Tuesday, 15 April 2014

PPP (Outsourced Healthcare) Bad for Lesotho

This video from Oxfam shows quite clearly the problems that have resulted from the decision of the Lesotho government to outsource the management of their hospital to Netcare.

There are many people who will probably try and dispute this. There are those who will claim that the success of the hospital has created this problem and it was impossible to foresee that more patients would need to be treated than the "ceiling" agreed to (although this would require ignoring all sorts of logical projections, etc.).

Two responses: Firstly, a government-run health system is that it doesn't run on an absolute per-patient cost - it adapts as required. The economics of more patients = more money must be spent, irrespective of whether that money exists or this is the best way to spend that money is the exact problem with this outsourced healthcare model!

Secondly, not only was it possible to foresee this type of problem; it was predictable - see this post from this blog written in 2011. So basically, I told you so. Sigh.

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