Alongside its partners, the MDG Health Alliance and Total Impact Advisors, GBCHealth announced the formation of the Health Credit Exchange in Addis Ababa, Ethiopia at the Third Financing for Development Conference. On Monday, the Exchange was also endorsed by the Global Financing Facility in Support of Every Woman Every Child (GFF) at their official side event hosted by the Secretary General. The GFF statement referenced the Exchange as an important mechanism to supplement GFF performance payments with contributions from the private sector.
The Health Credit Exchange (HCX) is a powerful tool which will enable the private sector to direct resources toward improvements in global health in an accountable and impactful way. Through a pay for performance model, the Exchange offers both small and large donors an opportunity to pool their resources and expertise to incentivize cooperation toward meeting global and national health goals. By paying for results only after progress has been achieved, the mechanism aims to reward innovative approaches and provide significant bridge funding for the immediate scale-up of successful programs. This ‘pay for performance’ model will complement existing donor funding and make it more effective, by focusing partners on outcomes rather than inputs and giving recipients greater discretion to engage in problem-solving. The exchange will also contribute to the immediate scaling up of evidence-based, equitable and locally-adapted health solutions by injecting funding at the end of a project’s funding cycle in an effort to bridge funding gaps and jumpstart progress in new program areas.
To learn more about the initiative please review an Executive Summary linked here.
The official Every Woman Every Child-GFF joint press release is linked here.
For more information on the Health Credit Exchange, please contact Ian Matthews (firstname.lastname@example.org).