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Can Public-Private Partnerships Foster Investment Sustainability in Smart Hospitals?

Author

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  • Roberto Moro Visconti

    (Department of Business Management, Università Cattolica del Sacro Cuore, Via Ludovico Necchi, 7, 20123 Milan, Italy)

  • Laura Martiniello

    (Faculty of Economics, Universitas Mercatorum, Piazza Mattei, 10, 00186 Rome, Italy)

  • Donato Morea

    (Faculty of Economics, Universitas Mercatorum, Piazza Mattei, 10, 00186 Rome, Italy)

  • Elisa Gebennini

    (Faculty of Economics, Universitas Mercatorum, Piazza Mattei, 10, 00186 Rome, Italy)

Abstract

This article addresses the relationship between Public-Private Partnerships (PPP) and the sustainability of public spending in smart hospitals. Smart (technological) hospitals represent long-termed investments where public and private players interact with banking institutions and eventually patients, to satisfy a core welfare need. Characteristics of smart hospitals are critically examined, together with private actors’ involvement and flexible forms of remuneration. Technology-driven smart hospitals are so complicated that they may require sophisticated PPP. Public players lack innovative skills, whereas private actors seek additional compensation for their non-routine efforts and higher risk. PPP represents a feasible framework, especially if linked to Project Financing (PF) investment patterns. Whereas the social impact of healthcare investments seems evident, their financial coverage raises growing concern in a capital rationing context where shrinking public resources must cope with the growing needs of chronic elder patients. Results-Based Financing (RBF) is a pay-by-result methodology that softens traditional PPP criticalities as availability payment sustainability or risk transfer compensation. Waste of public money can consequently be reduced, and private bankability improved. In this study, we examine why and how advanced Information Technology (IT) solutions implemented in “Smart Hospitals” should produce a positive social impact by increasing at the same time health sustainability and quality of care. Patient-centered smart hospitals realized through PPP schemes, reshape traditional healthcare supply chains with savings and efficiency gains that improve timeliness and execution of care.

Suggested Citation

  • Roberto Moro Visconti & Laura Martiniello & Donato Morea & Elisa Gebennini, 2019. "Can Public-Private Partnerships Foster Investment Sustainability in Smart Hospitals?," Sustainability, MDPI, vol. 11(6), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1704-:d:215864
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    2. Roberto Moro Visconti & Donato Morea, 2019. "Big Data for the Sustainability of Healthcare Project Financing," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    3. Stefano Poponi & Gabriella Arcese & Enrico Maria Mosconi & Michelangelo Arezzo di Trifiletti, 2020. "Entrepreneurial Drivers for the Development of the Circular Business Model: The Role of Academic Spin-Off," Sustainability, MDPI, vol. 12(1), pages 1-17, January.
    4. Mª Isabel Ortega-Díaz & Ricardo Ocaña-Riola & Carmen Pérez-Romero & José Jesús Martín-Martín, 2020. "Multilevel Analysis of the Relationship between Ownership Structure and Technical Efficiency Frontier in the Spanish National Health System Hospitals," IJERPH, MDPI, vol. 17(16), pages 1-19, August.
    5. Karine Borges de Oliveira & Otávio José de Oliveira, 2022. "Making Hospitals Sustainable: Towards Greener, Fairer and More Prosperous Services," Sustainability, MDPI, vol. 14(15), pages 1-21, August.
    6. Laura Martiniello & Donato Morea & Francesco Paolone & Riccardo Tiscini, 2020. "Energy Performance Contracting and Public-Private Partnership: How to Share Risks and Balance Benefits," Energies, MDPI, vol. 13(14), pages 1-19, July.
    7. Alla Mostepaniuk & Turgay Akalin & Mohammad Reza Parish, 2023. "Practices Pursuing the Sustainability of A Healthcare Organization: A Systematic Review," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    8. Binchao Deng & Dongjie Zhou & Jiachen Zhao & Yilin Yin & Xiaoyu Li, 2021. "Fuzzy Synthetic Evaluation of the Critical Success Factors for the Sustainability of Public Private Partnership Projects in China," Sustainability, MDPI, vol. 13(5), pages 1-23, February.
    9. Francesco Cappa & Federica Rosso & Antonio Capaldo, 2020. "Visitor-Sensing: Involving the Crowd in Cultural Heritage Organizations," Sustainability, MDPI, vol. 12(4), pages 1-14, February.
    10. Roberto Moro Visconti & Donato Morea, 2020. "Healthcare Digitalization and Pay-For-Performance Incentives in Smart Hospital Project Financing," IJERPH, MDPI, vol. 17(7), pages 1-25, March.
    11. Rocio Rodriguez & Göran Svensson, 2021. "The Role of Public Resource Desynchronization on Business Model Sustainability in the Private Healthcare Industry," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    12. Roberto Moro-Visconti, 2021. "Networking Digital Platforms and Healthcare Project Finance Bankability," Sustainability, MDPI, vol. 13(9), pages 1-18, April.
    13. Rodriguez, Rocio & Svensson, Göran & Wood, Greg, 2020. "Assessing corporate planning of future sustainability initiatives in private healthcare organizations," Evaluation and Program Planning, Elsevier, vol. 83(C).
    14. Donato Morea & Elisa Gebennini, 2021. "New Project Financing and Eco-Efficiency Models for Investment Sustainability," Sustainability, MDPI, vol. 13(2), pages 1-3, January.

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