Public-Private Partnership and Risk Management in Healthcare System

Abstract

The lack of financial resources in public health organizations of the Kyrgyz Republic requires the involvement of private sources of funding. Private sector involvement can take place in the construction and operation of hospitals, clinics, laboratories, and other health facilities. A prerequisite for public-private partnership is the joint financing of projects. At the same time, possible risks are shared between project participants. One of the risks is the risk associated with the unpredictability of demand for services. The emergence of partnerships that provide high-quality medical services requires a preliminary identification of risks and their effective distribution among the participants in a public-private partnership. The next type of risk is determined by such economic factors as changes in bank interest rates on loans, exchange rates, inflation rates, tax rates, which ultimately can limit the amount of credit resources and, accordingly, expected income. Risk management in a public-private partnership involves the definition of risks as expected losses associated with an increase in costs not provided for in the project, as well as a discrepancy between the expected financial results planned in the forecasts of the public-private partnership. The paper gives a description of the types of risk, the principles of their prediction and prevention.