Pakistan outsources major hospitals to boost revenue
ISLAMABAD, PAKISTAN — The federal government of Pakistan is moving forward with plans to outsource major federal hospitals as part of a broader strategy to reduce financial strain and generate revenue.
Hospitals under consideration for outsourcing include the Pakistan Institute of Medical Sciences (PIMS), Polyclinic, CDA Hospital in Islamabad, Sheikh Zayed Hospital in Lahore, and Jinnah Postgraduate Medical Complex in Karachi.
Additionally, several dispensaries across the country are included in the proposal.
Government plans to outsource key federal hospitals
The initiative aims to adopt a public-private partnership (PPP) model or award extendable contracts to private entities for managing these facilities. The outsourcing is expected to alleviate the financial burden on the federal budget, which currently allocates approximately Rs10 billion (US$36 million) annually to these hospitals.
According to reports, PIMS alone requires around Rs3 billion (US$10 million) each year for maintenance and operations.
The federal government hopes that outsourcing management will allow it to redirect a significant portion of these funds toward expanding healthcare services for low-income patients while improving operational efficiency and service quality.
Reducing financial burden through public-private partnerships
The PPP model is designed to bring in private-sector expertise and investment, which could help modernize hospital infrastructure and improve service delivery.
Under this initiative, the outsourcing of CDA Hospital in Islamabad has already begun as a pilot project. Officials believe that similar arrangements with other hospitals could significantly reduce the government’s financial burden while ensuring better healthcare outcomes.
Medical tourism at the heart of revenue strategy
One key aspect of this plan is to transform federal healthcare facilities into hubs for medical tourism. By partnering with private entities, the government aims to generate additional revenue that can be reinvested into public health initiatives.
Officials estimate that, if managed properly, healthcare facilities in Islamabad alone could generate between Rs80-100 billion (US$288 million to US$369 million) over five years.
The government is also considering high-rise developments within hospital premises, particularly at PIMS, which has ample space for expansion. These developments could attract international patients seeking specialized treatments, further boosting revenue through medical tourism.
Outsourcing aims to improve healthcare and boost economy
This move is part of broader healthcare reforms aimed at ensuring long-term sustainability for Pakistan’s federal hospitals. By adopting a PPP model, the government hopes not only to reduce its financial burden but also to improve healthcare quality through private-sector involvement.
Officials remain optimistic that with proper quality assurance and strategic implementation, this plan could significantly boost revenue while enhancing healthcare access for all citizens, particularly those from low-income backgrounds.
Pakistan’s similar efforts in hospital outsourcing
In 2022, Pakistan’s Khyber Pakhtunkhwa (KP) province also embarked on a similar initiative by outsourcing the operations of 58 local hospitals to private companies. This decision, led by KP’s Health Department, aimed to enhance patient care by transferring human resources, medicine supplies, equipment provisions, and emergency services management to third-party firms.
Officials emphasized that this development was crucial in ensuring that health services reached even the province’s “far-flung and hard-to-reach areas.” This model has already shown success in improving service delivery in underperforming hospitals and could serve as a blueprint for similar efforts nationwide.
