Are you a startup working in the health sector looking to rise to the next level. Funds are a key consideration whether starting-up or scaling up. Not as much so, however, if one has access to the right information. Precisely the reason, one should look at the Samrodh scheme which aims to handhold startups.
In 2020, USAID and academic and private sector stakeholders from the Government of India developed an innovative leveraged hybrid financing facility to combine public and philanthropic funds with commercial capital to create and rapidly scale market-based health solutions.
Blended finance is an approach to financing where induced financing from public and philanthropic sources (such as grants and concessional capital) is used to attract additional investment from the private sector to achieve social goals and outcomes.
It will improve access to affordable and quality health care for vulnerable populations in Tier II and III cities and rural and tribal areas.
The initiative is implemented by a technical support unit managed by IPE Global (a company).
The Objective Of SAMRIDH
The first and foremost objective of this scheme is to bridge supply-side gaps in health facilities by promoting health emergencies in the immediate, medium, and long term and accelerate the scale-up and adoption of innovative and market-based health solutions.
It will also focus on mobilizing resources to build sustainable health systems by promoting high-impact health solutions and promoting local and comprehensive solutions at the community level for vulnerable populations.
What makes SAMRIDH significant?
The scheme is highly significant as it will be invested in healthcare solutions by leveraging philanthropic capital and public sector resources to remove barriers to business investment in Atal Innovation Mission and thriving small and medium healthcare enterprises.
This new partnership will enhance Samruddha's efforts to reach out to vulnerable populations and leverage Atal Innovation Mission's expertise in innovation and entrepreneurship.
It will identify and support a minimum of 35 to 40 healthcare innovators (over 3 years) by enabling access to affordable capital. The scheme also aims to mobilize a capital pool of $100 million+ from the private sector and bilateral organizations to support inclusive business models.
SAMRIDH also aims to strengthen comprehensive healthcare services focused at the vulnerable 40% of the population with a high disease burden. It will reduce the out-of-pocket expenditure (OOPE) for lower economic and underserved communities.
Although India's healthcare sector has grown rapidly over the past five years (22% compound annual growth rate), the COVID-19 pandemic has seen challenges such as a weak healthcare system, lack of quality infrastructure, and quality service delivery.
India's healthcare expenditure is about 3.6% of GDP, including out-of-pocket and public expenditures.
The combined total government expenditure of the Center and the States is 1.29% of the GDP. Among BRICS countries, India spends the least: Brazil spends the most (9.2%), followed by South Africa (8.1%), Russia (5.3%), and China (5%).
The Government of India has launched 'Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana' (AB-PMJAY), the world's largest non-contributory health insurance scheme sponsored by the government in secondary and tertiary healthcare facilities for poor and vulnerable families. Access to health care has been enabled.