Innovating for the Health Care Safety Net: Sources of Funding

A significant need exists for new medical technologies that have the potential to expand access to important diagnostics, treatments, and specialty services by reducing costs without sacrificing quality. These technologies have a high social value because they can help transform the way health care is delivered to underserved populations. Unfortunately, they may not necessarily generate the high financial returns expected by the types of investors who typically fund the development and commercialization of new technologies. This paper examines funding for new medical technologies, particularly traditional financing mechanisms and the barriers that commercial investment criteria create for medical technology innovations with high social value but relatively low potential returns. It then proposes alternative funding solutions for important technologies that could benefit environments with low levels of resources.