The roles of Managed Equipment Services in Kenya in supporting the contribution of the private sector to healthcare
Health is a part of the United Nation sustainable development goals (SDGs). Nevertheless, not all countries, whether rich or poor, can afford to treat all their citizens with whatever health facilities they need. Therefore, the private sector should be able to contribute to closing the healthcare gap as it will provide financial sources, innov Vivation, and expertise.
One of the ways to do so is through the managed equipment services (MES) arrangement as is employed in Kenya. ES is a new paradigm in the healthcare industry in Kenya which entails collaboration between the investor communities and the government owned medical institutions that provides alternatives to some of the challenges to the dynamism in the healthcare industry.
So, Question: What is MES?
An MES arrangement can be used to provide modern health infrastructure, equipment and/or services to public hospitals over an agreed period with payment being made regularly and in pre-agreed amounts on the basis of agreed performance parameters. As opposed to the enormous capital expenditure that would be otherwise incurred in constructing or equipping hospitals, MES arrangements provide public entities with the prospect of utilizing expenses incurred over a contract period intercourse, hence the possibility of long-term and sustainable budgeting.
MES experience in Kenya
The main aim of the Strategic Investment Plan of Kenyan Ministry of Health is to take the coordination of collaboration to the private sector towards the creation of a responsive and sustainable health care system. Thus, Kenya is leading a major and sustainable medical installation encompassing the delivery, maintenance and service of the state of the art and the medical equipment in the approximately 98 hospitals that have been utilized in the MES model.
There are critical points in the process of procuring and choosing Kenyan MES contractors that include the following:
Number of health facilities: MES program covers about 98 health facilities of the country.
Bidding in lots: The equipment within the MES arrangement was bid in lots which contained distinct types of equipment, e.g. radiology isolate, ICU, renal, etc. Bidders were allowed to bid on one or more of the lots and each bidder was to be expected to supply, install, test and commission equipment as well as perform the maintenance, repair, upgrades, and replacement on the same base during the contract life at a pre-determined fee on a standard interval that was to be paid.
OEMs: The tender was limited to OEMs to have the state of the art equipment at no added cost of middlemen.
Training: the MES setup included on the job user/maintenance training, specialized training, and clinical training in specified areas.
Lessons learned
- The MES Project was the pioneer project of its kind in Kenya hence it was necessary to take into consideration the opinions of all stakeholders in the preparation and execution of the project.
- The MES arrangement also necessitated the health workforce to be sufficient and well trained so as to ensure sustainability in healthcare.
- Perfect management of contracts was also a hallmark of maintaining a high degree of efficiency in order to deliver anticipated health benefits. The responsibility and risk management helped both the reasonable duty of the public and the entities in the private sector.
- Performance monitoring was essential to the MES arrangement because it was used to determine the payments made (and deductions of payments) in accordance with the contract.
- In the event that there was no adequate capacity available in a procuring entity, refined transaction advisors were essential to assist it in the process of developing and contracting the MES arrangement. The competitors in the MES industry tend to seek the best advisory services when it comes to such a transaction. It is critical to not leave out the public procuring entity when it comes to developing and negotiating a deal that will satisfy both the sides and help the latter to achieve its goal of providing sustainable healthcare.
Innovative healthcare financing strategies should be developed to overcome the challenges that exist in the provision of healthcare services so as to achieve sustainable development. The MES model used in Kenya presents one of such opportunities to do so.
Disclaimer: The views and opinions expressed herein do not state or reflect those of The Heayes Group, its Board of Executive Directors, staff or the governments it represents. The Heayes Group is not responsible for the accuracy of the data, findings or analysis of this post.