Health Outsourcing Study

Health Outsourcing
Study

the government has adopted a limited outsourcing model under which 8 public sector hospitals were outsourced to assess if this can lead to savings & better efficiency

KP Health sector

Overview

The health sector is the single highest allocation in the current budget. During 2019-20, the health sector current budget was Rs. 43.9 Billion – about 11 per cent of the total. Likewise, the capital expenditure on health services is also significant and during 2019-20, the development spending on health services was Rs. 9.87 Billion – nine per cent of the total development budget. While the high spending on health is a priority of the provincial government, it poses a challenge for the Finance Department (FD).

Health Outsourcing Study

Progress

SEED conducted a Health Outsourcing Study to assess the performance of the three outsourced government hospitals against non-outsourced government hospitals. The findings of the study indicate that outsourced public sector hospitals outperform the non-outsourced hospitals both in terms of service delivery and cost per patient. The results of the study were presented to the Health Department and then the Cabinet to support the Scale-up decision for an additional 57 hospitals identified for health outsourcing reforms.