SHOPS Plus Highlights Role of Private Sector in Domestic Resource Mobilization for Health

The pursuit of universal health coverage (UHC) typically relies on domestic resource mobilization (DRM), with the government as the primary stakeholder responsible for raising and managing funds for health, often through taxes. Given declining donor comitments, limited capacity to fund and manage public health finances, and increasing demand and costs for health care, many nations advancing toward UHC are seeking innovative ways to raise additional revenues to fund health.

It’s understood that the private sector has the potential to be a vital, much-needed source of additional resources that fill health funding gaps and support the Sustainable Development Goals. However, there is no consensus on what private sector DRM actually looks like, or its realistic potential. USAID’s Abt-led SHOPS Plus project developed a primer to help define DRM for health through a private sector lens, and illustrate ways to mobilize local private resources for health with a focus on family planning. The primer includes lessons learned and recommendations for donors who want to support private sector DRM for health.

Promoting private sector engagement for health, including DRM, has been a priority for SHOPS Plus. For example, earlier this year, Abt staff shared the concept during a session at the Prince Mahidol Award Conference (PMAC), an annual international conference in Thailand that focuses on global health policy and health systems.

According to Abt’s Jeanna Holtz, “There is growing consensus that universal health coverage—with equity, quality, and financial protection—takes root by tapping assets of the total health system, including the private sector.”  As stakeholders—including SHOPS Plus--continue to build on that consensus, the promise of DRM for health comes closer to fruition.

To learn more, check out the primer on private sector DRM.