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Lesotho Hospital and Filter Clinics: A Public-Private Partnership
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This case looks at the public-private partnership (PPP) between the Health Ministry for the government of Lesotho and a private consortium headed up by Netcare, a South African company, to build and operate a new referral hospital and four feeder clinics in Maseru, the nation's capital. The project was one of the first efforts to design a PPP in Africa for the construction and the operation of a major hospital plus the clinical services. The project is perceived by the International Finance Corporation as a major success. The case focuses on three issues: 1. the steps taken by the government, IFC, and the private parties to form a workable public-private partnership; 2. the design and implementation of the key performance indicators contained in the contract; and 3. the sustainability of the project in light of higher than anticipated costs and lower quality health services in other areas of the country, which have resulted in a demand for services from the new clinic and hospital far in excess of the numbers originally forecast. Case number 1999.0