Patient Capital

It is evident that “strengthening the existing government health system would be more effective than scaling up the health insurance model” (“Health Insurance, Health Access and Financial Risk Protection” by Shailender Kumar Hooda, EPW, 12 December 2015). Good health is most valued by any individual, rich or poor. Sadly, access to healthcare is largely determined by where a person is born. The status of one’s health generates externalities for many other aspects of one’s life.

There is a desperate need to expand healthcare infrastructure in both urban and rural areas. The investments that India makes in its healthcare system are expensive and usually only “pay off” in the long term with economic development that stems from a healthy, productive workforce. Disadvantaged people may ensure their long-term healthcare through health insurance, but it is basically covering the middle- and upper-class populations. The “bottom of the pyramid” population is ignorant about this due to multifarious causes—improper information, poor economy, hazards of claim settlement, etc. But health insurance might act as “patient capital,” a funding mechanism used in international development that results in greater and more efficient social impact than traditional development financing to provide sustainable healthcare facilities to the poorest populations. It is considered as “patient investment” that expects below-market returns. But it yields widespread social impact. It is an innovative and effective mechanism in a new era of development because of its affinity to long timelines and its focus on long-term sustainability and social impact. In a new era of social entrepreneurship, individuals would reach out to increase social impact and this should provide a more equitable future for all. An inclusionary market-based approach might provide more sustainable and inclusive development results for communities at the bottom of the pyramid.