Annual integrated report 2011

Public Private Partnerships

Netcare believes that Public Private Partnerships (PPPs) offer a sustainable model that can improve and support government healthcare infrastructure and delivery, while addressing existing health inequalities.


Netcare’s considerable PPP experience in the United Kingdom (UK), working with the National Health Service (NHS), stands Netcare SA in good stead in this regard.

In southern Africa, Netcare’s seven PPPs under management include:

  • Universitas and Pelonomi hospitals (Community Hospital Management);
  • Port Alfred and Settlers hospitals (Nalithemba);
  • Lesotho Hospital (Tsepong);
  • UCT Private Academic Hospital (UCTPAH); and
  • Bronkhorstspruit Hospital.

Netcare’s experience in PPPs started with the use of public healthcare sector beds in Bronkhorstspruit in 1997, which is ongoing. In 2002, Netcare joined a consortium of partners in acquiring the UCTPAH, a private facility and training hospital in Cape Town. Thereafter Netcare established a co-location PPP agreement with the Free State Department of Health (DoH) in 2003, the first PPP of its kind in SA. The PPP allows Community Hospital Management to utilise spare capacity within Bloemfontein’s Universitas and Pelonomi hospitals.

Port Alfred and Settlers hospitals PPP

The Port Alfred and Settlers hospitals PPP with the Eastern Cape DoH were completed in 2009.

The Port Alfred Hospital, which opened in March 2009, was rebuilt from the ground up and offers both public and private facilities. The private facility features 31 beds, including a four-bed maternity unit with a specialised neo-natal intensive care unit (ICU) and a two-bed high care unit.

The refurbishment and upgrading of the Settlers Hospital in Grahamstown was completed in August 2009. The private facility has 32 beds including a maternity ward with a specialised neo-natal intensive care unit and a six-bed ICU/high care unit.

Specialist services are offered at the hospitals by full-time and visiting specialists.

Netcare provides facility management and soft services such as catering, cleaning, linen and laundry, pest control, garden and estate maintenance, security, and the maintenance and replacement of equipment at both hospitals.

The private vehicle for the partnership is Nalithemba Hospitals, which is responsible for managing both the public and private hospital facilities for 15 years.

Lesotho PPP

Outside SA, Netcare led a consortium of partners in building the new public hospital for the Government of Lesotho, the largest healthcare PPP in Africa to date. The PPP involved constructing a new 425-bed referral hospital (390 public beds and 35 private beds) in Maseru, and an onsite Gateway Clinic as well as three filter clinics in a seven kilometre radius around the hospital. Likotsi filter clinic was newly built and Mabote and Qoaling filter clinics were refurbished.

The Queen ‘Mamohato Memorial Hospital and gateway clinic commenced operations in October 2011. The hospital and gateway clinic are now fully operated by Netcare, including both clinical and non-clinical services, representing an innovative approach to providing integrated, outcomes-based quality healthcare in Africa. The new hospital replaced the Queen Elizabeth II Hospital and will dramatically improve the quality of healthcare in Lesotho.

The Likotsi, Mabote and Qoaling filter clinics opened in May 2010. These comprehensive primary care clinics operate with the support of a special Medicross team that provide management support to the Lesotho staff that are employed at these clinics.

Netcare will operate the hospital, which includes the provision of clinical services, for a contract period of 18 years.

“Thanks to the innovative PPP structure… patients will have access to greatly improved medical services and care, but pay the same minimal charge they currently do at any other public hospital in Lesotho... For the people of Lesotho, however, this day marks so much more. It represents improved healthcare access, a vision that we have long held dear.”

Dr Mphu Ramatlapeng, Minister for Health and Social Welfare – Lesotho