Latest News - Upgrade and Refurbishment of Phalaborwa Hospital...

PUBLIC PRIVATE PARTNERSHIP

Public Private Partnership > Latest News > Upgrade and Refurbishment of Phalaborwa Hospital in Limpompo

Topic

Upgrade and Refurbishment of Phalaborwa Hospital in Limpompo

Source

PPP Unit

Date

2011/11/22

Sypnosis

In 2008, the Limpopo Department of Health and Social Development embarked upon the assessment of a Public Private Partnership to upgrade and refurbish the Phalaborwa Public Hospital, built in the 1970’s to cater for the white community, but allowed to become underutilised the past several years

Report

PHALABORWA UPGRADE & REFURBISHMENT

In 2008, the Limpopo Department of Health and Social Development embarked upon the assessment of a Public Private Partnership to upgrade and refurbish the Phalaborwa Public Hospital, built in the 1970’s to cater for the white community, but allowed to become underutilised the past several years.

The project would involve the finance, design, upgrade and refurbishment of the hospital and the operation and maintenance thereof as a private hospital in terms of a PPP.

The facility was underutilised because the Department had refurbished the nearby Maputa Malatji Public Hospital, but it had the potential to provide private healthcare to appropriately resourced residents of the community who otherwise had to drive about 150km to the nearest private healthcare facility in Tzaneen.

The concession of this hospital to a private operator is intended to bring revenue to the Department in the form of an annual concession fee. Job creation was also an important element of this project as there are 103 workers on site during the construction phase which is on-going as this is being written. When the hospital is completed it is estimated that there will be 198 permanent employees including nurses, pharmacists, pathologists and other professionals as well as general workers such as cleaners and landscape workers.

The project has also opened opportunities for local sub-contracting companies to provide the cleaners, caterers and other semi-skilled occupations. Local doctors and their patients will benefit from the opening of this facility as it will provide a nearby source of first rate medical care. A high level of black economic empowerment has been achieved as 40% of the consortium is owned by local doctors and ordinary people who purchased shares.

The commissioning of this hospital is expected in March 2012. The buildings were so dilapidated and old that the construction company, Bathlodi Construction, had to tear down the prefab material used from the 1970’s and use new bricks and mortar for the structure.

The public sector health patients in the area will also benefit from this project, as there is an arrangement between the Limpopo Department of Health and Social Development and the private operator for public patients to be referred using the GEMs rates less a discount.

According to Antorius Spek the Hospital Manager for the private party (Clinix) this facility will also provide health care services to employees of the two mining companies in Phalaborwa. It also has the potential to boost tourism in the area as well because the nearest private health care facilities are far away in Nelspruit and Tzaneen.

As part of Clinix’s Social Responsibility, a home has been established where young boys from the streets and orphans may stay. Meals will be provided as well as an adequately-sized bathroom. There is only one toilet at the present moment for 18 young boys. Spek said it is a Clinix policy to provide a daily meal to 500 people in the community where one of its hospitals is located and this policy will be implemented in this area as well.

Another benefit brought by the project was the construction of a specialised temporary structure for the X-ray machine at the Maphutha Maltji Public Hospital, which had been delayed for some time. Although this was not within the scope of the PPP project the private party deemed it fit to assist in this regard. The structure is so beautiful that it is unlikely to be destroyed when the permanent X-ray facility is built according to Maphutha Maltji officials.

Mr Spek also said the new hospital hopes to make a monthly turnover of R3 million whilst R1.2 million will go to salaries. This will have a multiplier effect in a small town like Phalaborwa. He concluded, “This success story would not have been possible without the facilitation done by the PPP Unit and other stakeholders”.