Here’s how to close the $176 billion health financing gap

health finance

(Piron Guillaume, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Matthew Guilford, Co-Founder & CEO, Common Health & Dr. Christoph Kurowski, Global Lead for Health Financing, World Bank Group


The question of how we pay for healthcare has taken centre stage on the global agenda. US presidential candidates are debating concepts like “Medicare for All“. South Africa’s parliament is reviewing its first National Health Insurance bill. Vietnam is exploring new health benefits for people with disabilities. And in September, the world’s leaders are gathering in New York City for the inaugural United Nations High Level Meeting on Universal Health Coverage (UHC).

Is the world on track to meet the Sustainable Development Goal of achieving universal health coverage by 2030?

According to a recent study by the World Bank, the answer is no. On the current trajectory, the world’s 54 poorest countries – home to 1.5 billion people – will face a $176 billion gap in their ability to pay for essential health services. Beyond the human toll of hundreds of thousands of lives lost, uneven health coverage in low and middle-income countries (LMICs) can be a drag on global growth and a source of business risk in our ever-more-interconnected world. Closing the health financing gap benefits everyone, whether you’re at a desk in Mumbai or a doctor’s office in Munich.

The health financing gap will total $176 billion per year in 2030.
Image: World Bank Group

Governments, development partners and non-governmental organizations are critical players in advancing universal health coverage, but they can’t do it alone. As with other big global challenges, the private sector has a critical role to play. Here are three things companies can do, starting today, to ensure noone is left behind.

Going digital

Businesses large and small can help governments collect the funds needed to pay for health coverage by doing something that already makes business sense: going digital.

For starters, companies can embrace the sweeping changes in how consumers are paying for products and services. Advances in “digital financial services” enabled by the reach of mobile phone networks make the goal of universal access to financial services within reach. Neighborhood kiosks and multinational conglomerates alike can use these new platforms to reduce their dependency on cash-based transactions, increasing transparency of business performance, reducing fraud and making it faster and easier to close sales.

There are more opportunities to digitize the back office, too. IT-based payroll processing, accounting and “enterprise resource planning” tools once were reserved for large corporates. Now, a range of new cloud-based services from both start-ups and established vendors are putting user-friendly digital back offices within reach for small and medium-sized enterprises. Combined with new ways of interacting with customers on the front-end, adopting these platforms can reduce the friction companies encounter when paying taxes, helping governments collect the funds to pay for universal health coverage.

What is the World Economic Forum’s Sustainable Development Impact summit?

It’s an annual meeting featuring top examples of public-private cooperation and Fourth Industrial Revolution technologies being used to develop the sustainable development agenda.

It runs alongside the United Nations General Assembly, which this year features a one-day climate summit. This is timely given rising public fears – and citizen action – over weather conditions, pollution, ocean health and dwindling wildlife. It also reflects the understanding of the growing business case for action.

The UN’s Strategic Development Goals and the Paris Agreement provide the architecture for resolving many of these challenges. But to achieve this, we need to change the patterns of production, operation and consumption.

The World Economic Forum’s work is key, with the summit offering the opportunity to debate, discuss and engage on these issues at a global policy level.

Healthy value chains

The multinational companies and platform businesses anchoring our globalized economy can accelerate UHC by working with suppliers to address the health needs of people in their value chains, whether “gig economy” freelancers or outsourced workers.

There is a clear case to be made for investing in the health of people who power businesses, regardless of whether they are formal employees. Companies that provide wellness programs experience decreases in absenteeism and increases in productivity. Investments in increasing health benefits have been shown to have an impact on worker retention as well, and not just for highly skilled office employees.

Companies do not have to shoulder the burden alone. Through clever behavioural nudges like automatic payroll deductions, they can increase adoption of employee co-pays –whereby employees pay a set fee for visiting a doctor, purchasing prescriptions, or receiving other medical services – and other cost-sharing models.

Further, many global brands have acted on the insight that consumers can and will pay more for ethical products, including ensuring the person making their sneakers or jeans has access to quality healthcare. New technologies and new business models can make these choices easy and transparent for customers who want to invest.

Through these and other mechanisms, large corporations can advance the “equity” dimension of health coverage by harmonizing benefits not only for workers within countries, but also across them. They can also help to make coverage more “universal” by protecting people who would otherwise fall through the cracks.

Crowding-in capabilities

Private-sector capabilities, including those developed for other industries, can support transformation in how health insurance operates and how healthcare is delivered, increasing the reach and sustainability of UHC programs.

“Digital first” interfaces and back-end systems can reduce the cost and time required to process insurance claims while providing more transparency to beneficiaries. New models of delivering medical care can extend the reach of services without requiring costly investments in facilities or under-utilized staff. And novel techniques to promote healthier lifestyles and behaviour change can reduce the burden of costly and debilitating non-communicable diseases like diabetes, hypertension and cancer.

A host of new ways are emerging to bring private sector capabilities to bear in addressing public goods like healthcare. Public-private partnerships are being used by many health systems to drive efficiency and accountability. “Blended financing” models combine commercial investments and concessional funding to mobilize resources in support of projects that have strong impact on health but longer payback horizons. And tools such as “development impact bonds” are already being used to incentivize outcomes while giving practitioners flexibility on the methods they use to achieve results.

The goal not out of reach

Closing a nearly $200 billion health financing gap is daunting. Even combined with ramped-up public sector investments, the interventions described above are unlikely to be fully sufficient for delivering coverage for all.

They do, however, represent a recognition the private sector can and must play a part in advancing the ambition of good health and well-being for all, and in developing new approaches for ensuring universal health coverage.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Main results of European Council of 18/10/2018

Tributes for ‘role model’ former UN refugee agency chief, Sadako Ogata

EU4FairWork: Commission launches campaign to tackle undeclared work

5 lessons from China on how to drive sustainable growth

3 reasons why Singapore is the smartest city in the world

Can a Bavarian Oktoberfest beer indulger bring down the Berlin government?

Northern Ireland: Parliament wants to secure post-Brexit regional funding

What if big-tech companies became non-profits?

Gender equality, justice in law and practice: Essential for sustainable development

Poland: attacks on media freedom and the EU legal order need to stop

‘No safe way’ into battle-scarred Afghan city of Ghazni to deliver aid as traumatized children search for parents

The role of medical students in promoting women’s rights

Threat to biodiversity risks a flood of economic ruin

We asked young people about work and skills. Here’s what they told us

‘Severe’ new US asylum restrictions will put vulnerable families at risk, UN refugee agency says

A new global platform to unleash entrepreneurs on the world’s toughest problems

‘12 million’ stateless people globally, warns UNHCR chief in call to States for decisive action

Commission disburses €14.1 billion under SURE to 12 Member States

Is a deal over EU budget possible today?

Reflections on the the biggest refugee crisis since World War II

Knowledge is power: why the future is not just about the tech

These deepwater fish farms could help natural stocks recover

Gas pipeline in the European Union. (Copyright: EU, 2012 / Source: EC - Audiovisual Service / Photo: Ferenc Isza)

EU Investment Bank approves € 1.5bn loan for Trans Adriatic Pipeline (TAP)

Big tech cannot crack down on online hate alone. We need to fund the smaller players

These are the next big products in consumer technology

Macao: EU reports on political and economic developments in 2020

Delivering masks across borders: EU Single Market protecting citizens’ health

Trade and sustainability: Commission proposes new EU Generalised Scheme of Preferences to promote sustainable development in low-income countries

This is the biggest risk we face with AI, by Google CEO Sundar Pichai

Can agroforestry save India’s rivers and the farms that depend on them?

Eurozone: Bankers-politicians rig keeps robbing taxpayers

Who should be responsible for protecting our personal data?

How COVID-19 is ending the stigma of online learning

Bankruptcy or referendum: which one is going to be first?

The time for cities to get smart is now

Bangladesh elections: Hold those responsible accountable for ‘violent attacks and intimidation’

The great sustainable reset: The new world of work after the pandemic

Turning Europe into a giant wind farm could power the entire world

State aid: Commission approves over €1 billion support for high-efficient cogeneration of electricity and heat in Slovakia

Robot inventors are on the rise. But are they welcomed by the patent system?

6 steps every country must take now to prevent coronavirus deaths: WHO Director-General

How universities can become a platform for social change

Why rent controls won’t solve the urban housing crisis

COP24: World sports join team UN in race against climate change

Industrial policy: recommendations to support Europe’s leadership in six strategic business areas

Inaction on obesity stands in the way of sustainable development

European Commission 2020 Work Programme: An ambitious roadmap for a Union that strives for more

One person dies by suicide every 40 seconds: new UN health agency report

International Day of the Midwife: 5 things you should know

Human health – litmus paper for the climate change?

Green Deal: Commission adopts new Chemicals Strategy towards a toxic-free environment

Latin America is a mass-transit powerhouse. But it needs fine-tuning

Australia’s record heatwave: From fainting tennis players to dead fish

This Chilean start-up is revolutionizing reusable packaging

Here’s how to achieve an optimal student/tutor ratio

‘Water-forecasting’ and fish farms fed on waste: how innovation is driving the blue economy

Can medical students be prepared for Global Health ethical issues?

Q&A: A on the EU COVID-19 certificate

‘Virtual Biopsy’ device detects skin tumours in 15 minutes

EU fight against tax-evasion and money laundering blocked by Britain

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s