Abstract-Public-private partnerships (PPPs) seek to expand access to quality health services in ways that best leverage the capacities and resources of both sectors. There are few examples of PPPs in the hospital sector in developing countries, and little is known about how the involvement of the private sector transforms the delivery of health services in this context. In 2006, the government of Lesotho adopted a PPP approach for the health sector, contracting out to design, build, and operate a hospital network in its capital district. This case study examines differences between a government-run hospital and the PPP-run hospital that replaced it, using in-depth interviews with key informants, observation of management systems, and document review. Key informants emphasized changes in infrastructure, communication, human resource management, and organizational culture that improved quality and demand for services. Important drivers of improved performance included better defined policies and procedures, empowerment and training of managers and staff, and increased accountability. Well-functioning support systems kept the hospital clean and equipment functioning, reduced stock-outs, and allowed staff to do the jobs they were trained to do. The Lesotho PPP model provides insight into the mechanisms by which public-private partnerships may increase access and quality of care.
Keywords: DBSA, Development Bank of South Africa; ICU, intensive care unit; IFC, International Finance Corporation; Lesotho; MOH, Ministry of Health; NICU, neonatal intensive care unit; OECD, Organization for Economic Cooperation and Development; PPP, public–private partnership; QE II, Queen Elizabeth II; QMMH, Queen ‘Mamohato Memorial Hospital; delivery of health care; developing countries; organization and administration; public–private partnerships; qualitative research.