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October 8, 2025 | 11:00 AM – 5:05 PM ET
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Articles + Publications January 9, 2024
Public-private partnerships (P3s) have recently become a popular tool for the development of public infrastructure projects in the U.S. and across the globe. By bringing together public and private resources, P3s can be used to finance the construction of large-scale projects ranging from highways to airports.
As P3s become more prevalent, there is opportunity for P3s to be used in a broader range of public projects, including those in the health care sector. Public and university hospital systems in the U.S. have, for example, recently used the P3 model for the maintenance and supply of energy systems. Last year, the World Health Organization (WHO) even issued a report outlining steps governments should take to optimize P3 opportunities for health facilities, services, and equipment.
But it remains to be seen whether P3s will become the model of tomorrow’s health care construction industry. Nonetheless, construction firms and public agencies should start considering the benefits of these arrangements and prepare to navigate the additional complexities facing P3s in the health care sector.
What is a P3?
A P3 is a collaborative partnership between a public agency and a private sector organization to finance, construct, and/or operate an infrastructure or other public-service project. From a construction standpoint, this usually involves a construction firm partnering with a public agency and undertaking all or part of the design, building, maintenance, and/or operation of the project, in return for payment — often in the form of tax breaks, collection of tolls or user fees on the completed project, and/or payments from taxpayer dollars.
Key to structuring these arrangements is balancing the risk between the public and private partner. Whether the construction does not go as planned, or the public demand (and source of revenue) for the project is not as anticipated, both the public and private partner are at risk if they have not carefully structured the arrangement. For example, a construction firm may finance and build a toll bridge in partnership with the state’s department of transportation, and then receive payment in the form of the tolls collected from drivers. But if the bridge does not have the anticipated number of drivers crossing it each day, the construction firm could find itself in financial trouble and take a loss on its investment.
P3s and Construction in the Health Care Industry
Whether there is a community need for a new behavioral health facility or simply a modernization of an existing hospital, P3s can enable federal, state, and local governments to pursue essential projects — particularly where financing constraints might otherwise exist.
However, the health care system in the U.S. is unique, and construction firms and government agencies may face greater roadblocks and challenges when implementing a P3 in a health care context, versus in other sectors and industries, including the following:
In summary, P3s hold significant potential for fostering innovation and expanding health care services, as well as offering construction firms more flexibility and the potential for a greater return on investment. However, given the intricate nature of the health care sector, it is crucial for construction companies to consider engaging legal counsel with specialized knowledge in the health care industry before embarking on a P3 project. The health care sector is often subject to greater governmental scrutiny, with stringent laws governing agreements and processes, which may ultimately impact the negotiation and operation of the P3 project.
Speaking Engagements
Tobacco and Nicotine Law and Regulation
October 8, 2025 | 11:00 AM – 5:05 PM ET
Virtual
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September 30, 2025 | 5:30 PM – 8:30 PM ET
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Going Through Withdrawal: Dealing with Multiemployer Pension Plan Withdrawal Liability
September 30, 2025 | 11:00 AM – 12:00 PM CT
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Bond Buyer Infrastructure
September 29 – 30, 2025
Boston Marriott Long Wharf
Leading the energy evolution.
Learn more
From compliance to the courtroom, we have you covered.
Learn more
Helping you focus on what matters – improving human health.
Learn more
Trusted advisors to leading insurers for 100+ years.
Learn more
Unlocking value in the middle market and beyond.
Learn more
Full-service legal advice from coast to coast.
Learn more
Applying radical applications of common sense
Explore More
Our standard-setting client experience program.
Explore more
Delivering life-changing help to those most in need.
Explore More
Our firm’s greatest asset is our people.
Explore More
Market-leading eDiscovery and data management services.
Explore more
The Pepper Center for Public Services
Explore more
Strategies helps businesses and individuals solve the complexities of dealing with the government at every level. Our team of specialists concentrate exclusively on government affairs, representing clients nationwide who need assistance with public policy, advocacy, and government relations strategies.
This unique program provides innovative and affordable opportunities to startups and early-stage emerging companies with a solid technology or scientific foundation. We help companies that have a quality management team in place and do not have other significant legal representation.
eMerge’s lawyers and technologists work together to deliver strategic end-to-end eDiscovery and data management solutions for litigation, investigations, due diligence, and compliance matters. We help clients discover the information necessary to resolve disputes, respond to investigations, conduct due diligence, and comply with legal requirements.
Stay ahead of the curve and in touch with our latest thinking on the issues that are top of mind across our practices and industry sectors.
Change happens fast in today’s turbulent world. Stay on top of the latest with our industry-specific channels.
Take a closer look at how we partner with clients to help them realize their goals.