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Date : 05/05/2004
Source: Free State Provincial Government
Title: S Belot: Public Private Partnership workshop


THE SPEECH OF THE FREE STATE MEC FOR HEALTH, MR SAKHIWO BELOT, ON THE OCCASION OF THE FREE STATE DEPARTMENT OF HEALTH PUBLIC PRIVATE PARTNERSHIP HEALTH WORKSHOP, Bloemfontein, 5 May 2005

Programme Director
Honoured Guests
Ladies and Gentlemen

Introduction

It is a privilege and honour for me to officially open and welcome you all to this very important workshop on Public Private Partnership (PPP) in the health sector. Although I am still fairly new in the department I have no doubt about the fact that this workshop has a profound historical significance. The challenges confronting us in terms of quality service delivery and infrastructure development are historical indeed and their significance cannot be underestimated. In her address during the launch of Pelonomi revitalisation programme my immediate predecessor, Ms Ouma Tsopo, stated the following with regards to Pelonomi hospital and I quote: "One of the developmental and transformation challenges that we are busy grappling with as the ANC-led government is the revitalisation of infrastructure in all sectors of our society, including the health sector. There is no doubt about the fact that the historically black institutions, whether in education, health or any other sector of our society, never enjoyed much or enough attention in the previous dispensation in terms of upgrading. These institutions suffered enormous neglect as a consequence of the policies of the then regime. As a result of this factor, services in these institutions deteriorated over the years as these facilities and infrastructure became dilapidated. Whereas the walls and floors of institutions meant for one specific racial group would be covered with marble, institutions of other less privileged racial group would just have bare cement floors and walls whose painting would be seen peeling off from time to time", close quote.

We meet today, ladies and gentlemen, to further advance this strategic objective of ensuring that quality health service is achieved and that our public health facilities are also up to scratch through the principle of PPP. There is no question about the fact that historically black public health facilities such as Pelonomi in Bloemfontein, Bongani in Kroonstad, Mofumahadi Manapo Mopeli in QwaQwa, and others, require an intensive infrastructural development due to the neglect that they have suffered in the past. I must emphasise at this stage that we cannot in anyway have quality health services within institutions, which do not meet the basic infrastructure development needs. Quality service goes hand in hand with quality infrastructure. I am proud to say that in this province enormous strides have already been made to advance quality health care through the mechanism of PPP. This has taken place both at our two hospitals of Pelonomi and Universitas. The projects we are currently undertaking at these two institutions, through this principle of PPP, serve as beacons of hope for what is to come. In welcoming you to this very important workshop I would like to share with you some of the advances in this regard, mindful of the fact that detailed presentations by management will follow around these matters.

Revitalisation and Private Public Partnership:

Programme director, honoured guests, ladies and gentlemen, the turning point of the revitalisation programme for Pelonomi hospital, and the revitalisation programme in the department of health in general, dates as far back as 1998 when the department, true to its values of innovation and a learning organisation, embarked on a process to identify alternative service delivery models. By then the department realised that it would take a long time to address the capital backlog and improve health services with the available funds in the departmental budget. It is for this reason that the department chose to follow the route of Public Private Partnership in order to have a huge injection of private sector funds that would be utilised for the revitalisation of our institutions and thus services in the province. By then the department also already had the experience of outsourcing of non-core functions such as catering, gardening, cleaning and security services. We were therefore not entering un-chartered waters.

On 25 November 2002 the department signed the PPP for the collocation of unused beds at Pelonomi and Universitas hospitals the purpose of which is to generate more funds for revitalisation that must take place at Pelonomi and Universitas hospital. A master plan that was developed for Pelonomi in particular was costed at about R100 million just to develop this institution. It became obvious that for any reconstructive work to take place on a sound footing at this institution cooperation with the private sector would need to take place. About 500 unused beds have been identified at both Pelonomi and Universitas hospitals to address this need. The co-location of these beds with the private sector aims to do the following in these two hospitals:

For Pelonomi hospital the objectives of this PPP are:

* Utilisation of presently under utilised space that exceeds the needs of the hospital,
* Utilisation of presently under utilised equipment that exceeds the needs of the hospital,
* Provision of private hospital facilities in areas of Bloemfontein previously not provided with these facilities,
* The general improvement in the nature and appearance of the Pelonomi hospital precinct,
* Improvements in the public sector facilities by means of additional revenue generation and upgrades undertaken by the partner in this PPP.

For Universitas hospital the following objectives are in mind:

* Utilisation of ward space that exceeds the needs of the hospital
* Optimisation of usage of theatres and other equipment, especially equipment of a highly specialised nature,
* Provision of tertiary and academic healthcare services to private sector patients,
* Retention of professional staff within the public health sector,
* Utilising the benefits of the partnership to enhance the capability and reputation of Universitas as a leading academic hospital.

Ladies and gentlemen, there is no doubt about the fact that cooperation with the private sector is critical in the delivery of health services specifically and all the other services in general. We see PPP initiative as a hallmark in terms of private sector investment in public health institutions out of which they get positive returns. Therefore, this initiative needs to be characterised by a positive spirit. The work that we have and continue to undertake at Pelonomi and Universitas under the auspices of the PPP programme speaks volumes. Infrastructural developments at Pelonomi in particular are a marvel as delegates at this workshop would be able to see at a later stage when a tour is taken to this institution.

The department has just received a final report on the feasibility study for the development and building of a hospital in Ladybrand as well as in Trompsburg. I understand that the Executive Council has also given approval for the department to pursue the necessary treasury approval to develop and build these hospitals through the PPP programme. At this stage everything is being done to secure this approval.

Conclusion:

Let me again take this opportunity to welcome you to this workshop and to wish you all the best in your deliberations. Specifically, let me welcome delegates from the PPP unit at the National treasury, representatives of the private sector as well as delegates from various provinces. I also want to take this opportunity to thank our partners in the PPP project in the Free State, the Community Hospital Care Management. Undoubtedly ours is a mutual success so far in the Free State in terms of bringing about a fundamental change in the lives of the people of this province. This partnership should be meaningful to the people of the Free State in their entirety. I know that this workshop will further consolidate the advances we have made in the province as regard the implementation of PPP as the sharing of lessons would definitely characterise this workshop. We want to learn from our friends present here and we also hope to share our experiences with you.

May you all enjoy your deliberations in this workshop. Enjoy the warmth and hospitality of the Free State province.

I thank you.

Issued by: Department of Health, Free State Provincial Government
5 May 2004

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