Innovative Finance

A lack of money in the health markets of developing countries means new ways of financing are needed. Mobile technology allows us to identify and directly reach the most vulnerable.

Sharing burdens across income groups, through risk pooling and risk distribution, is an important aspect of health financing. With a focus on reacting to and anticipating opportunities in the market, the Joep Lange Institute continues to test new digital financing solutions, such as health impact bonds, peer-to-peer remittances, new types of risk pools, and other forms of facilitated solidarity.

The root problem for Africa’s poorest patients is that they struggle to pay for medical treatment, and funding is often not available through public channels. We are working to define an innovative finance mechanism to address this issue.

As in the early days of HIV/AIDS treatment, we intend to demonstrate that patients can be treated effectively and affordably, while avoiding abuse or diversion of the drugs.

By proving its capability, we refinance the programme and scale it up. We want to change the discussion, from one focusing on practical obstacles to one of political will. Are we willing to let patients die when they can be effectively treated at an affordable cost?

The mobile phone’s growing role in day-to-day financial services, and the transparency it brings, also presents new opportunities for innovative financing products. It allows us to reach people directly with funding for the right treatment through digital health insurance, vouchers for HIV/AIDS treatment, and other health benefits.