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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:

Benefits
  • High volume growth
  • Expand share
  • Deliver measurable social impact, positive association
Challenges
  • Long tender process
  • High upfront costs typically
  • Ownership typically transfers to government at end of contract
KPIs
  • 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:

Benefits
  • Less IT infrastructure and support needed
  • Share risks with the private sector
  • Access later technology that gov't cannot afford to purchase outright
Challeges
KPIs
  • Total cost of ownership
  • Increase in public benefit (e.g. specific quality measures or biomarker outcomes)
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PWC's Healthcare public-private partnerships series, No. 4

Companies participating in PPP models:

Cisco

Factual

GE Healthcare

IBM

Novartis

Novo Nordisk

Sanofi 

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

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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.
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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)

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