UBS to Aid Rajasthan in Reducing Infant Mortality Rates

UBS Optimus Foundation has recently announced “world’s first” healthcare development impact bond which will work towards reducing the maternal and infant mortality rates in Rajasthan. It’s named as the Maternal and Newborn Healthcare Development Impact Bond or “Utkrisht Bond”.

However, unlike the development bonds that operates in a traditional sense of fixed income. Rather it’s a performance-based contract in which private investors will extend capital to the intermediaries and service providers.

It will support the government in order to reduce 10,000 maternal and newborn deaths in 5 years. This will be facilitated by improving access to and quality of care in 440 private healthcare facilities in Rajasthan.

UBS foundation will be initially providing USD 3.5 Million. Apart from this, other partners include USAID, Palladium, MSD for Mothers, PSI, and HLFPT. These implementation partners will be acting as co-investors and will contribute more than 20% of the capital required. In addition, MSD and USAID have committed to contribute up to USD 8 Million of funding, provided a set of independently evaluated targets are met.

The success of the bond will be decided if healthcare facilities can achieve new certification standards. These standards are developed by the National Accreditation Board of Hospitals and Healthcare Providers and the Federation of Obstetric and Gynaecological Societies of India.

It’s worth noting that the maternal and infant mortality rates are alarming in Rajasthan. As per the reports, there are 244 maternal deaths per 10,000 births. Besides, 47 infant deaths per 1000 live births take place in the state.