Health care and Public-Private Partnerships

Don’t be fooled by the clever language used to describe public-private-partnerships (P3s). P3s represent a form of health care privatization by stealth, and the only people who benefit from these so-called “partnerships” are the corporate CEOs and shareholders who get to line their pockets with public money – and lots of it.

In the past, governments relied on the private sector to build public health care infrastructure (such as hospitals), but the buildings were still owned and operated by the public.

P3s are very different: a for-profit corporation (or a consortium of corporations) finances, designs, builds, owns, and operates a hospital and delivers health care services on behalf of the government. The hospital is owned by the corporations typically for a period of 30 to 60 years. P3s cost more, take longer to build and are not accountable to the public they are meant to serve. P3s are attractive to governments because they are seen as a way to invest in infrastructure without the full cost of the project appearing all at once. These deals allow governments to make announcements about new facilities, without showing the financial consequences for several years.

But when private companies take over a public project the focus shifts away from the public interest and meeting community needs to ensuring a profit for the companies’ shareholders.

The tried and true public funding model is less expensive, more accountable and more transparent than the P3 model. After years of neglect, public infrastructure requires new commitment and investment. Our democratically elected governments are best placed to answer the call.