GF/B23/DP09
Approved by the Board on: 12 May 2011
Plan for Comprehensive Reform: Value for Money
- The Board recognizes that the Global Fund is well-positioned to drive value for money and should leverage its role as the primary financier of essential health products so as to improve quality, price, design, and sustainable supply. In this context the Board asks the Market Dynamics Committee to propose to the Twenty-Fourth Board meeting expanded uses for the MDC's "toolkit" of interventions- including opt-out mechanisms.
- When value for money efforts generate savings, the normal consequence is that such savings should stay in countries to scale up efforts against one or more of the three diseases.
- In order to drive value for money, the Board requests the Secretariat to:
i. Take all necessary and appropriate measures to (1) fully implement voluntary pooled procurement (VPP) and (2) aggressively execute the Market Dynamics Committee recommendations.
ii. Work with the MDC to determine reference prices to establish maximum levels of Global Fund payments for appropriate products. Reference prices should be set at the lowest accessible competitive price consistent with well-functioning and sustainable markets, recognizing differences according to country income and disease burden.
iii. Set limits on how much support the Global Fund will provide in categories of expenditure where there is a risk of overuse or inefficiency ("yellow light" items, e.g., vehicles).
iv. Work proactively with Principal Recipients (PRs) and Country Coordinating Mechanisms (CCMs) to use reprogramming within countries to ensure increased use of cost-effective interventions to maximize health impact. The Secretariat should incorporate guidance from technical partners to help guide this reprogramming. - In the context of reporting to the Board on the Global Fund's portfolio and its impact on the three diseases, the Secretariat is asked to provide an annual report on its value for money work, including quantified results in terms of savings and additional coverage or impact.