Spanish healthcare Public Private Partnerships : the ‘ Alzira model ’

Global infrastructure reports suggest that, in the wake of the fiscal crisis, healthcare Public Private Partnerships (PPPs) are seen as a growing area as governments switch attention to social welfare projects. Spain is unique in having had a PPP hospital in operation for over a decade which is funded through a capitation fee. This paper takes a critical approach to evaluate the project, with our analysis showing that the original project could never have been viable and that the renegotiation of the contract has been costly to the government. We call into question the role of the Spanish savings banks in financing this type of project, which has now been replicated with further hospitals in Spain and Portugal, as well as in developing countries such as Lesotho.