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Working with Private Providers to Improve the Delivery of Priority Services

Developing a strategic mix of private and public provision of health services in order to achieve health reform objectives can be complex. Policymakers may wonder about what private providers could contribute to public health goals. The decision to collaborate with the private sector depends on whether working with the private sector offers a more cost-effective way to achieve health objectives than other interventions involving public providers. Private sector financing of health care is an integral component of developing country health systems. Private financing may include payments by individuals for pharmaceuticals and hospital stays, employer reimbursement for employees' healthcare costs, and other forms of private payments for healthcare. These types of payments may actually be paid to public sector health facilities. Encouraging private financing to supplement limited government funds is an important strategy in addressing budgetary issues. While it is difficult to separate service delivery and financing issues, this primer focuses more on the public-private service delivery mix rather than on the public-private financing mix. The purpose of this primer is to provide a conceptual framework for policymakers who are considering how best to strengthen the delivery of priority services by working with the private sector.