pLOG

2024-10-24

How Social Impact Investment Drives New Drug Adoption and Improves Patient Care

Social impact investment has become a significant force in driving healthcare reform internationally, particularly in promoting the use of new drugs and improving patient care. This closely aligns with 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 (SSROI) to quantify the social benefits and financial returns of these programs, leading to a better understanding of their value in promoting global healthcare equity.

Drug Accessibility Challenges: MedAccess's Social Innovation Solutions

Despite significant advances in global medical science in recent years, particularly in new drug development, over 2 billion people worldwide still lack access to essential medications, leading to an increase in preventable diseases and deaths. MedAccess utilizes volume guarantee purchases, debt financing, and blended financing instruments to reduce pharmaceutical companies' risks in distributing drugs to low-income countries. By focusing on innovative financing models to improve drug accessibility, it has become a classic case study in social impact investment innovation, enabling more innovative medical products to reach vulnerable populations globally in a timely manner. Currently, it has helped millions of people access medications they previously could not afford.

Pharmaceutical Patient Assistance Programs: Addressing Healthcare Needs of Uninsured Patients

In the United States, expensive medical costs pose a particularly severe challenge for uninsured patients. Patient Assistance Programs (PAPs), offered by many prominent international pharmaceutical companies such as Pfizer and Merck, provide free or low-cost medications, significantly improving patient access to new drug treatments. These programs align with SDG 3, promoting greater access to medical care for more patients.
Additionally, pharmaceutical companies like Sanofi also have PAPs that help reduce the medical burden for chronic disease patients. These PAPs not only support health and well-being but also help reduce health inequalities within the United States (SDG 10). Through these programs, uninsured patients can access treatments for chronic conditions such as diabetes, heart disease, and cancer, avoiding higher medical costs that would result from delayed treatment.

SSROI: Measuring the Social Value of Patient Assistance Programs

Social and Sustainable Return on Investment (SSROI) is a measurement tool used to quantify the social benefits generated by patient assistance programs. This framework considers not only direct financial returns but also the cost savings for the healthcare system and society as a whole. The measurement is based on factors such as improved medication adherence, reduced emergency room visits, and medication cost savings.

The SSROI evaluation process typically includes the following steps:

  1. Identifying Stakeholders: First, all stakeholders affected by PAPs must be identified, including patients, pharmaceutical companies, healthcare providers, and social impact investors.
  2. Defining Outcomes: Next, define the specific outcomes these programs aim to achieve, such as increasing drug access, improving patient quality of life, and reducing medical expenses.
  3. Converting Outcomes to Value: Transform social and economic outcomes into monetary values. For example, reducing emergency room visits due to poor medication adherence directly saves resources for the healthcare system.
  4. Calculating SSROI: Divide the total value of social outcomes by the total investment to obtain the SSROI ratio. A higher ratio indicates greater social benefits from the program.

Application of PAPs for Uninsured Patients in the US and their SDGs Impact

Through SSROI analysis, PAP programs have demonstrated significant social returns and value as social impact investments. They not only reduce social healthcare costs but also improve patients' quality of life and access to new medications. Additionally, the social benefits of these programs include promoting health equity by helping traditionally disadvantaged groups in the healthcare system, such as middle and lower-income groups and patients with special conditions, achieve fair care. Through systematic efficiency and management models, these services have also demonstrated their profitability and sustainability.

─ Patientsforce Chairman and President, Sean Chang