1.2 Key Activities
The following are the expected activities in this step:
• conduct of a market study (or a full-blown feasibility study, if needed or desired);
| Box 1.2: Documents Created for Step 1 In Step 1, the local governments of Sarangani and Camarines Sur prepared the following documents: |
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| (i) Work Plan-road map toward preparing the business plan (ii) Request for Information-data checklist for preparation of the business plan (iii) Public-Private Partnership in Hospital Management Business Plan-completed business plan, which includes an estimation of capital, a guide to computing minimum capital, bond amounts, etc. (iv) Weighted Average Cost of Capital-suggested calculation of the weighted average cost of capital (to estimate the minimum required return on equity of companies engaged in hospital services) (v) Suggested Cost-Benefit Approach-guide to quantifying the social values of the project from the organization's point of view | |
• development of a business plan;
• consultations or focus group discussions with all stakeholders, including affected sectors and people (more discussions on this are in Step 2); and
• review of policies on PPP, PPP in health, hospitals, drugs and medicines, and if applicable, policies on environment, gender, indigenous peoples, and other social safeguards.
As earlier mentioned, an organization that hopes to develop and implement a PPP in hospital management should first conduct a market study to determine if there is a strong need for such an enterprise or project. For example, a perceived inefficiency of public health care services is not enough to establish a PPP in hospital management. The organization should also develop a strong understanding of the hospital services in the locality, the needs of its people, and its capacity to implement a PPP. Notes on the conduct of a market study are shared in Box 1.3.
Market studies are undertaken for different purposes, and the data collection methods to be used depend on the particular purpose and the type of information needed for the planned enterprise. (Annex 3 contains more detail on market studies. Additional notes on the development of a feasibility study are in Annex 4 while the likely tasks required in the development of a business plan are discussed in Annex 5.)