Giving Compass' Take:

• Jan-Willem Scheijgrond explains how Philips works to unlock public-private partnerships in fragile markets. 

• How can funders work to facilitate public-private partnerships? 

• Learn more about success in public-private partnerships. 

What platforms exist that bring together public and private partners early on to co-create processes that effectively mitigate risk, especially in fragile markets?

At Philips, we believe in the need to build platforms where partners from the public sector, private sector and civil society can convene and co-create health solutions. A neutral convener is essential to this process. In Kenya, the UN Resident Coordinator and the Minister of Health are convening these partners to unlock US$1 billion in investments for primary care.

In low- and middle-income countries, the private sector delivers as much as 60 percent of health services. Often, these ventures are undercapitalized and fragmented. What prevents investors from entering these markets?

This is due to a mix of things. There is often no pooling of demand for healthcare services, like insurance. It’s difficult to predict demand, which reduces the financing appetite of well- capitalized investors. Another challenge is that governments often don’t see private providers as part of the healthcare system and don’t include them in reimbursement schemes. If these governments provided public healthcare services and offered reimbursed healthcare services, they could invest in private providers. =

What incentives does the private sector offer to those making long-term investments in the digital health space?

At the moment there is no clear market, since most countries haven’t developed a coherent digital health strategy. Governments must create demand for a supply that simply isn’t there.

Read the full interview with Jan-Willem Scheijgrond about public-private partnerships by Stephanie Dolan at PSI.