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Using public–private partnerships to achieve value for money in the delivery of healthcare in Australia

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  • Linda M. English

Abstract

This research locates the use of public private partnerships (PPP) within the new public management (NPM) reforms that have swept the Australian public sector. Empirical evidence from policy documents and a case study of a failed public hospital project in Victoria are used to illustrate problems associated with allocating risk in PPP arrangements. Evidence is presented that the government underestimated both sponsor and political risks associated with the arrangement. The bidder failed to understand the ramifications of the funding model, leaving it unable to provide the level of services required. The paper focuses on the changing nature of PPP policy. Initially adopted to transfer risk to private partners to avoid on-balance sheet recognition to achieve macro economic objectives, the aim of PPP has been refined to achieve optimal risk allocation to achieve Value for Money (VFM) in the delivery of infrastructure-based services.

Suggested Citation

  • Linda M. English, 2005. "Using public–private partnerships to achieve value for money in the delivery of healthcare in Australia," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 1(1/2), pages 91-121.
    • Handle: RePEc:ids:ijpubp:v:1:y:2005:i:1/2:p:91-121
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    Citations

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    Cited by:

    1. Khadaroo, Iqbal, 2008. "The actual evaluation of school PFI bids for value for money in the UK public sector," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 19(8), pages 1321-1345.
    2. Ranjith Appuhami & Sujatha Perera & Hector Perera, 2011. "Management Controls in Public–Private Partnerships: An Analytical Framework," Australian Accounting Review, CPA Australia, vol. 21(1), pages 64-79, March.
    3. Linda English & Jane Baxter, 2010. "The Changing Nature of Contracting and Trust in Public‐Private Partnerships: The Case of Victorian PPP Prisons," Abacus, Accounting Foundation, University of Sydney, vol. 46(3), pages 289-319, September.
    4. Linda M. English & James Guthrie & Jane Broadbent & Richard Laughlin, 2010. "Performance Audit of the Operational Stage of Long-Term Partnerships for the Private Sector Provision of Public Services," Australian Accounting Review, CPA Australia, vol. 20(1), pages 64-75, March.
    5. Acerete, Basilio & Stafford, Anne & Stapleton, Pamela, 2011. "Spanish healthcare public private partnerships: The ‘Alzira model’," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(6), pages 533-549.

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