ABSTRACT Objective To evaluate the cost–benefit of a PPP (Public Private Partnership) model -mortgage model- compared to traditional budgeting method funding models based on traditional public budgets (TM). Methods The economic-financial evaluation of the construction has been carried out under the PPP model of a hospital in the Northern Galicia–Portugal–Euroregion by performing a simulation analysis. This comparison involves an analysis of the life project, expressed in terms of net present value (NPV) of the costs and benefits of the project proposed compared to the costs and benefits of the provision of the service by the traditional budgeting method (TM). A simulation analysis has been also performed. Results The PPP (Public Private Partnership) project does not offer more value for money than the traditional budgeting funding model (Public Budget –TM-) – defined as an alternative to the public sector for the provision of the same services. Conclusion The best option would be the creation of a public company (Public Society of Investment –SPI-) to finance the construction and commissioning of the hospital.
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