Health

World’s first Health Impact Bond can save 10,000 women and newborns in India

Utkrisht Impact Bond will ensure financial assistance to 440 small healthcare organisations to improve the quality of maternal and child care in the Rajasthan’s hospitals

 
By Aid & International Development Forum
Published: Tuesday 12 December 2017

Focused on outcomes, impact bonds are an innovative way to finance development using public-private partnerships. Credit: PixabayAbout 0.75 million newborns die every year in India, which is the largest number for any country in the world. Four states—Uttar Pradesh, Madhya Pradesh, Bihar and Rajasthan—alone contribute to 55 per cent of total neonatal deaths in India.

A new Development Impact Bond was announced by Mark Green, the USAID International Development Administrator, with an aim to reduce the number of mother and baby deaths in Rajasthan.

Developed by Merck for Mothers, USAID, the UBS Optimus Foundation and the Hindustan Latex Family Planning Promotion Trust (HLFPPT), it will be the world’s first health impact bond. Named after a Hindi expression meaning “excellence”, the Utkrisht Impact Bond will support implementing partners, the Population Services International (PSI) and HLFPPT to improve healthcare facilities and provide quality health services in the region. The impact bond is expected to save lives of up to 10,000 women and newborns over the next five years.

Focused on outcomes, impact bonds are an innovative way to finance development using public-private partnerships.

The Utkrisht Impact Bond will enable financial assistance for 440 small healthcare organisations to improve the quality of maternal and child care in Rajasthan’s hospitals and adhere to the government’s quality standards.

We need innovative and sustainable financing models to help solve some of development’s vexing challenges -  Karl Hofmann, President and CEO of PSI

The Utkrisht bond partners will receive social and financial gain. For instance, the private capital from UBS Optimus Foundation will cover the cost of developing private healthcare services and facilities in Rajasthan, while the HLFPPT and PSI will help them get certified. The USAID will then pay back the investment “only if the providers achieve certain concrete results” in reducing the number of mother and baby deaths, states Mark Green.

The Aid & International Development Forum will host 4th annual Aid & Development Asia Summit on June 13-14, 2018 in Bangkok, Thailand. About 45+ expert speakers will share an update on regional maternal and child health initiatives in Southeast Asia and lead thought-provoking discussions on how innovations and technology can improve maternal and child health in the region. It is going to be a gathering of 250+ local, regional and global humanitarian and development professionals from NGOs, UN agencies, donors, governments and the private sector with an aim to exchange knowledge, discover success stories, foster innovation and partnerships to assist progress towards Sustainable Development Goals in Southeast Asia.

To learn more about the Aid & Development Asia Summit, visit the website

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