| DEPARTMENT | PROJECT COST |
|---|---|
| Health Department | PKR 1,700 Million |
The Health Department initiated operations & management of DHQ Hospital Badin under public private partnership (PPP) modality. The Health Department decided to proceed with the project without conducting detailed feasibility study from external consultants. After detailed public procurement process and with the approval of PPP Policy Board in its 16th meeting held on 15th June 2015, the DHQ Hospital Badin was awarded to The Indus Hospital. The Concession Agreement was signed in January 2018. After satisfaction of all the condition precedents in accordance with the Concession Agreement, the project became operation in September 2018.
The objective of the project is to enable provide quality health care service delivery to public, ensuring equitable and sustainable access. It is envisaged that the management of public sector healthcare facilities is handed over to private sector with the expectation that private sector expertise and know how in the field will bring a visible change in these institutions and offer quality services at affordable prices. .
Indus Hospital & Health Network entered into a Concession Agreement with Health Department on March 18, 2015, for managing operations and maintenance of District Head Quarter (DHQ) – Badin Hospital. The concession was signed for the period of 10 Years starting from Mar 2016 to June 2026.
The Scope of Work for DHQ Badin included following:
The better performance and high quality of service delivery level at DHQ Badin witnessed immediate increase in patients visits. The initial budget allocation for DHQ Hospital Badin was PKR 150 million approximately, which turned out to be insufficient. The Indus Hospital had to spend money from their own sources to ensure high quality service delivery free of charge.
The budget deficit was paid by the GoS from time to time through grants to Indus Hospital for DHQ Hospital Badin. However, the budget allocation remained the same even after passage of five/six years of operational period.
The matter was brought to the knowledge of PPP Policy Board in its 33rd held on 29th April 2021. It was deliberated that the contractual arrangement with The Indus Hospital for DHQ Hospital Badin faces insufficiency of budgetary allocations due to user demand exceeding the anticipated levels. The PPP Policy Board directed Health Department to work out with Indus Hospital the revised budget and execute the amended agreement for the remaining period of contractual term. Health Department directed to ensure that all the missing key aspects or gaps should be accounted for in the amended agreement.
Consequently, based on an internal assessment carried out, the Indus Hospital proposed a budget of Rs 9,115,075,119 for managing DHQ – Badin Hospital for the period of remainder four (o4) years i.e. July 1, 2022 to June 30, 2026. The Independent Expert (A.F. Ferguson) conducted detailed review and made some corrections that was submitted through its report.
The Independent Expert in its report further noted that 155 government employees deputed at the hospital were not considered in the payroll budget. It was observed that the budget amount may decrease by PKR 691 million in case if all 155 employees are retained by the Indus Hospital.
The budget allocation matter was presented to Cabinet in its meetings held on 19th & 22nd July, 2023, where the Cabinet approved the budget for remainder four years with the direction to further improve KPIs to monitor its service delivery. Furthermore, the Cabinet directed Health Department would utilize services of 155 government employees working at DHQ Hospital Badin in other public sector hospitals except those employees required by the Indus Hospital.
Based on cabinet decision, the Health Department constituted a committee under the Chairmanship of DG Health Services. The committee after detailed rounds of deliberation submitted proposed KPIs to Health Department. The draft amendment & restated concession agreement has been sent to Law Department for vetting. It is expected that amended agreement shall be executed in the month of April 2024.
10-Nov-2021
