Achieving Universal Health Coverage in Low- and -Middle-Income Countries: The Power of Public-Private Partnerships

Health
2024/11/07

Since the Sustainable Development Goals (SDGs) launched in 2015, achieving Universal Health Coverage (UHC) has been a key objective for improving health globally. Embedded in the SDGs, UHC means ensuring that “all people have access to the full range of quality health services they need, when and where they need them, and without financial hardship.”

Despite this commitment, over half the global population still lacks access to essential health services, and each year, over 100 million people are driven into extreme poverty by healthcare costs alone.

No country has yet come close to achieving 100% UHC, however, the challenge is particularly felt in many low- and middle-income countries (LMICs), where finances for healthcare systems are stretched thin, primarily due to limited tax bases and persistent underfunding. The most recent WHO Global Monitoring Report on Tracking Universal Health Coverageshows that LMIC’s are facing particular challenges, including on catastrophic out-of-pocket (OOP) spending on health. Since 2015, the number of people in LMIC spending more than 10% and 25% of their household income on OOP healthcare expenses has increased, respectively. Alongside this, both access to healthcare and healthcare system capacity have also worsened.

In these contexts, financing challenges and resource-constrained health systems hinder governments’ capacity to meet the demand for quality, affordable healthcare. This limits their progress toward UHC. Simply put, in many cases, public funds alone cannot cover the demand, nor can they meet the complex requirements of resilient health systems. As LMIC economies grow and tax bases expand, many financial constraints may ease over time. However, alternative approaches are essential to reach this stage.

Public-Private Partnerships (PPPs) offer one such approach, with the potential to bridge funding gaps, increase service accessibility, and reduce pressure on public budgets. Private sector financing can deliver the catalytic investment necessary for health systems to achieve sustainable financial stability over the long term.

A Path Forward: The Role of Public-Private Partnerships

PPPs provide a practical solution to financing UHC by leveraging private capital to advance public health objectives. A 2016 Lancet article describes private contracting as “fiscally pragmatic,” enabling faster capacity expansion by using private funds for initial infrastructure investments beyond what government funding alone can achieve.

This easing of budgetary pressures allows governments to allocate resources to other critical areas, such as healthcare workforce development and public health initiatives.

For instance, private sector funding can enhance healthcare access, helping to reduce out-of-pocket expenses—a critical step toward achieving UHC. A notable example is in Kenya, where Pfizer partnered with PharmAccess to launch M-TIBA, a mobile health payment and savings platform for low-income patients. M-TIBA provides financial subsidies to support access to healthcare, illustrating how private-sector collaboration can make meaningful strides toward UHC.

Furthermore, PPPs offer structured financing models that enable governments to spread substantial costs over time, easing the immediate financial burden of investing in new infrastructure or medical equipment. This approach provides governments with greater budgetary flexibility and reliable financing mechanisms. With budgets under less strain, funds can be allocated more strategically, ultimately enhancing service delivery and fostering a resilient, sustainable healthcare system.

Our Commitment

We view ourselves as a small yet influential part of this transformation, promoting a step-by-step approach to UHC that highlights the benefits of PPPs. We believe the private sector can contribute significantly by offering affordable essential health services, enhancing financial inclusion, and reducing medical impoverishment. Through collaboration with governments, we can pool resources, spark innovation, and create lasting solutions to persistent healthcare challenges.

We contribute to achieving UHC by implementing health programs for small-scale producers in low- and middle-income countries, focusing primarily on the coffee and cocoa sectors. With funding from the private sector, we partner with health facilities and local governments to improve healthcare access without financial burden. Our programs allow smallholder farmers and their families to access essential healthcare without out-of-pocket expenses while supporting infrastructure improvements at local health facilities. This approach illustrates how PPPs can make steady progress toward UHC, enhancing livelihoods, reducing medical impoverishment, and improving quality of life.

A small-scale cocoa producer enrolled in Ghana's Akwaaba project, using both his national health insurance and Elucid health card to access essential healthcare services.

A Call for Collaborative Models in Global Health

As we approach 2030, achieving UHC demands a shared commitment that extends beyond government efforts alone, recognizing health as a fundamental human right. PPPs offer a practical solution to bridge financing gaps in LMIC healthcare systems, expanding access to the most vulnerable communities. By aligning private sector strengths with public health needs, we can make substantial progress toward a future where quality healthcare is accessible to all. With coordinated efforts from governments, the private sector, and civil society, the vision of UHC becomes increasingly attainable.

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