More than a billion people worldwide lack adequate access to healthcare. The affordability and availability of healthcare is further impacted by a challenging macroeconomic environment worldwide, in developing economies and developed countries alike. Helping to address this global challenge is a key theme in Baxter’s commitment to sustainability. The company’s broad approach includes product development, strategic philanthropic giving and product donations targeted at those most in need.
While access to healthcare is a challenge worldwide, companies have an opportunity to deliver healthcare solutions specifically for those at the “base of the pyramid” (BoP).1 Although Baxter has worked in emerging economies for numerous years, developing products particularly suited to those at the BoP is an emerging area of its sustainability and business strategy.
In 2008, Baxter began to analyze its portfolio to identify existing products as well as product development opportunities to meet the needs of these populations. Current products particularly well suited to emerging economies and potentially to the BoP have the following characteristics: long shelf life, little or no required refrigeration, low dependency on healthcare infrastructure (such as hospitals, clinics and skilled medical staff), non-complex technology and low cost. In 2009, Baxter will develop a list of the highest potential product opportunities and assess the feasibility of making those products more accessible.
Baxter also assessed research and development (R&D) investment levels in this area in 2008, which will help the company set targets to increase future spending.
Working closely with organizations that focus on the main disease states related to Baxter's businesses such as hemophilia and immune disorders is another way that Baxter promotes access to healthcare. In 2008, the company established a council to collect and review Baxter's U.S. cash philanthropic contributions. Decision-making is decentralized, as local managers and employees can best determine the appropriateness of a contribution in their community. The council assesses how to most effectively use these data to guide Baxter’s efforts to enhance healthcare in ways that are globally relevant and applicable to all of the company’s businesses.
Product donations also play an important role in making Baxter products available to people in need. Baxter works with product donation partners that extend its reach – primarily AmeriCares and Direct Relief International – to understand their supply needs and help make critical products available where and when needed. In 2008, Baxter donated and shipped $10.9 million of medical products to benefit people in 58 countries.
As part of these donations, Baxter provides targeted support in times of crisis. For example, the company assisted individuals affected by an earthquake in China and a cyclone in Myanmar, both in 2008, by donating nearly $2.4 million in Baxter products to humanitarian organizations working in the affected regions.
Baxter also facilitates access to its products through support of non-profit organizations such as the World Federation of Hemophilia. Baxter is a founding member and lead contributor to the organization’s Global Alliance for Progress (GAP) program, which works to improve the diagnosis and treatment of hemophilia in developing countries. Baxter donated more than 600,000 units of recombinant factor VIII to the GAP program in 2008.
Finally, Baxter contributes products through its patient assistance programs, which provide continued access to products when a patient experiences a lapse in insurance coverage or faces other challenges that limit access. These contributions equaled $2.54 million in 2008.
GOALS
- By 2010, assess existing products for relevance to the “base of the pyramid” ¹ (developing economies) and identify high-impact, economically viable product opportunities.
- Increase R&D investment from 2008 to improve access to healthcare for the “base of the pyramid.”
- Establish a council to assess U.S. philanthropic giving, and develop and implement a strategy to align efforts with public policy priorities to enhance healthcare. By 2010, assess a percentage of Baxter’s total giving to healthcare programs.
- Work with donor partners to develop and implement a strategic product donation plan beginning in 2010 that includes: being the first on the scene following disasters and tragedies, contributing most needed products to stabilize supply, and contributing most needed products in least developed and developing economies.
“ Baxter is a key contributor to not only our disaster-specific relief efforts, but towards expanding our ability to provide ongoing medical assistance to help more people live longer, healthier lives. Baxter's generous product donations play an important role in helping us achieve our mission and improve access to medicines around the world.”
President and CEO, AmeriCares
1 The term “base of the pyramid” refers to the roughly four billion people who live on less than $4 per day per capita, mostly in developing countries. Many companies have typically developed and marketed products and services for people at the “top of the pyramid.” In recent years, more companies have extended product and service offerings to the “middle of the pyramid,” often referred to as an “emerging economy” strategy.
