This session is part of a 4-session USAID submission for side-sessions on Financing, Policy, Service Delivery, and HIV/AIDS. This session focuses on Financing.
In 2016, WHO estimated the funding gap to achieve the health SDGs in low- and middle-income (LMICs) to be approximately $134 billion. WHO expects this gap to increase threefold by 2030. Countries need additional resources to finance growing demand for health care coupled with commitments to achieve universal health coverage, rising costs of the services, and declining donor commitments. In response, recent focus by the global health community has been on increasing government resources for health to pay for infrastructure, human resources, medicines and commodities across the health system.
At the same time, governments and other stakeholders perceive that the private sector can help serve the public good by increasing access to more, and more responsive services; managerial talent; technology and innovation; and funding and investment. They recognize that the private sector is an important source of health care – even for the poor. Thus resource mobilization for and investment by local companies and investors in private sector health care has emerged as an important topic in LMICs. This includes growing interest to expand blended financing initiatives and new, innovative approaches that stimulate private sector investment in health. The question of whether such strategies are feasible, and how we can best engage the private sector remains open for debate.