KP reviews fines for outsourced hospitals over service complaints

PESHAWAR: The Khyber-Pakhtunkhwa Health Department has begun discussions on raising penalties for private organisations running outsourced government hospitals after complaints about weak performance and administrative shortcomings, according to officials and sources.

Under the current public-private partnership model, which is supervised by the Khyber-Pakhtunkhwa Health Foundation, partner organisations can be fined 10 per cent of their total budget if they fail to meet contractual obligations. These obligations particularly relate to staff attendance and the provision of essential medical services.

The Health Foundation has outsourced 19 hospitals across the province to experienced private entities and non-governmental organisations. Funds are released by the government on a quarterly basis, linked to performance assessments carried out by monitoring committees.

These committees include representatives of the health department, district administration and the Foundation. Regular monitoring is conducted to check whether the contracted organisations are complying with agreed standards and responsibilities.

Complaints from districts

The department has received several complaints from district health officers about poor services at a number of outsourced facilities. The reported problems include repeated staff shortages, the non-availability of medicines and equipment, and interruptions caused by protests and strikes by medical personnel.

Patients have also voiced dissatisfaction over the standard of care, especially in remote districts. These hospitals had been outsourced as part of an effort to address longstanding weaknesses in performance and improve service delivery in areas where the public health system had struggled.

Purpose of outsourcing

The outsourcing initiative was originally introduced to revive underperforming public hospitals in far-flung parts of the province by drawing on private sector expertise. The plan aimed to improve hospital management, recruit specialists, install equipment and ensure its maintenance.

The review of penalties comes as the provincial health authorities examine whether the existing enforcement mechanism is sufficient to ensure that private partners meet their commitments under the outsourcing agreements. Under the existing public-private partnership (PPP) model overseen by the Khyber-Pakhtunkhwa Health Foundation, partner organisations are currently liable to pay a penalty equivalent to 10 per cent of their total budget for failing to meet contractual obligations, particularly in staff attendance and delivery of essential medical services.

The discussions reflect concerns within the department over the functioning of outsourced hospitals and the quality of services being delivered under the current arrangement.