ISUESS:

UNSHP INNOVATIVE FINANCING PROGRAMME:

GLOBAL MOVEMENT ON SUSTAINABLE HEALTH:

1-UNSHP Membership Platform

-support implementation of the Sustainable Health Criteria by members in a local context;

-provide a platform for members to share ideas and best practices and facilitate networking and collaboration;

-consolidate understanding of common Health challenges – with a focus on local / regional issues;

-encourage new and existing members to get involved in UNSHP activities in other regions;

-raise awareness about Sustainable Health Code of Practice and recruit new members;

-engage with local companies and policymakers collectively on specific Sustainable health issues; and

-Provide intelligence to the UNSHP regional office on the issues and challenges facing local members.

-Creating a financially sustainable health system

 

 

2-UNSHP Financial Management Services for Health Industry

Sustainable Health and Economy

 

The World Economic Forum has made health a priority global initiative, recognizing it as central to the Forum’s overall mission to improve the state of the world.

Looking at health as a fundamental economic issue, the Forum aims to address two major gaps-accesses to health and access to care - making health and care an investment for economic development and growth achievements and advances in health and healthcare are a major success story of the past two centuries. However, this success has come at a cost, with healthcare expenditure outstripping GDP growth for decades across the Organization for Economic Co-operation and Development (OECD) countries. Given the main reasons for rising health expenditures, it is unlikely that focusing solely on improving healthcare supply efficiencies will lead to sustainable health systems in the future.. In today’s economic climate, many governments are targeting healthcare expenditure for cost-cutting as part of broader austerity programs. A discussion on long-term sustainability therefore is timely to ensure that short-term priorities do not damage long-term value. Health system leaders need to think for the future, expanding the group of responsible stakeholders and breaking from the status quo to deliver high quality, full-access, affordable, sustainable health services.

“The preferred health system of the future is strikingly different from the national healthcare systems of today, with empowered patients, more diverse delivery models, new roles and stakeholders, incentives and norms.” 

In the long run, the growth of material production and consumption is limited by natural resource constraints, and achieving a sustainable future will require policies and institutions that maintain the economy within the bounds set by nature. But significant growth of GDP—a measure of the subjective value of goods and services—can nonetheless be achieved in the interim through a move to technologies and consumption patterns sufficient to sharply reduce the economy’s “ecological footprint.

“Creating a financially sustainable health system requires a major re-orientation towards value and outcomes, the involvement of a broader set of stakeholders in a more effective governance structure, and greater engagement and responsibility of patients and citizens Strategies With the visions in mind, participants suggested strategic options to achieve those aspirations.”

From the Conversations, Three major themes emerged: Embrace data and information to transform health and care. We are entering the age of precision medicine, fundamentally challenging the past practice of medicine. Improved data and information are beginning to change the way that health systems operate and make decisions, a transformation that can be enabled by faster and more productive adoption and integration of these data Innovate healthcare delivery.

“To achieve a sustainable health system for the future, societies must reshape demand for health services, reducing the disease burden by helping people to stay healthy and empowering them to manage their health.”

Health systems can encourage people to develop healthier habits, incentivize healthier consumption and develop an environment and infrastructure that facilitate population health Critical uncertainties Future health systems will be influenced by a number of factors outside the control of health system leaders.

 

Financial Services for Organizations

A) Financial Services for Non- Profit Organization:

International donors are increasingly focused on funding programs that can sustain services beyond their grant horizons. Donor fatigue is on the rise as new social service organizations are joining the market and competing for donor resources. While some programs have introduced innovative means to earn revenue and lower donor dependency, other programs recognize sustainability as a lesser priority and are still reliant on grants and donation opportunities available. Proponents of this argument claim it remains possible to scale-up services through such models rather than invest time in developing social businesses, and risk losing patients as well as reduce their access by charging for services.

Several not-for-profit organizations and charity operations have attempted to fill this gap by providing healthcare services for low-income groups. However, traditional models of charity or donation-based public health services face growing criticism. International donors increasingly perceive development-funding as investments for sustainable services rather than one-time donations. Local donors are similarly keen to support programs that could provide maximum utilization of their charitable contributions.

Consequently, many poor-focused health organizations are developing interest in breaking away from the grant-based approaches and incorporating an income generation facet into their programs to achieve financial sustainability. Financial sustainability of an organization can be described as the “capacity to obtain revenues in response to a demand, in order to sustain productive processes at a steady or growing rate to produce results and to obtain a surplus3. Financial sustainability in the context of this document implies sufficient revenue generation through inherent operational processes to sustain services in the longer term. For public health programs sustainability may arise through a number of processes, several of which are adaptations of for-profit business models.

 

Cross-subsidization

Cross-subsidization uses income generated from one consumer segment (usually the more affluent) to subsidize the cost of services in another consumer segment (the less affluent). These types of programs offer services to people with various income levels, charging them according to their ability to pay.

 

Franchise-Based Model

Franchising is a process where an operator (franchisee) uses a business model employed by another company (franchisor) and its brand, in return for a royalty (franchising fee). As part of this arrangement, the franchisor helps with marketing and operations and allows the franchisee to use its brand. Social franchise networks extend this concept with the difference that benefits are gauged from a social or developmental perspective rather than a commercial one.

 

Service Subsidization

In the service subsidization, an organization offers certain services for free or at a lowerpriced.Whereas other income-generating services are charged at higher or full prices. The incomegenerating components of the program cover the cost of the entire operation and offset the cost of the free and subsidized services offered.

 

Open source models

Open source models are generally applied in the technology sector where organizations provide solutions, such as, medical software for free and charge fees for implementation rather than the product itself. Open source models are distinct from freeware models commonly seen in the commercial technology sector in that the “source code” is also provided and is not licensed, thus the solution can be modified, adapted and distributed by organizations that did not develop the initial product.

 

B) Financial Services for Profit Organization:

Leaders within healthcare organizations of all shapes and sizes face a wave of challenges including globalization, the explosion of information technologies, concerns around environmental impacts, changing demographics, increased regulatory scrutiny, pending healthcare reform and, most recently, a global economic recession. Many of these challenges are landing on the desk of decision-makers charged with managing the workplace. These individuals carry different titles, but share common responsibilities: delivering workplaces that are safe, comfortable, productive and cost-effective. Many leaders ask a relatively consistent set of questions:

How can we lower our $/square foot costs?

What can we do to use less fossil fuels, electricity and water in our facilities?

How do we meet our environmental commitments?

Can our workplaces help us build a more innovative and talent-rich culture?

Can our facilities improve our image in our community?

Ongoing research points to four key themes that consistently arise to the top of the list.

Research from Johnson Controls suggests that any and all sustainability initiatives must:

Reduce operating costs across the organization

Reduce the environmental footprint (emissions, waste, water and energy)

Secure its own support and funding (by paying for itself in some way)

Educate and engage stakeholders (employees, partners, customers and community)

If organizations are beginning to learn about sustainability, they start by talking about managing operating costs first and reducing their environmental footprint second. Many healthcare organizations (particularly those familiar with Johnson Controls) quickly move to the topic of energy efficiency because it is seen as an area that offers the most opportunity to reduce costs, reduce environmental impacts and pay for itself through energy efficiency savings.

 

 

 

 

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