Advancing impact investing in healthcare for those who need it most

In my early years, I experienced the devastating consequences of limited access to healthcare. At just 5 years old, I lost my 1-year-old brother due to a lack of timely care – a memory that has deeply shaped my commitment to ensuring first-time-right screening and early diagnosis. While this personal tragedy has been a private burden, it is a reminder of the global reality.

Healthcare disparities remain a pressing challenge. Recent health crises, including the pandemic, have exacerbated existing health inequalities, threatening our progress towards universal health coverage. Breakthrough innovations will be required to bridge the gaps and address the systemic challenges within our healthcare systems.

Firstly, innovative models are needed to address the human resource gap in health, leveraging technology effectively in low-resource settings. Secondly, we must innovate around supply chain challenges, recognizing that a one-size-fits-all approach will not reach communities in remote areas. Lastly, we need to redesign primary healthcare infrastructure to align with evolving needs, ensuring access to healthcare anytime, anywhere.

According to the WHO, 90% of essential interventions for universal health coverage can be delivered by improving healthcare at the primary care level. Technology plays a pivotal role in achieving this. To address the pressing healthcare access issues that underserved communities face, sustainable business models are essential for efficient scaling, and collaborative efforts are crucial for systemic change in primary healthcare systems.

We need change-makers who can revolutionize solutions, building upon public sector efforts. Social venturing has shown its potential to address many issues at grassroots level. It’s not just about sustainability for philanthropic capital; it’s about accelerating scalable impact.

Since we began our journey in impact investing, we have adopted a holistic approach to assemble a portfolio of high-potential enterprises. We assessed these enterprises based on their technology or business model and their overall capacity to generate meaningful and sustainable impact within the healthcare systems they serve. The social ventures highlighted in this report are a testament to this approach.

Developing a robust impact investment portfolio to enhance healthcare access for the underserved requires an ecosystem approach. This involves social ventures addressing complementary areas, focusing on early screening and diagnosis to prevent mortality and complications.

Leveraging digital solutions is key to supporting procurement, clinical operations, telehealth, specialist access, education, and patient engagement. This ecosystem aims to reduce healthcare costs while maintaining quality through a network that facilitates hub-and-spoke integration. It is built on complementarity and the interoperability of technologies, ensuring continuity of care through strategic collaborations and effective referrals.

Impact investing requires organizational change and readiness. While financial return is an essential consideration in evaluating investment opportunities in venture capital, true impact investing prioritizes social return. This emphasizes the importance of valuing societal impact alongside financial performance to drive change and foster a more equitable and sustainable world.

Bahaa Eddine Sarroukh
Impact Investing Lead of Philips Foundation Impact Investments B.V.

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Download Philips Foundation's 2023 Annual Report