Public and private partnerships for MIH-CP programs are one way governments work to complete projects efficiently. If you’re starting an MIH-CP program, you might wonder how to establish a public and private partnership supporting your mission. In this guide, we’ll discuss what a public-private partnership (PPP) is and how it applies to MIH-CP.
To have a public and private partnership for mobile integrated healthcare-community paramedic (MIH-CP) programs, you must begin a conversation between public health organizations and private health providers. Public-private partnerships seek to align the efficiency of the private market with the goals of the public.
Below, we’ll pull out the magnifying glass and examine what a public and private partnership is, how it works, and what it might do for your MIH-CP program.
What is a Public and Private Partnership and How Do They Relate to MIH-CP?
While many of you may be familiar with a public-private partnership, some might be less familiar with the goals of these programs. Before we can look at how to apply a PPP to MIH-CP, we need to understand some basic principles about how these programs work.
Remember that there are numerous ways a public and private partnership can be set up – there is no “one size fits all.”
The main characteristics of a public and private partnership:
- Combine the benefits of the public and private sectors
- Reduce overall costs
- Improve maintenance
- Focus on results rather than on the input
- The public remains in control
- Longer contracts
Let’s take a moment to describe each of these goals in more depth.
Combine the Benefits of the Public and Private Sector
The goal of PPP is to maximize the potential of the public and private sectors. What does this mean? Think about the public and private partnerships as a doubles tennis team where each player has strengths and weaknesses and works together to help each other.
On the one hand, you have the public sector(government), and since the leaders are often comprised of elected officials, they usually have the general population’s best interests at heart. While they typically have good intentions, they frequently lack project efficiency and resources.
On the other hand, you have the private sector (for-profit businesses), which is quite efficient but doesn’t always have the overall public good in mind (they want to make money).
So, in a public-private partnership, the government decides to partner with a private company; however, they do this to maximize the project’s efficiency. The private company benefits from the work, and the public achieves community goals.
Reduce Overall Costs
The PPP model also allows the public sector to lower overall project costs. Sometimes, the public budget (from taxpayers) doesn’t have the funds for a project, so the government will set up a public-private partnership where the private company funds much of the project. But why would a private investor pay for a program?
The investors might collect a return on user fees or be reimbursed by the government when the service is adequately met. For example, if a state enters a public-private partnership with a private ambulance company to provide an MIH-CP program, the program would have to deliver the agreed upon results to receive full payment for the duration of the contract.
Instead of saying, we have $100,000, now fix the problem, the question is, how can we fix this problem for the least amount of money? This kind of change in thinking can drastically reduce costs.
Improve Maintenance of the Programs or Infrastructure
During a traditional partnership, the public entity might often hire someone to complete a project, such as a bridge. However, that bridge must be maintained to remain safe and usable by the public. With a public-private partnership, the company that builds the bridge often takes the time to maintain the bridge as well.
In this way, a public and private partnership ensures that the project is complete for the least amount of money and also means the project will be appropriately maintained.
Public Private Partnerships Focus on Results Rather than on Input
PPPs are more interested in results rather than input. For example, instead of saying, “We want to put this much money toward this project,” we might say, “Here are the results we want to pay for.”
With this approach, instead of telling contractors that they will pay them X amount of money for a project, they can take price quotes from various companies and choose the business that offers the best prices and results.
If you’re curious, you can watch this video explaining public and private partnerships.
The Public Remains in Control
With a public and private partnership, ultimately, the public remains in control. While there is some shared risk to the public and private members of the contract, once the term is up, the control goes back to the public. In this way, the public’s interest remains at the forefront of the program.
Longer Contracts
In traditional funding models, the government will hire someone to complete a project; however, once the contract is over, they have to rehire someone when maintenance or a rebuild is needed, which can take longer and cost more money.
With private and public partnerships, the contracts usually last about 20 years. This ensures that maintenance can continue the project, hopefully reducing long-term costs.
How to Make Workable Public and Private Partnerships for MIH-CP Programs
Let’s discuss how public and private partnerships could look specifically for mobile integrated healthcare programs. As we already mentioned, there is no standard formula for these contracts – they are often negotiated like any business deal (with a few differences).
Here are several ways to have a public and private partnership for MIH:
- Identify a need and start the conversation
- List the goals of the program
- Talk about funding incentives
In the following few paragraphs, we’ll discuss the details of each point.
PPPs for MIH Programs: Identify a Need and Start the Conversation
Both sides must talk at the negotiating table to get public and private partnerships for MIH-CP programs. Meeting with community leaders, stakeholders, and the general public will help establish goals. Public-private partnerships are often established for infrastructure projects, such as roads or bridges. With a health program like MIH-CP, the process will be similar but with some critical nuances.
Using an example, let’s say that a county government decides that there are too many people overusing the 911 system. In this instance, they would contact potential partners – such as private ambulance companies – and allow each place to pitch a plan to correct the problem.
After that, there can be more discussion about how reimbursement will work and who will initially fund the program. When developing a complex “user-pay” system, the government might provide reimbursement if the program meets the standards.
PPPs for MIH Programs: List the Goals of the Program
Goals must be established before the program begins. The public entity seeks to save money on the project in a public and private partnership. The project should focus on the goal – for instance, how to reduce the overuse of the 911 system.
If the public entity provides a lump sum and then says, “Go solve the problem,” it’s less likely that the project will deliver on set goals. Setting goals is also vital to deciding when and how to provide reimbursement. Let’s talk about that.
PPP for MIH Programs: Talk about Funding Incentives
If you’re on the public side, you might wonder: how will we pay for an MIH-CP program in a public-private partnership? Let’s talk about two scenarios.
If the state you’re operating in has no set laws allowing MIH-CP programs to bill patients directly for their services, then it’s likely that the public entity will have to provide the funds some other way (grants, tax dollars).
On the other hand, if laws are in place that allow for MIH-CP to recuperate the funds they lose operating the program, then there’s a chance that the private company providing the services will provide the initial investment and collect any potential for reimbursement.
Funding is a tricky topic with MIH-CP. Suppose your area doesn’t already have a structure in place to pay mobile integrated health program. In that case, it’s prudent to begin advocating for changes to local legislature surrounding community paramedicine reimbursement.
The Reason You Should Consider Public and Private Partnerships to MIH-CP Programs
A public and private partnership can use the benefits of both the public and the private sectors. Indeed, PPPs for MIH-CP programs can lower costs, increase customer service, and lead to long-term gains.
Implementing a PPP for your MIH-CP team it’s all about identifying an area of need, setting realistic goals, and then determining how the project will recuperate the invested funds.
Contact Julota to learn how their MIH software can enhance your ability to communicate with partners, gather data, and improve the operational efficiency of your program.