Universitas and Pelonomi Hospitals co-location PPP in Bloemfontein

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Netcare and the Free State Department of Health signed in 2002 a 21-year concession agreement under which Netcare undertook to upgrade two public hospitals and rent space to establish private hospitals within those facilities. Through their agreement, Netcare utilizes spare capacity within the two Bloemfontein-based hospitals, effectively co-locating private facilities in a public healthcare venue. Netcare made the capital outlays required to upgrade the two hospitals, including physical infrastructure, fittings, and equipment. In addition, Netcare pays monthly fees for the previously unused space. The government receives a monthly rental, and a percent of the private hospital's monthly revenue. The hospitals covered under the concession agreement are large academic hospitals, including Universitas Hospital (90 beds) in Bloemfontein and Pelonomi Hospital (133 beds) in nearby Pelonomi township.

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