PharmacoEconomics & Outcomes News 666 - 10 Nov 2012 Innovative health financing not so new An analysis of the contribution of innovative financing sources to development assistance for health, published in the Lancet, has shown that sources of international innovative financing contribute a relatively modest amount compared with traditional sources of donor assistance. Three integrated, international mechanisms of innovative financing, GAVI, Global Fund and UNITAID, were investigated. The value chain framework was used to describe key steps transforming donor funding to outcomes. Trends in innovative health financing from 1990–2010 were then examined. Innovative financing was considered to be that from private foundations and private companies; local currency bonds from multilateral development banks were not included. GAVI is primarily funded through the International Finance Facility for Immunization (IFFIm). IFFIm proceeds amounted to $US1.9 billion between 2006 and 2010, and by 2010 GAVI had mobilised ≈$43 million for pneumococcal disease through the Advance Market Commitment (AMC). Between 2000 and 2010, the largest contributions to GAVI came from donor governments and the European Commission, and IFFIm ($2.07 and $1.91 billion, respectively), followed by private donors ($1.27 billion) and AMC funds ($0.52 billion). The Global Fund received $31.3 billion in total pledges by June 2011, of which 5% was from innovative sources. This 5% consisted of pledges from the private sector and initiatives such as (PRODUCT)RED ($162 million from Jan 2006 – Jun 2011) and Debt2Health ($37 million by 2011). UNITAID raised ≈$1.3 billion by the end of 2010, ≈70% of which originated from a small levy imposed on airline tickets in Chile, France, Madagascar, Niger, Mauritius and South Korea. UNITAID also received multi-year contributions from the Gates Foundation, and Brazil, Spain, the UK and France; over 60% of total UNITAID revenue has been contributed by the Gates Foundation and France. UNITAID and the Clinton Foundation have worked together to secure 25–50% reductions in the price of second-line AIDS treatments and pediatric antiretrovirals. The authors conclude that there should be existing exploration into "how the existing integrated innovative financing mechanisms can be strengthened and used effectively" to increase both health gain and funding. Atun R, et al. Innovative financing for health: what is truly innovative? Lancet : 24 Oct 2012. Available from: URL: http://dx.doi.org/10.1016/ S0140-6736(12)61460-3 803079329 1 PharmacoEconomics & Outcomes News 10 Nov 2012 No. 666 1173-5503/10/0666-0001/$14.95 Adis © 2010 Springer International Publishing AG. All rights reserved

Innovative health financing not so new

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PharmacoEconomics & Outcomes News 666 - 10 Nov 2012

Innovative health financingnot so new

An analysis of the contribution of innovative financingsources to development assistance for health, publishedin the Lancet, has shown that sources of internationalinnovative financing contribute a relatively modestamount compared with traditional sources of donorassistance.

Three integrated, international mechanisms ofinnovative financing, GAVI, Global Fund and UNITAID,were investigated. The value chain framework was usedto describe key steps transforming donor funding tooutcomes. Trends in innovative health financing from1990–2010 were then examined. Innovative financingwas considered to be that from private foundations andprivate companies; local currency bonds frommultilateral development banks were not included.

GAVI is primarily funded through the InternationalFinance Facility for Immunization (IFFIm). IFFImproceeds amounted to $US1.9 billion between 2006and 2010, and by 2010 GAVI had mobilised≈$43 million for pneumococcal disease through theAdvance Market Commitment (AMC). Between 2000and 2010, the largest contributions to GAVI came fromdonor governments and the European Commission, andIFFIm ($2.07 and $1.91 billion, respectively), followedby private donors ($1.27 billion) and AMC funds($0.52 billion).

The Global Fund received $31.3 billion in totalpledges by June 2011, of which 5% was from innovativesources. This 5% consisted of pledges from the privatesector and initiatives such as (PRODUCT)RED($162 million from Jan 2006 – Jun 2011) andDebt2Health ($37 million by 2011).

UNITAID raised ≈$1.3 billion by the end of 2010,≈70% of which originated from a small levy imposed onairline tickets in Chile, France, Madagascar, Niger,Mauritius and South Korea. UNITAID also receivedmulti-year contributions from the Gates Foundation,and Brazil, Spain, the UK and France; over 60% of totalUNITAID revenue has been contributed by the GatesFoundation and France. UNITAID and the ClintonFoundation have worked together to secure 25–50%reductions in the price of second-line AIDS treatmentsand pediatric antiretrovirals.

The authors conclude that there should be existingexploration into "how the existing integrated innovativefinancing mechanisms can be strengthened and usedeffectively" to increase both health gain and funding.Atun R, et al. Innovative financing for health: what is truly innovative? Lancet : 24Oct 2012. Available from: URL: http://dx.doi.org/10.1016/S0140-6736(12)61460-3 803079329