SAMRIDH: Leveraging Blended Finance for Quality Healthcare in India

Introduction

The Sustainable Access to Markets and Resources for Innovative Delivery of Healthcare (SAMRIDH) initiative represents a transformative approach to healthcare financing in India. Launched in response to the urgent need for improved access to quality healthcare, SAMRIDH employs blended finance—combining public, private, and philanthropic resources—to bridge gaps in healthcare delivery, especially for the socioeconomically vulnerable populations.

 The Social Challenge: Access to Quality Health Care

India faces significant challenges in its healthcare system, primarily due to chronic underfunding. The government allocates approximately 1.9% of its GDP to public health, starkly lower than the global average of about 10%. This shortfall has resulted in inadequate infrastructure, a shortage of skilled workforce, and an overreliance on overstretched public facilities. Vulnerable populations, including low-income and marginalized communities, often find themselves without access to affordable and quality care, leading to poor health outcomes and substantial out-of-pocket expenses.

The COVID-19 pandemic further exacerbated these challenges, pushing the healthcare system to its limits and revealing the pressing need for sustainable healthcare solutions. Despite government and private sector efforts to improve healthcare delivery, it is estimated that India requires an additional investment of $245 billion by 2034 to meet its healthcare needs, with $156 billion specifically needed for advancing technology adoption and preventive health care.

 The Partnership: SAMRIDH Blended Finance Facility

(SAMRIDH) is supported by the United States Agency for International Development (USAID) in collaboration with Atal Innovation Mission & Women Entrepreneurship Platform, NITI Aayog, Principal Scientific Advisor to the Government of India, the National Health Authority, Indian Institute of Technology, Rockefeller Foundation, Axis Bank, IndusInd Bank, HDFC Bank, Caspian Debt and Centre for Cellular and Molecular Platforms, and is managed by IPE Global. Through this initiative, SAMRIDH combines commercial capital with public and philanthropic funds to drive greater resources towards market-based health solutions that can improve access to affordable and quality healthcare services for India’s most vulnerable.

The initiative’s immediate goal is to bridge supply-side gaps in emergency health services while its long-term vision seeks to strengthen comprehensive healthcare for approximately 540 million socioeconomically vulnerable individuals. Key objectives include identifying sustainable business models, mobilizing grant and debt commitments, reducing out-of-pocket expenses for underserved communities, and promoting Environmental, Social, and Governance (ESG) principles in investment decisions.

The Impact of SAMRIDH

In its first two years, SAMRIDH mobilized nearly $300 million in funding, improving healthcare access for over 25 million individuals across 28 states. Leveraging an initial grant of $12 million, SAMRIDH facilitated $100 million in commercial investments and provided capacity building for over 17,000 healthcare professionals. The initiative deployed health solutions in over 1,000 medical facilities, enhancing service delivery and directly serving more than 5.2 million vulnerable individuals.

SAMRIDH’s innovative approach highlights the potential of blended finance to address healthcare financing gaps effectively. This model can be a blueprint for other nations seeking to enhance their healthcare systems while achieving the United Nations Sustainable Development Goals (SDGs).

 Social Impact and Innovations

SAMRIDH has prioritized solutions that serve vulnerable populations, particularly women and children. Its primary healthcare initiatives include mobile health vans, telemedicine canters, and health camps. For example, organizations supported by SAMRIDH, such as Sevamob and Karma Healthcare, have reached over 12 million people, with around 60% being women.

In addition to service delivery, SAMRIDH has addressed supply chain challenges by enabling on-demand drone delivery of medical supplies to remote areas and enhancing cold storage networks. The initiative has also improved health infrastructure through projects like Mission ICU, which has established critical care facilities in tier 2 and 3 cities.

Furthermore, SAMRIDH supports innovations focused on environmental sustainability, such as recycling plastic waste into fuel and developing waterless hygiene products. These efforts demonstrate a holistic approach to health that considers environmental impacts alongside social equity.

Challenges and Facilitators

Despite its successes, SAMRIDH faces several challenges. Awareness of blended finance applications among healthcare enterprises is low, and many lack the managerial capabilities to explore new funding avenues. There is also limited knowledge regarding the importance of measuring and communicating impact, hindering the scalability of blended finance solutions.

To address these challenges, SAMRIDH employs a LEGO approach (Living Engineering Process), using various financial building blocks to achieve desired outcomes. The initiative fosters collaboration among stakeholders, ensuring a robust governance structure that includes an Advisory Committee of experts to oversee funding disbursement and ensure sustainability.

 Future Directions and Lessons Learned

The blended finance market in India is expanding, attracting diverse capital to enhance healthcare financing. SAMRIDH aims to improve healthcare access, particularly for vulnerable populations, and provides early-stage organizations access to affordable commercial capital. The initiative has garnered recognition, being awarded the 2022 P3 Impact Award, reflecting its collaborative strength.

As SAMRIDH continues to grow, it highlights the importance of supportive policies, mobilizing private sector funding, and adopting ESG frameworks to enhance blended finance for social development. The initiative underscores how innovative financing mechanisms can drive meaningful change in healthcare, improving quality and access for millions in India.

 Conclusion

The SAMRIDH initiative exemplifies the transformative power of blended finance in addressing healthcare challenges. By fostering innovation and entrepreneurship in the health sector, SAMRIDH is poised to create a sustainable ecosystem that enhances healthcare access and quality for India’s most vulnerable populations. Continued support and investment in such initiatives are essential to achieving equitable health outcomes and fulfilling the broader goals of social equity and sustainable development.

Prepared by: U Upender, Chief Manager, Zonal Learning Centre-Hyderabad