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October 26, 2023

2 minutes

Start research into innovative financing for preventive healthcare

To ensure the future of healthcare remains affordable, accessible, and sustainable, Invest-NL invests in healthcare innovation through capital, market development, proposition guidance, and financial product development. One of the key pillars in this effort is addressing healthcare inequality, which contributes to the fact that life expectancy for individuals with a minimum income is lower than that of the rest of the Netherlands.

Although appropriate care, primarily preventive healthcare, can offer a solution to this, the healthcare sector is confronted with a 'wrong pocket problem' and cash flow issues, making preventive healthcare challenging to finance. The GelijkGezond Foundation takes the initiative, in collaboration with local healthcare providers such as general practitioners, district nurses, social district teams, and mental health specialists, to deliver preventive healthcare. GelijkGezond's goal is to provide assistance to individuals with a minimum income, aiming to reduce the disparity in life expectancy between the highest and lowest income groups. This is also expected to result in savings on healthcare costs.

The Health Impact Bond (HIB), an alternative financing instrument, is seen as a potential solution to make prevention financially viable. Initially, an investor funds the implementation of preventive healthcare. Agreements are then made with governments and/or insurers (payers) regarding the eventual repayment of the HIB based on the cost savings in healthcare. The HIB helps increase access to the necessary healthcare for more people. This initiative is supported by Invest-NL and aims to find a solution for financing preventive interventions in healthcare, which can lead to both short and long-term reductions in healthcare costs. Invest-NL intends to prepare the GelijkGezond proposition for scaling up using the 'First Time Right' approach so that Health Impact Bonds can be applied at a national level. Partners in this project include GelijkGezond, Noaber Foundation, and Social Finance NL, with municipalities and Dutch health insurers also participating in discussions.

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Stanleyson Hato

team lead Life Sciences & Health

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