Cabinet approves PPP to improve healthcare services in government hospitals

Colombo, January 6 (Daily Mirror) - The Cabinet of Ministers has approved proposals to expand advanced diagnostic services and hemodialysis facilities in government hospitals through Public-Private Partnership (PPP) mechanisms, subject to performance-based payment schemes, the Government said.

The demand for advanced diagnostic services within Sri Lanka’s public health system has increased significantly due to the rising prevalence of non-communicable diseases and the expansion of comprehensive healthcare services at all levels. However, patients requiring reports from key diagnostic equipment such as CT and MRI scanners, digital subtraction angiography (DSA) units, cardiac catheterization laboratories, and automated hematology and biochemistry analyzers continue to face severe difficulties due to limited availability in government hospitals.

Health authorities have observed that long waiting lists and inadequate access to such equipment have resulted in delays in clinical management. In addition, financial constraints, complex procurement procedures, and challenges related to maintenance have limited the State’s ability to purchase and operate advanced medical equipment.

In view of these challenges, the Cabinet approved a proposal submitted by the Minister of Health and Mass Media to obtain diagnostic services and equipment through suitable PPP arrangements, following prescribed procurement procedures and based on a performance-linked payment model.

Meanwhile, the Cabinet has also granted approval to expand hemodialysis services in government hospitals under a PPP framework. Although 80 government hospitals currently provide hemodialysis treatment, existing facilities are insufficient to meet the growing demand, particularly from patients suffering from chronic kidney disease.

Based on the successful PPP model implemented at the National Hospital, Kandy, the Ministry of Health and Mass Media plans to introduce a similar mechanism in selected government hospitals. Under the proposed arrangement, the private partner will fully finance and manage hemodialysis machines, reverse osmosis systems, consumables, as well as operation and maintenance, while the government will provide infrastructure and retain full clinical supervision.

The initiative aims to improve access to timely diagnostic and dialysis services, ease the burden on patients, and strengthen the public healthcare system through public-private collaboration.