Testing a Public Private Partnership Model

A form of a long-term contract between a government and one or more private entities, through which they partner to provision public services.

Why a PPP Business Model is valuable to your business:

  • High volume growth
  • Expand share
  • Deliver measurable social impact, positive association
  • Long tender process
  • High upfront costs typically
  • Ownership typically transfers to government at end of contract
  • ROI of investment, risk/return vs. financing offer
  • Projected NPV based use in longer term contract
  • Customer lock-in

Why a PPP Business Model is valuable to your government customer:

  • Less IT infrastructure and support needed
  • Share risks with the private sector
  • Access later technology that gov't cannot afford to purchase outright
  • Total cost of ownership
  • Increase in public benefit (e.g. specific quality measures or biomarker outcomes)

PWC's Healthcare public-private partnerships series, No. 4

Companies participating in PPP models:



GE Healthcare



Novo Nordisk


KPIs of a PPP Models are often at the discretion of government tender offers, though innovative companies can initiate the idea.


PPPs are seeing growth as countries strive for healthcare stretch goals

PPPs operate on a long term basis. Learn the different models of PPP when considering this path.


Key interview questions to validate a PPP model:

Before you consider the PPP model:

  • Has the government process determined a direct need for our solution, or do we have to partner with other groups to fit the discrete tender?
  • What are the core jobs to be done in the government sector that can be best served by our company?
  • What's the comparison of our solution to baseline for delivering measurable healthoutcomes
  • Can we profitably deliver at scale?

    When testing the solution:

    • What would partnership look like, if we need partners?
    • Determine if different government types (local, regional, national) easier or harder to serve?
    • Is it possible to imagine an MVP prototype? Can one be built into the tender offer?
    • Can you design an MVP that has high usage and engagement with a minimal feature set?
    • Is there a secondary business model to help us mitigate risk?
    • What is the risk:return ratio? The NPV of this project?
          • Example test cards (Osterwalder's Value Proposition Design)