Tuesday 24 March 2015

Overcoming The Limitations of Private Practice in the Developing World



Private Medical Practice or simply Private Practice is defined as healthcare and medicine provided by entities other than the Government. Medical services in any country can be provided by:

·        Government
·        Non-Governmental/Not-for-profit organizations
·        Private (for-profit) Organizations

Private Practice falls into the third category. Private Practice involves the provision of medical services by an individual or group of individuals to the citizenry with the aim of meeting their health needs while maximizing Owner’s wealth in the process.
Despite the inherent potentials of private practice in the developing world, several factors have limited its growth.

1.     Inadequate Regulations:
I personally believe that this is the greatest problem plaguing the private sector in Nigeria and other developing nations. Most private hospitals do not meet minimum standards of practice because the regulatory bodies have been unable to perform their duties. Though there is an improvement in regulations in many of the urban areas, most rural areas are still poorly regulated. As a result of inadequate regulations, many patients are forced to receive poor health services in substandard facilities at the risk of their lives. 

The solution to this anomaly is quite obvious. There should be better regulation and supervision of health facilities by the relevant bodies across the urban and rural areas. This will ensure that only qualified personnel are allowed to man well equipped hospitals.

2.     Low Capital Base:

The private sector usually struggles with funding.  Many Hospital entrepreneurs fund their hospitals from personal savings and operate on a shoe string budget as shown above. This provides a small initial start-up capital for many private hospitals making it difficult for the proprietor to provide basic facilities or to improve on current standards. This low capital base also makes it difficult for private practitioners to employ qualified and experienced personnel.

To overcome this limitation, entrepreneurs and investors in developing countries should be encouraged to invest in the health sector. Banks and other financial institutions can also provide long-term funding to doctors who are willing to go into private practice.

3.     Poor Infrastructure and Equipment:
Infrastructure is often inadequate in private facilities. Key equipments may also be lacking. This poses a setback to the operations of private practitioners. It is hoped that with the infusion of more capital, the health sector can also overcome this limitation.

4.     Low Staff Quality:
Hospital personnel in private practice are often of poor quality. Most do not have proper training to fulfill their role in healthcare delivery. This is because Public hospitals pay higher wages and qualified personnel will naturally work for higher wages. This leaves only poorly trained and unqualified personnel for the private hospitals to choose from. 

Solving this problem may lie in the formation of larger hospitals by two or more doctors of like minds. These larger hospitals will have more resources and may be able to compete favorably with government facilities in the labor market.

On a final note, the limitations listed above can actually be overcome if physicians look towards Group Practice and Partnership. The present trend of sole proprietorship has being a setback to private healthcare development in Africa. It is time for physicians to put aside their egos and come together to form partnerships that will provide quality healthcare to the populace.


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