. _ Partners should trust each other. _ Industries with a record of damaging public health either directly (by dealing in arms or tobacco, for instance) or indirectly (those that are polluters or have poor labor relations) may be inappropriate partners for health _ All potential private partners should be given the option to participate. _ Subsidized products can crowd out local markets

17 Business of Health in Africa World Bank Group Domains identified as major opportunities; Health Services Organisations Life Science Corporates- Pharma and Medical device manufacturing Health Risk Pooling Sales and Distribution companies Education Institutions The best ROI identified as D-4.

18 Business of Health in Africa World Bank Group The African Continent needs additional 600,000 Hospital Beds 90,000 Physicians 500,000 Nurses 300,000 Community Health Workers - IFC say $ 30 billion needed to meet demand for better distribution and retail system Majority of these demands will be met by the private sector. Local entrepreneurship and shift in donor thinking are the two forces helping this paradigm movement.

19 PPP Possibilities in Kenya Medical Tourism Health Supplies Education/ Training Consulting Auditing IT Solutions Health Promoting Quality Health Services Insurance Solutions Surveys/ Reports Accreditation /Certification

20 Conclusion Kenya Where are we on PPP? We need to institutionalise the PPP to avoid it being a just a fancy term. Cabinet Committee on PPP exists but none at the Ministry level-who sets the agenda? NESC exists but do they have a strategy e.g. communication strategy? Developmental Partners / Donors have they shifted as yet?

21 St Francis of Assissi Start by doing what's necessary, then do what's possible, and suddenly..you are doing the impossible.

22 I wish all the KAP officials and members success in their mission. Thank You