|SOCIAL IMPACT BONDS||
REDUCING DEVELOPMENT OF TYPE 2 DIABETES IN HIGH-RISK PRE-DIABETICS
Diabetes is a global epidemic. It already affects between 7% and 10% of the global population – the majority of whom are from low and middle income backgrounds – while diabetes-related illnesses already account for over 12% of global healthcare expenditure.
Today, in Israel, there are approximately 450,000 type 2 diabetic patients. Additionally, it is estimated that there are at least an additional 400,000 Israelis who are pre-diabetic. Together, this group makes up over 11% of the population of Israel, making type 2 diabetes one of the most widespread and important medical, societal and economic issues which Israel faces today.
Worse still, by 2030, it is expected that the number of diabetic patients in Israel will increase by a factor of between two and three, meaning that there will be over 1.2m type 2 diabetic patients in Israel out of a population of 9.6 million, or 12.5% of the entire population (in addition to significant growth in the number of pre-diabetic individuals).
Clinical evidence unequivocally shows that In order to prevent development of type 2 diabetes, one must intervene at the pre-diabetic – a condition where some, but not all, of the criteria for type 2 diabetes are met – before the full economic and social consequences of diabetes are manifested. The most effective interventions are in the form of personalised healthy-living, fitness and dietary programmes, tailored to the specific needs of the pre-diabetic individual, in order to improve health and reduce the likelihood of progression to a type 2 diabetic state.
Social Finance Israel is developing a Social Impact Bond in order to raise capital to deliver this important intervention, with the financial return on the Social Impact Bond being justified by the cost savings that are generated from the reduction in cases of type 2 diabetes. Social Finance Israel is working together with its strategic partners in order to develop this personalised intervention programme, as well as measurement tools, diagnostic criteria and economic analysis.
Social Finance Israel at the G8 Social Impact Investment Taskforce
On December 5th, 2013, this Social Impact Bond was presented to the Social Impact Investment Taskforce of the G8. This was one of only a few ocassions that Israel has participated in an official G8 forum.
Social Finance Israel delivered a presentation and policy paper to the Taskfoce, that explained the full details of how this Social Impact Bond may be developed. This paper, Planning a Social Impact Bond to reduce development of type 2 diabetes in high-risk pre-diabetics, was written by:
The presentation that Social Finance Israel delivered to the Social Investment Taskforce of the G8 can be found here.