The Private Sector Innovation Programme for Health (PSP4H) is a two-year programme funded by the United Kingdom’s Department for International Development (DFID) and implemented by a consortium led by Cardno Emerging Markets Ltd mandated to conduct action research and explore a new area for DFID Kenya, namely the markets in which poor people pay for-profit providers and shop-keepers for healthcare.
The overall objective of the PSP4H programme is to learn lessons of how a market systems approach might benefit pro-poor health interventions. The primary target group for the project is the ‘working poor’, who have some disposable income and usually make out-of-pocket payments for health care.
PSP4H encourages the private sector to invest in providing health care products and services to this target group. The programme partners with the private sector to identify innovative approaches and pilot them; if they are successful and viable, they will be replicated and scaled up. The programme helps mitigate the risk of innovation for investors. Lessons learned and knowledge gained will be documented and shared.
PSP4H is based on principles from the Making Markets Work for the Poor (M4P) approach and will share evidence with both Kenyan and international health stakeholders on the validity of this approach for pro-poor health programme design.
In a two year span, the PSP4H team will assess the Kenyan health market and its sub-sectors, using this information to help identify and pilot appropriate pro-poor healthcare interventions by the private sector. The programme will conduct action research to help form an evidence base for the market systems approach. Using value chain analysis, market surveys and other analytical approaches, the PSP4H team will assess market dynamics including formal and informal rules governing behaviours of buyers and sellers; incentives (financial and otherwise) motivating private healthcare providers; and the enabling environment underpinning the performance of the Kenyan private healthcare market.
PSP4H’s primary target group is the ‘working poor’, who pay for health care – the 2nd and 3rd income quintiles. A basic premise is that the working poor are market players and represent an underserved market with vast potential. PSP4H will encourage the private sector to invest in providing health care products and services to this target group.
The PSP4H team assesses the Kenyan health market and its sub-sectors and and conducts action research by identifying and piloting appropriate pro-poor interventions by the private health sector to provide evidence and lessons learned on what works and what does not.
Using value chain analysis, market surveys and other analytical approaches, the PSP4H team assesses market dynamics including core elements of supply and demand; formal and informal rules governing behaviours of and interactions between buyers and sellers; incentives (financial and otherwise) motivating the private health sector; and the enabling environment underpinning the performance of the health market such as health policy and regulations. Click on this link to find our research reports.
The team facilitates a portfolio of pilot action research interventions in conjunction with private sector partners to deliver new, pro-poor approaches in health. The interventions are required to be have three components as demonstrated by the Venn diagram below: they have to be within the private sector, for-profit, and serve the poor.
The team works with a combination of on-going and new private sector initiatives to determine if they are financially viable and scalable. PSP4H market interventions target different types of providers (large and small, formal and informal) in priority markets such as maternal-child health, drugs supply chain, diagnostics and health care financing, and include any other priorities that are identified as relevant and viable during our research.