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3.1.4 THE DEVELOPMENT OF PUBLIC-PRIVATE
PARTNERSHIPS IN HONG KONG

The Government has been purchasing services from the private sector to decrease public-
private segmentation, relieve the service burden on the public sector, and improve timelier
access to healthcare services (Table 3.3). To lay the context for existing purchasing initiatives
in primary care, we first discuss the development of public-private partnerships (PPP)
in Hong Kong.

Figure 3.4

Key milestones in PPP development in Hong Kong

• “Your Health, Your Life” Consultation Document received positive public responses from the
public on the direction of promoting PPPs in the provision of healthcare services
2008

• Chief Executive announced in Policy Address that the Administration will administer pilot PPPs
2009

• Financial Secretary established the PPP Endowment fund (HKD 10 billion endowment fund +
HKD 442 million from the remaining balance of the one-off designated funding by the former
2016 Government)

• The HA established eight new PPPs to cope with delayed cases due to the COVID-19
pandemic and increased public sector burden
2020

The notion of promoting PPPs in the provision of healthcare services set out in the 2008
consultation on health financing received positive responses from the public. Whilst believing
that PPPs could enhance the cost-effectiveness of health service delivery and shorten
queues in the public healthcare sector, various concerns were raised, ranging from the need
for proper monitoring and transparency under the PPP models, to the potential for PPPs to
fuel unfair competition between public and private service providers (FHB, 2008b).
Nevertheless, PPPs started to root itself in the healthcare sector of Hong Kong in the
last decade.

In the 2008–2009 Policy Address, the Chief Executive announced that “to redress the
serious imbalance in the provision of public and private healthcare services”, a series of pilot
measures to promote PPPs will be implemented. In particular, the Policy Address highlighted
key directions of PPPs such as purchasing primary care services and hospital
services from the private sector and subsidising the public for preventive
care provided by the private sector (FHB, 2008b).

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