Strengthening ContractingOut in the Private Sector inNicaraguaIn Nicaragua, the ong>Bankingong> on Health Project is supportingthe National Social Security Institute’s (INSS)efforts to contract out a basic package of primaryhealth care services in the private sector. Contractingout is an important mechanism that can increase accessto high-quality reproductive health and other services. ong>Theong>ong>Bankingong> on Health Project is supporting Nicaragua’s effortwith a four-pronged package of technical assistance:n Training delivered to two banks with a health sectorDCA to develop an understanding of Nicaragua’shealth care market and the process of health sectorlendingn Training delivered to private providers contractingwith the INSS to identify bankable projects, helpthem gain access to financing, and improve financialmanagementn Training delivered to private providers to develop anunderstanding of the financial benefits of promotingreproductive health/family planning within the capitatedsystemn Working with the INSS to support the provision offamily planning/reproductive health services withinthe capitated system and to improve the institute’sability to evaluate and certify commercial providers
Promoting Health Sector Lendingong>Theong> ong>Bankingong> on Health Project works with a variety offinancial institutions to promote health sector lending,including commercial banks, microfinance institutions,leasing companies, credit unions and cooperatives, andinvestment funds. We train the management and loan officersof financial institutions in health sector lending and inanalyzing the health care market. We work with bank staffto develop loan products that meet the financing needsof the health sector. We can assist a financial institutionin entering this new market by providing market researchand borrower referrals. We also work closely with USAID’sDevelopment Credit Authority (DCA) guarantee program.If needed, we can structure a loan or portfolio guaranteeto lower a financial institution’s risk in entering the privatehealth market.Improving Credit-Readiness of Private Health Sector Businessesong>Theong> ong>Bankingong> on Health Project provides training and technical assistance to the privatehealth sector to increase access to financing. ong>Theong> project works with health serviceproviders, product manufacturers and distributors, insurance plans, and nongovernmentalorganizations. We work with all sizes of private health care businesses fromsmall-scale, micro providers, such as midwives and drug shops, to large health networksand hospital groups. We support business development services to improve theprivate health sector’s ability to access financing by, for example, offering training inbusiness skills, business planning, loan packaging, and post-loan care. In exchange forour assistance, private providers agree to promote the delivery of family planning andother reproductive health services in a financially sustainable manner.