Pre-workshop Session 2:
Overview of Global Health Market
February 10, 2016
Today’s story
•  Challenges & opportunities
•  Current trends
•  Useful ideas for action
Global health
•  Public health challenges with scope &
influence beyond national borders
•  Solutions require inter-disciplinary
approach
– Biomedical sciences
– Social & behavioral sciences
– Engineering
– Business & economics & finance
– Others
Current situation
•  Donor-dependent in low income
countries
•  More public funding for middle income
countries (e.g. BRIC)
•  Uneven financing (HIV, malaria, TB)
•  Lack of access to affordable & quality
services for those who need most
Global health innovation
Source: scottberkun.com; G. Pinchot
Significant positive impact.
To create and bring into use sustainable
new products, processes, services, and
ways of doing business.
Bring innovation into use
•  Availability
•  Affordability
•  User acceptability
•  Adoption
Reaching end-users
(or customers)
Segments & Challenges
Rural poor
Urban/peri-
urban poor
Urban/peri-
urban middle-
income
Urban/peri-
urban high-
income
Healthcare
delivery
Volume
Infrastructure
Price
Quality for cost
Infrastructure
Price
Quality for cost
Infrastructure
Infrastructure
Medical
technologies
& supplies
‘Last mile’
Volume
Price
Price Price
Financing
model
Information
Price
Information
Price
Information
Logistics &
Distribution
Last mile
Volume
Infrastructure
Volume
Infrastructure
Infrastructure
Source: Strengthening health system through private investment, Calvert Found et al. 2015
Adaptation to market
Product
or
Service
Team
Market
Health	
  System	
  
Validate P/S
Increase interest &
demand for P/S
Introduce & sustain P/S
1
2
3
Key stakeholders
PublicPrivate
Policy
makers
Delivery
system
Global
donors Technical
assistance
Delivery
system
Entrepreneurs
Multi-national
corps
Investors
Global health value chain
Credit: noun project
Patient
Provider
Healthfacility
District
distribution
Zonal
warehouse
CentralMedical
Store
Govt.
procurement
agency
Partner
procurement
networks
Retailers&
Wholesalers
Foreign
vendors
Manufacturers
Suppliers
R&D
Sourcing Use
Supporting functions: R&D, infrastructure, talent, business services, etc.
Policy & regulation: standards, law, norms/practices, etc.
Recent trends
•  Growing middle-class & more
sophisticated consumers
•  Burden shift to non-communicable
diseases
•  Better access to technology &
information
•  Growing interest from private investment
•  Push toward universal health coverage
Health system
Subsidized	
  models	
   For-­‐profit	
  models	
  
Public	
   Private	
  
Public	
   Private	
  Social	
  
Finance	
  Delivery	
  
Adapted	
  from	
  Taking	
  Innova+ons	
  to	
  Scale,	
  R4D,	
  2013.	
  
Potential partnerships
Public Social Private
•  Policy	
  
•  RegulaGon	
  
•  Standards	
  
•  Access &
insights to key
segments
•  Information &
education
•  Pool demand
•  Market-based
solutions
•  Efficient
delivery
system
Thank you
P/S Innovation
+
Sustainability Innovation

Overview of global health market

  • 1.
    Pre-workshop Session 2: Overviewof Global Health Market February 10, 2016
  • 2.
    Today’s story •  Challenges& opportunities •  Current trends •  Useful ideas for action
  • 3.
    Global health •  Publichealth challenges with scope & influence beyond national borders •  Solutions require inter-disciplinary approach – Biomedical sciences – Social & behavioral sciences – Engineering – Business & economics & finance – Others
  • 4.
    Current situation •  Donor-dependentin low income countries •  More public funding for middle income countries (e.g. BRIC) •  Uneven financing (HIV, malaria, TB) •  Lack of access to affordable & quality services for those who need most
  • 5.
    Global health innovation Source:scottberkun.com; G. Pinchot Significant positive impact. To create and bring into use sustainable new products, processes, services, and ways of doing business.
  • 6.
    Bring innovation intouse •  Availability •  Affordability •  User acceptability •  Adoption Reaching end-users (or customers)
  • 7.
    Segments & Challenges Ruralpoor Urban/peri- urban poor Urban/peri- urban middle- income Urban/peri- urban high- income Healthcare delivery Volume Infrastructure Price Quality for cost Infrastructure Price Quality for cost Infrastructure Infrastructure Medical technologies & supplies ‘Last mile’ Volume Price Price Price Financing model Information Price Information Price Information Logistics & Distribution Last mile Volume Infrastructure Volume Infrastructure Infrastructure Source: Strengthening health system through private investment, Calvert Found et al. 2015
  • 8.
    Adaptation to market Product or Service Team Market Health  System   Validate P/S Increase interest & demand for P/S Introduce & sustain P/S 1 2 3
  • 9.
  • 10.
    Global health valuechain Credit: noun project Patient Provider Healthfacility District distribution Zonal warehouse CentralMedical Store Govt. procurement agency Partner procurement networks Retailers& Wholesalers Foreign vendors Manufacturers Suppliers R&D Sourcing Use Supporting functions: R&D, infrastructure, talent, business services, etc. Policy & regulation: standards, law, norms/practices, etc.
  • 11.
    Recent trends •  Growingmiddle-class & more sophisticated consumers •  Burden shift to non-communicable diseases •  Better access to technology & information •  Growing interest from private investment •  Push toward universal health coverage
  • 12.
    Health system Subsidized  models   For-­‐profit  models   Public   Private   Public   Private  Social   Finance  Delivery   Adapted  from  Taking  Innova+ons  to  Scale,  R4D,  2013.  
  • 13.
    Potential partnerships Public SocialPrivate •  Policy   •  RegulaGon   •  Standards   •  Access & insights to key segments •  Information & education •  Pool demand •  Market-based solutions •  Efficient delivery system
  • 14.