The application of social impact bonds to universal health-care initiatives in South-East Asia

Abstract

Social impact bonds (‎SIBs)‎ have the potential to improve the efficiency ofgovernment health-care spending in South-East Asia. In a SIB, governmentssign a pay-for-performance contract with one or several providers of health-careservices, and the providers borrow up-front capital from investors. Governmentsoutside South-East Asia have started to experiment with SIBs in criminal justice,homelessness and health care. Governments of South-East Asia can advancethe goal of universal health care by using SIBs to improve the efficiency of healthcare service providers and by motivating providers to expand coverage. Thispaper describes SIBs and their potential application to health-care initiatives inthe Region