Public and Private Hospital Partnership

The increasing competiveness of the health care system has proven to threaten the survival of many public hospitals. Many have been forced to close down due to their inability to reduce their costs below the national average as well as inefficient administrative procedures. The closure of hospitals whether it is in rural or urban areas may have the potential to negatively impact the lives and health care of the more economically disadvantaged but at the same time it may be productive for the system as a whole. When public hospitals shutdown, the individuals that would normally use their services are faced to seek aid elsewhere (i.e. private hospitals) and many times the prices are generally higher at private hospitals than at public hospitals. Because the uninsured and underinsured are more likely to have limited education, and be economically disadvantaged they are more sensitive to these higher prices. However, as public hospitals are forced to shut down there seems to be the potential for public and private partnerships within the hospital systems. Many communities that have turned to this mixed model of ownership and financing have been successful in achieving their goals of maintaining the service mission of the public hospital while also attracting a mix of patients that would enhance financial stability. This has the potential to be a great fit for the system as it achieves efficiency, flexibility, integration and planning, proximity to the community in need, and the ability to support medical education needs. Co-operating and integrating together, putting the two resources together, you've got the ability to provide a better service overall to the community, by trying to avoid duplication, competition and sharing costs, rather than duplicating costs.