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Developing an Analytical Framework for Analysing and Assessing Public-Private Partnerships: A Hospital Case Study

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  • Demi Chung

Abstract

Public-Private Partnerships have been a popular public procurement policy in a number of countries including Australia, the UK, and New Zealand since the early 1990s. This article examines the experience of the Port Macquarie Base Hospital (PMBH), the first public hospital delivered under the Public-Private-Partnership (PPP) model in the State of New South Wales, Australia. Using a framework adapted from Macário, this study focuses on the political climate in which this PPP mechanism was implemented, identifying the underlying motives driving the use of a PPP to deliver public health services and clarifying the essential conflicts undermining the PPP process. The article covers the entire life cycle of the PPP hospital, from the initial contracting process to its eventual sale. A political desire to reduce public debt, allied with an ideology assuming private sector superiority, made this approach particularly attractive, but failed to deliver the desired outcome. The success of PPPs would appear to depend strongly on goal alignment in a multi-level political system. Auditing processes during the implementation process need to take account of the presence or absence of such alignment.

Suggested Citation

  • Demi Chung, 2009. "Developing an Analytical Framework for Analysing and Assessing Public-Private Partnerships: A Hospital Case Study," The Economic and Labour Relations Review, , vol. 19(2), pages 69-90, July.
    • Handle: RePEc:sae:ecolab:v:19:y:2009:i:2:p:69-90
    DOI: 10.1177/103530460901900206
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    References listed on IDEAS

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    1. Jane Broadbent & Richard Laughlin, 2004. "PPPs: Nature, Development And Unanswered Questions," Australian Accounting Review, CPA Australia, vol. 14(33), pages 4-10, July.
    2. Oliver Hart, 2003. "Incomplete Contracts and Public Ownership: Remarks, and an Application to Public-Private Partnerships," Economic Journal, Royal Economic Society, vol. 113(486), pages 69-76, March.
    3. Darrin Grimsey & Mervyn K. Lewis, 2005. "Are Public Private Partnerships value for money?," Accounting Forum, Taylor & Francis Journals, vol. 29(4), pages 345-378, December.
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    1. Carmona, Miguel, 2010. "The regulatory function in public-private partnerships for the provision of transport infrastructure," Research in Transportation Economics, Elsevier, vol. 30(1), pages 110-125.

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