Health Impact Fund (HIF)

Making new medicines accessible

The Health Impact Fund (HIF) is a proposed new way of

paying for pharmaceutical innovation.

The HIF would incentivize the development and delivery of new

medicines by paying for performance

All pharmaceutical firms worldwide would have the option of

registering new medicines with the HIF

By registering, a firm would agree to provide its drug at cost

anywhere it is needed, and in exchange for foregoing the

normal profits from drug sales, the firm would be rewarded

based on the HIF's assessment of the actual global health

impact of the drug

INTRODUCTION

How would you organise the

Pharmaceutical Industry ?

The main principle

Real-time open Access to the world of all important

medicine regardless of their income.

R&D investment target the innovations that promise the

large health gains.

The entire system is cost-effective so that money spend

on the medicine achieve as much as possible for human

health.

The existing system

Focused innovation is distorted by huge economic

inequalities, which sustain the “10/90 gap”, and by

excessive rewards for “me-too” and maintenance drugs.

Overall efficiency & Wasteful

Marketing.

Overall efficiency is greatly diminished by

lobbing,gamming,patenting and litigation, by dead

weight losses, and by incentives for wasteful

marketing.

How it can Controlled:-

Regular surveillance using IT in the field of

Pharmaceutical.

Moral pressure on innovation isn’t the

solution

Like individuals, pharmaceutical firms have duties of

rescues: to deliver important drug cheaply to poor

patients and to developing new medicine for the

disease for the poor.

Driven out of the market.

The potential gains are enormous

In less developing countries some 50,000 premature

death daily that is 1/3 of all human death are due

to disease of poverty such as

TB,diarrhea,Respiratory infection, malaria and

conditions, measles and other child hood

diseases,hepatites and sexually transmitted

diseases.

How can we change the system?

Health Impact Fund Works Reward

Mechanism

HIF would offer a fixed reward pool each year $ 6 billion say, financed through taxes and /or endowment income.

Rewarded for 10 years.

Product’s rewarded share in year X would equal its share of total health impact of all registered products in year x

After 10 years every years the product should be re-evaluated annually on the basis of new data and innovator will paid for it.

Health impact fund benefits all parties.

For innovators

Creates a new market of patient who cannot pay high

price

Provide additional profitable research opportunity

Bring relief from moral pressure to accept losses for the

sake of protecting the health of poorer patients

Health impact fund benefits all parties.

For Patients

Increase the likelihood that best medicine is available

Ensure that important available medicines are

affordable and supported

Health impact fund benefits all parties.

For Funding governments /taxpayers

Make spreading on medicines vastly more efficiency.

Greatly reduces the human and economic burdens of

disease.

Conclusion

If this type of Health Impact funding system is

developed, the innovators will be inspired for the

new research & development and patients will get

affordable medicines and the innovators should also

be rewarded for it.

From this ,the wastage of money in the research will

be controlled and it will help the country to maintain

the health care system and economic condition will

be stabilize.