April 5, 2026
KP resumes hospital outsourcing, signs agreements for eight facilities
The KP health department has resumed outsourcing public hospitals after four years, signing agreements for five facilities and taking the total to 24. Separately, three health facilities in Chitral have been handed over to Aga Khan Health Service-Pakistan.
April 5, 2026

PESHAWAR: After a four-year gap, the Khyber Pakhtunkhwa government has resumed outsourcing public hospitals to private organisations, aiming to improve services in underperforming healthcare facilities, Dawn reported.
On Saturday, the Khyber Pakhtunkhwa Health Foundation (KPHF) signed agreements with three organisations to manage five hospitals under the government’s public-private partnership plan.
KPHF Managing Director Dr Khizar Hayat told Dawn that the newly contracted hospitals are located in Darazinda in Dera Ismail Khan district, Mamad Gat in Mohmand district, Mola Khan Sarai in South Waziristan, Upper Giljo in Orakzai district, and Dogar in Kurram district. He added that the province now has 24 outsourced hospitals.
Dr Hayat said the contracts were initially planned four years ago but were delayed due to technical issues, which have since been resolved. Under the agreements, partner organisations must ensure the presence of medical staff, operating theatres, emergency services, pharmacy facilities, and introduce specialised care.
“Most hospitals outsourced so far have shown good results, with patient flow increasing,” he said. The partner organisations for the five hospitals include MERF and PIMS & JHC.
He noted that delayed payments to these organisations had previously affected patient care and staff salaries, but cash flow has now been streamlined to ensure payments within 20 days.
All NGOs running hospitals under the government receive quarterly budgets that are reviewed based on performance. Partner organisations are prohibited from holding protests that could disrupt services, and fines are being increased to ensure better compliance. Currently, organisations face a 10 percent penalty of their total budget for poor performance, with plans to raise the fine further.
The government had planned to outsource 72 more hospitals and completed formalities for these, but the process was halted due to a Peshawar High Court decision. Dr Hayat said 34 more facilities are ready for contracting, pending court orders.
Under government oversight, organisations are required to repair infrastructure, install necessary equipment, maintain medical supplies, and hire specialists including gynecologists, surgeons, physicians, ENT doctors, ophthalmologists, and staff for labour rooms and blood banks. Third-party audits have shown visible improvements in patient care at outsourced hospitals.
Meanwhile, in Chitral, KPHF signed a tripartite agreement with Aga Khan Health Service-Pakistan to manage the Tehsil Headquarters Hospital in Garam Chashma and rural health centres in Mastuj and Shagram.
The agreement was signed by Dr Hayat, district health officers Dr Farman Wali of Upper Chitral and Dr Naseem of Lower Chitral, and AKHS-P General Manager for Chitral and Gilgit-Baltistan, Merajuddin.
Merajuddin said the collaboration aims to ensure continuous provision of medical services during harsh winters, including consistent supply of essential medicines, modern diagnostic equipment, and the presence of qualified medical officers and specialists. He appreciated the efforts of provincial deputy speaker Surya Bibi, who facilitated the agreement by removing official hurdles.
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