The role of contractual arrangements in improving health sector ...

Jordan
• This contract provided the Ministry of Health with accessible and cost-effective patient care
with acceptable quality standards. It also provides Al-Mowasah hospital with reasonable
return for investment (income) to stay in business and prosper. Thus, the microeconomics of
both parties was improved.
• On macroeconomics level, Al-Mowasah hospital, as other private hospitals, is considered a
national asset. Thus, keeping the hospital in business saves about JD 10 million (the hospital
investment) for the country. The contract helps the hospital keep about 200 employees on the
job. It improves equity and access of insured and uninsured poor patients living in less
advantageous areas in East Amman.
• This type of contracting represents a model for public–private partnership that achieves the
interests of both parties (a win–win model).
• It creates a joint venture partnership between the public and private sectors. It opens the
doors for the Ministry of Health physicians to practise in private hospitals to serve public
insured patients. The contract proves and demonstrates that “public wards” can exist in
private hospitals, changing the traditional model of having “private wards” in public
hospitals. It is an endeavour to bridge the gap between public and private sectors. It creates a
positive atmosphere which both sectors complete, rather than compete with, each other.
Weaknesses and limitations
• The contract was not based on open bidding process. Therefore, other private hospitals,
especially in East Amman, claim that they were not given equal opportunity.
• Some conditions and articles of the contract were general and not stated in explicit terms.
• As other contracts and agreements, it lacks performance indicators to monitor quality of
services.
Figure 4. Net profit of Al-Mowasah hospital after contracting with the Ministry of Health
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