A model framework of output specifications for hospital PPP/PFI projects

Abstract

Purpose -Social infrastructure projects such as hospitals are increasingly being procured through public private partnerships (PPP). Due to their complex nature and very high operational requirements, these healthcare projects need special attention in developing robust output specifications at the early procurement stage. The purpose of this paper is to present a model framework of output specifications for adoption by public sector clients in jurisdictions planning to develop hospital PPP/PFI (Private Finance Initiative) projects. Design/methodology/approach -The research is based on an in-depth analysis of best practices from standard and sample project output specification documents used in Australia and the UK for completed hospital projects, reinforced by interviews with key stakeholders in the two countries. Findings -Drafting output specifications for hospital PPP projects is perceived to be a difficult and challenging task due to the complexity and changing needs brought about by evolving health policy, technology and medical advancement. The overarching target of preparing good output specification is to achieve value for money, innovation, risk transfer (including catering for changes), whole life asset performance and establishing performance criteria to link up with the payment mechanism. Practical/implications -The proposed framework is built up from public sector requirements on the physical asset, operational services provided by the private sector, with links to payment mechanism and performance evaluation. It also addresses change mechanism as well as conditions upon hand-over back to the public sector. Originality/value -Unlike traditional projects which are procured using prescriptive specifications, PPP/PFI projects are procured using performance based output specifications. This paper provides the foundation and a model framework for preparing comprehensive output specifications based on best practices in Australia and the UK, using hospital as the contextual background.

Regional Maldistribution of China’s Hospitals Based on Their Structural System

“…Public-private partnerships (PPP) are introduced and applied in many fields of public services recently by the Chinese government and is a good way to provide healthcare services including hospitals. It could not only solve the shortage of funds for hospital construction and reduce the dependence on government, but also make the hospital supply more effective [65]. However, we should also point that the market is not a panacea, especially in areas where the profitability is very limited and the government should assume the main responsibility for the supply of hospitals.…”

Development Framework for Performance-Based Output Specifications to Encourage Innovation in Public-Private Partnerships

“…PSOS must be well prepared and clearly address the scope and objectives of the asset that has to be performed. Javed, Lam, and Chan (2013) stated that PSOS contains aspirations, purposes, scope, performance target, and also demonstrates the standard of compliance, constraints and risk allocation. The overall performance target of drafting and executing robust PSOS is to achieve the performance quality and provide benefits for the end users.…”

“…Drafting a comprehensive and an effective PSOS to fulfil the project requirements and achieved the desired outcomes is a challenging process which require time, effort and expertize and this investment is quantitatively considered of great importance for delivering the PPP projects (Javed, Lam, & Chan, 2013).…”

Barriers to environmental sustainability of construction projects

“…It must be noted that findings of the research cannot be generalized due to the small sample size used. However, small sample sizes are uncommon with qualitative research, for instance, Javed et al (2013) in a research dubbed "A model framework of output specifications for hospital Public Private Partnership and Private Finance Initiative projects" interviewed only two experts. However, the experience of interviewees (all had more than five years of environmentally sustainable project experience) enhanced the genuineness of responses for further analysis.…”