Social impact investing has become an important force in driving healthcare reform internationally, particularly in promoting the use of new medicines and improving patient care, which is closely related to the goals of the United Nations Sustainable Development Goals (SDGs), especially SDG 3 (good health and well-being) and SDG 10 (reduced inequalities). In recent years, investors have used the concept of social and sustainable return on investment (SROI) to quantify the social and financial returns of these programs to better understand their value in advancing global healthcare equity.
The Challenge of Drug Accessibility: MedAccess’s Social Innovation Solution
Despite significant advances in global medical science in recent years, especially in the development of new medicines, more than 2 billion people worldwide still do not have access to the essential medicines they need, which has led to an increase in preventable diseases and deaths. MedAccess has become a classic example of social impact innovation investment by reducing the risk of pharmaceutical companies distributing medicines in low-income countries through volume guaranteed procurement, debt financing, and blended financing instruments, and focusing on improving access to medicines through innovative financing models. Currently helping millions of people access medicines they previously couldn’t afford
Patient Support Program for Pharmaceutical Companies: Addressing the medical needs of uninsured patients
In the U.S., the high cost of medical care poses a serious challenge especially for uninsured patients. Patient Support Programs (PAPs), most of the well-known international pharmaceutical companies, such as Pfizer and Merck, provide free or low-cost drugs, and the use of PAPs has significantly improved the accessibility of new drugs for patients. These programmes are also in line with the SDG 3 goal of increasing access to medicines.
Sanofi Pharmaceuticals also has a program of PAPs to help reduce the healthcare burden for patients with chronic diseases, which not only support health well-being, but also help reduce health inequalities within the United States (SDG 10). Through these programs, uninsured patients can access treatment for chronic diseases such as diabetes, heart disease and cancer, avoiding the higher medical costs associated with untimely treatment.
SROI: Measuring the Social Value of Patient Support Programs
Social and Sustainable Return on Investment (SROI) is a measurement tool used to quantify the social benefits of patient assistance programs. This framework takes into account not only the direct financial returns, but also the cost savings for the healthcare system and society as a whole. For example, by improving medication adherence and reducing savings in emergency room visits or medication costs
The evaluation process for SROI typically includes the following steps:
1. Identify stakeholders: The first step is to identify all stakeholders affected by PAPs, such as patients, pharmaceutical companies, healthcare providers, and social impact investors.
2. Define outcomes: The next step is to define the specific outcomes that these programs aim to achieve, such as increasing access to medicines, improving patients’ quality of life, and reducing healthcare expenditures.
3. Convert value into results: Translate social and economic outcomes into monetary value. For example, reducing the number of emergency room visits due to poor medication compliance directly saves resources for the healthcare system.
4. Calculate SROI: Divide the total value of social outcomes by the total amount of investment to arrive at the SROI ratio. The higher the ratio, the greater the social benefit of the program
The application of PAPs in uninsured patients in the United States in SDGs
Through SEROI analysis, PAPs programs demonstrate significant social returns and the value of social impact investment for PAPs providers, which not only reduces the cost of care for society, but also improves the quality of life of patients and the accessibility of new medicines. At the same time, the social benefits of these programs also include promoting health equity, helping to equitable care for historically disadvantaged groups in the healthcare system, such as the lower and middle classes and special diseases, and demonstrating the profitability and sustainability of the service through the use of system efficiency and the management manager model.
Zhang Xiangxin, General Manager of Patientsforce Caihong Health Integration Group
