Innovation through Public-Private Partnerships in the Greek Healthcare Sector: How is it achieved and what is the current situation in Greece?

ABSTRACTPublic Private Partnerships (PPPs) constitute a partnership with many different applications in the social sphere, in healthcare as well. Some European countries were pioneers in establishing these new forms of cooperation. Greece was one of the countries that followed suite. The aim of this paper is to discuss the case of public-private partnerships in the Greek heath care sector, as well as the impact of this entrepreneurial activity to the development of innovation. The primary focus of this paper is to provide a complete and updated picture of the institution of the PPPs and to evaluate PPPs as an alternative means of production of public works and services. Furthermore, this study attempts to compare the implementation of the PPPs in several projects across different European countries and provide an overview of the Greek experience of the PPPs. Finally, the evaluation of the institution of the PPPs along with suggestions for future action aimed at profit maximization, better utilization of the projects and maximization of social benefits are made, taking under consideration the ever-increasing demands and special socio-economic circumstances of our contemporary society.Keywords: Public-Private Partnerships, Innovation, Entrepreneurship, Healthcare sectorIntroductionPublic Private Partnerships (PPPs) constitute a partnership between many different applications in the social sphere, in healthcare as well. Some European countries were pioneers in establishing these new forms of cooperation. Greece was one of the countries that followed suite. Currently, Greece is experiencing a bloom in these forms of partnerships for a number of reasons. First, a determining factor has been the dysfunction of the public sector. The big lag and the inability to move flexibly and monitor developments were crucial. Budgetary constraints imposed on the healthcare sector necessitated outsourcing many of the services provided by the public sector, especially in the domain of hospital care, which takes up the largest share of the total health expenditure in Greece. The Greek NHS has deteriorated due to the way compensation of health services is an underestimation of the actual cost of services, the lack of real budgets, as well as the deficiency of credible policies, cost control, and cost containment (Tountas et al, 2002).The Greek Health System was originally developed in early 1980s, but since then minor improvements and reforms took place, until the early 2000s. Several disadvantages emerged that governments were not able to turn into opportunities for improvement due to integral weaknesses, such as characteristic slowness and inflexibility. Under these conditions, the prospect of PPPs seemed to be an efficient mechanism for the Greek governments to move forward, surpassing obstacles in order to develop and provide quality health services. The idea behind PPPs is, in this case, to create centres of medical care in the way that public knows how to use. Such investments create modern hospitals that are able to provide high quality medical services with a view to containing costs. Through PPP projects, new jobs are created, leading to the reduction in the ratio of unemployment, which is, especially now, an important shortcoming in the growth of the Greek economy. In the case of Greece, the government is definitely interested in attracting foreign capital inflows, as a way to escape from the vicious circle of continuous recession, boosting productivity, and hence achieving growth. Magnetizing funding from large investment houses is crucial and increasingly challenging in this fierce and competitive global environment, considering that Asian countries is an additional threat, as they attract the interest of investors, guaranteeing multiple tax breaks and low wages.The main aim of this paper is to examine the case of public-private partnerships (also known as PPPs) in the Greek heath care sector, since their first introduction to the country with the ratification of the law act 3389/2005, as well as discuss the impact of this entrepreneurial activity on the development of innovation. …

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