Banking On Health

Why Banking on Health?

Credit is an engine of growth, driving private sector development. Financing is an essential input that assists the private sector to expand the range and types of services, enter new markets and improve services. In many countries in the developing world, the private health sector is not able to access financing from commercial banks. Many banks are not comfortable with this sector and believe that it is risky. Many private providers do not have the business skills that are needed to develop a bankable business plan.

How We Work

The Banking on Health project takes a two-pronged approach to increasing access to financing by:

• Working with local financial institutions to promote health sector lending.
• Improving credit-readiness among private providers.

Promoting Health Sector Lending

The Banking on Health project works with a variety of financial institutions to promote health sector lending. These include commercial banks, microfinance institutions, leasing companies, credit unions and cooperatives and investment funds. We train the management and loan officers of financial institutions in health sector lending and analyzing the healthcare market. We work with bank staff to develop loan products that meet the financing needs of the health sector. We can assist a financial institution to enter this new market by providing market research and borrower referrals. We also work closely with USAID’s Development Credit Authority (DCA) guarantee program. If needed, we can structure a loan or portfolio guarantee to lower a bank’s risk in entering this new market.

Improving Credit Readiness of Private Health Sector Businesses

The Banking on Health project provides training and technical assistance to the private health sector. We work with a variety of private entities, including health service providers, product distributors and manufacturers, insurance schemes and non-governmental organizations. We work with the whole range of private health sector businesses, from small-scale micro providers, such as midwives and drug shops, to large health networks and hospital groups. We support business development services to improve the private health sector’s ability to access financing. This includes training in business skills, business planning, packaging loans and post loan care. In exchange for our assistance, private providers agree to promote the delivery of family planning and other reproductive health services in a financially sustainable manner.

Health Impact

The ultimate objective of Banking on Health is to achieve positive health impact. By improving access to financing we:

• Improved financial viability of private health service providers.
• Expand the range of services offered by private providers to include RH/FP service.
• Extend private services to underserved and hard-to-reach communities.
• Increase quality of care provided through improvements in facility, capacity, or commodity supply.

Banking on Health is Funded by USAID

Banking on Health is funded by USAID’s Office of Population and Reproductive Health. This is Task Order 2 under USAID’s Private Sector Program (PSP) Indefinite Quantity Contract (IQC).

Our Partners

The Banking on Health Project is implemented by Abt Associates in association with its partners Banyan Global, ACDI/VOCA, Britan & Asociados, and IntraHealth International. Abt Associates Inc. works to strengthen health systems locally, regionally, and globally, in partnership with many private and public organizations. Abt Associates helps formulate policy, design and implement on-the-ground programs, train partners, and lead practical research and analysis that guide system improvements. As the prime contractor, Abt is responsible for oversight of the Banking on Health Project and provides technical assistance in NGO sustainability, health financing and business skills training.
www.abtassociates.com Banyan Global, formerly GMI, is a small, women-owned consulting company that specializes in innovative market approaches to development. Banyan Global's practice areas include microfinance, small and medium enterprise development, financial markets and health sector development. Banyan Global draws on its expertise in development financing, bank training, business development services and health provider training to provide key technical assistance to the project.
www.banyanglobal.com

ACDI/VOCA is a not-for-profit organization with experience in rural financial and business development services. ACDI/VOCA will assist the Banking on Health Project with bank and provider training and will work on strategies to reach underserved communities.
www.acdivoca.org

Bitran & Asociados is an international consulting firm specializing in health sector reform. Bitran will support the Banking on Health Project by tailoring provider and bank training courses to cover health reform, contracting out, and health financing.
www.bitran.cl

IntraHealth International has worked with private providers and NGOs since 1979 to improve access to, increase the range, and strengthen the quality of primary healthcare services. IntraHealth will be supporting the Banking on Health Project by providing technical assistance to ensure quality reproductive health/family planning outcomes.
www.intrahealth.org