PESHAWAR: According to reports, Health Foundation Khyber Pakhtunkhwa has applied to the government for permission to prolong the contracts of hospitals that are outsourced for a second time. This is because the government has not yet appointed members of its Board of Governors or approved agreements with new partner organizations.
In 2017, the government gave contracts to private companies to manage eight public hospitals. After their initial three-year term ended in June 2023, the contracts were extended in 2020. Then, as a stopgap measure, the provincial cabinet extended their contracts by six months.
Nevertheless, since the Board of Governors (BoG) does not exist to approve the signing of agreements with new partners—partners who have been almost selected—Health Foundation (HF) has again contacted the health department to further extend the interim arrangement after the extension has expired.
Under the Public-Private Partnership Act of 2016, the government established HF, a public sector organization, to promote the outsourcing of hospitals to private organizations. BoG oversees HF and makes all significant decisions.
The government has not yet designated a BoG to transfer these healthcare facilities to new partners.
According to sources, the BoG’s three-year term came to an end on October 17 of last year, but the HF was unable to turn over eight health facilities to partner organizations because the nomination and notification process for new board members had not yet been finished.
“HF has asked the health department in writing that, prior to the deadline of February 3, 2024, it has finished the process of choosing partner organizations for the hospitals’ outsourcing in accordance with cabinet directives.”
However, as per the law, the BoG’s approval is necessary before the final bid winners may be announced. In order to move forward with the hospital outsourcing, the foundation has already asked the department for the nomination of the BoG. The provision of high-quality patient care at these hospitals was previously contracted out to private partners; their contract expired on June 26, 2023.
In the Toikhula and Mola Khan Serai Sarokai areas of South Waziristan tribal district, the Dogar area of Kurram tribal district, the Mamad Gat area of Mohmand tribal district, the Darazinda area of the former Dera Ismail Khan frontier region, the Ghiljo area of Orakzai tribal district, and the Mastung and Garam Chashma areas of Chitral district are among the six type D hospitals and one each of the tehsil headquarters hospital and rural health center (RHC) located in these areas.
Following the expiration of the contracts with these eight outsourced hospitals, the Cabinet Supervisory Committee directed that service delivery be extended on a stopgap arrangement basis with the former implementing partners until the retendering process was completed and new contracts were signed.
The implementing partners have contacted HF, claiming that the finance department has notified them that they will not get any additional funding following the conclusion of the new partner selection process by the date established by the provincial cabinet.
Therefore, further extension is needed in order to maintain services at these facilities. According to the letter, “We require an extension of the stopgap arrangement until the nomination of BoG, which can approve the award of contracts to successful bidders.”
According to sources, HF was attempting to secure government clearance for the contract extensions since the finance department’s funds were critically low. They continued, “Otherwise, we wouldn’t be able to continue services because we need to meet other expenses and pay staff salaries.”
According to the law, the health department must give hospitals budgets that they can use to improve services, such as hiring specialists and making sure the lab, blood bank, and operating room are always fully stocked and operational and that patients receive high-quality care in their communities of origin.
