Supporting the design of USAID’s blended finance strategy in health
May 5, 2019Project details
KOIS developed a health-focused blended finance roadmap for USAID. The roadmap layed out a structured approach for engaging in such transactions in the domain of healthcare. In the scope of this project, KOIS also tested the approach in 3 countries: India, Tanzania and Liberia.Bridging the healthcare financing gap with blended finance
USAID has had a massive impact in the space of global health over the last 50+ years. Yet, an additional annual investment of US$ 371 billion is needed to meet the health SDGs in low- and middle-income countries by 2030, something traditional means alone cannot fulfil.
USAID looked towards innovative finance as an important tool to address these funding gaps. KOIS was engaged by USAID to advise them in developing a roadmap to reach high potential opportunities and build specific solutions that align private capital with development needs in healthcare.
A blended finance roadmap designed for health transactions
As part of this engagement, KOIS developed a blended finance roadmap for USAID. It layed out a structured approach for engaging in health-focused blended finance transactions. This roadmap provided them with a six- step guidance tool to help shortlist appropriate financing instruments for a specific health challenge.
KOIS also tested the approach in India, Tanzania and Liberia.
1. Identify the country archetype
Guide the likely approach to blended finance
2. Define health issues
Frame the problem statement to focus on a specific health issue
3. Prioritize financing challenges
Understand the key financing challenges underlying the health issue
4. Evaluate potential for blended finance
Assess whether blended finance is appropriate
5. Shortlist blended finance instruments
Identify instruments to address financing challenges and match country archetype
6. Identify activities for USAID
Guide the role of USAID in enacting the transaction
Summary of findings in India, Tanzania and Liberia
- Focus healthcare issue: Catastrophic expenditure for tuberculosis patients
- Opportunity identified: Pooled debut fund to provide credit to Micro-Finance Institutions
- Expected impact: Lower TB-linked morbidity and higher cure rates, reduced TB relapse rates, decreased Multi-Drug Resistant-TB burden
- Focus healthcare issue: Inability of faith-based health facilities to provide timely, uninterrupted healthcare services
- Opportunity identified: Creation of a revolving fund within a diocese to provide working capital loans to facilities
- Expected impact: Improved maternal and child health, improved TB and HIV indicators
- Focus healthcare issue: Limited patient ability to pay for healthcare services
- Opportunity identified: Creation of insurance scheme with donor co-pay (linked to treatment adherence)
- Expected impact: Improved maternal and neonatal mortality ratios
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