Public/Private Mix: An Alternative Funding for Public Hospitals in Developing Countries: A 5-Years' Experience at Muhimbili Orthopaedic Institute, Dar es Salaam, Tanzania.

Background:The economic deterioration and structural adjustment policies of the 1970's and 80's had a particularly negative impact on social services especially health and education in most developing countries. In Tanzania at the height of this period the Government could meet only 10 - 20% of the recurrent budget needs of its hospitals. In 1996 the government of Tanzania passed the first Parliamentary act empowering a public health institution to attend private patients.
Methods: A review of the source of funding at the Muhimbili Orthopaedic Institute over a 5-year period between 1997 and 2001 inclusive was done.
Results: Muhirnbili Orthopaedic Institute experience showed that it is possible for public institution to practice private-public mix. Private patients constituting only 30% of outpatients and 5% of inpatients generated 77% of Institute's income, which was about 35% of the total income of the Institute.
Conclusion: Private-public mix when carried out properly in hospitals offers enormous advantages in bridging the gap between actual budgets of Institutions and what governments in developing countries are able to give public hospitals.