This step will give an organization a clear understanding of the hospital industry in the locality and help it to decide if it needs and can implement a PPP in hospital management. This also helps it determine the coverage of the prospective PPP: for example, will it begin as a one-hospital enterprise or cover a whole province or district? In the Philippines, local governments usually manage several hospitals, which often include a provincial hospital and several district hospitals. Therefore, another possibility to consider is the management of a hospital system which, though more complex, may have advantages for the province like economies of scale in terms of supplies or service quality standards.
The results of the market or feasibility study, the political will of the local leaders, and the interest of the private sector will all be of great benefit in determining the coverage and even the type of modality to be used.