Will a Privatized IJN taking care of the poor?

PM: Take over of IJN only allowed if poor taken care

Published in TheStar Online: Thursday December 18, 2008 MYT 7:38:00 PM

The Government will only allow the private sector to take over the National Heart Institute (IJN) if they fulfilled their responsibilities to the poor, Datuk Seri Abdullah Ahmad Badawi said. Refer to http://thestar.com.my/news/story.asp?file=/2008/12/18/nation/20081218193355&sec=nation for details of news report.

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Would you believe this wishful thinking that, with due respect, Sime Darby will be “genuinely” caring for the poor on a short and long term basis?

They might do it if they are heavily subsided by the government to take care of this charity business. However, at the end of the day, they must be making some profits. Sime Darby may be keen to be a good model of corporation, however, there’s a bottom line on this.

How much would government allow for profit margin of the new private operators without hurting the poor and the rich?

The motive difference between the government and the private sector is big, given that the shareholders of the private corporation are expecting good profits year after year.

How would government ensure that the private owners will fulfill their responsibilities to the poor especially? What guarantee that the corporation will not fail to deliver their promises? It could be too late to rectify if it happens.

Government should restructure the management of the IJN for high efficiency and productivity now instead of privatizing it. If government can rule the country well, I don’t see why they can’t run a hospital with reasonable profit, and grow. The government has all the resources at their disposal; it’s disheartening to hear these hasty and unacceptable excuses for privatizing the institution.

Only a public hospital with the backing of the nation resources can justifiably provide a heart centre for the poor and the rich; on the contrary, a privatized hospital is definitely profit-oriented and our nation is not ready for this type of arrangement yet because of the large poverty gap between the groups of low, middle, and high income.

Public hospital, if run well, can deliver expectations of the public. Privatization is not the magic remedy for cutting costs and service quality; it’s the management skills that make the difference!

Government should encourage private investment in the health business by providing excellent incentives and business environments rather than by eliminating the public-run health institution. I would not object to government for partially privatizing some of the established institutions for a profit in the future years once they have aplenty to be disposed of, and the general public interests are appropriately taken care of.