Russia to develop PPP model for modernization of hospitals

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Russia to develop PPP model for modernization of hospitals

According to local sources, Russia's President Vladimir Putin has called on the assembled ministers, including Finance Minister Anton Siluanov and Health Minister Veronika Skvortsova, to develop a range of models for public private partnership (PPP) initiatives that could create "attractive conditions" for investors, with a focus on financing renovation and construction of new medical facilities.

Putin said that relying on the rates that individuals and companies pay into the state's obligatory medical insurance fund is not an option. Using government funds alone is also "ineffective, expensive and at times simply money going nowhere," the president said according to the sources.

Sergei Shishkin, professor at the Higher School of Economics' Institute for Health Economics, said  two key strategies are being employed: first, drawing existing private institutions into the provision of public health care, and second, increasing private investment in the creation of new facilities.

More than 10 % of the institutions that provide free public medical care are already privately run, but with minimal state support. However, recent amendments have given private and state-run facilities equal conditions for receiving state funding, which could bring more private institutions into the health sector.

In addition to cooperation with the private sector, Putin called for continued structural reforms to eliminate ineffectual spending in health care.

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