Diabetes prevention is a critical public health priority, due to its significant impact on people’s health and financial well-being. Preventing diabetes can significantly reduce financial burdens on both the individual and healthcare systems. This paper demonstrates how a program such as a social impact bond can be used in the United States to fund a diabetes intervention program that reduces the cost burden of the disease, improves health outcomes, and produces a favorable return to the investor. Our paper includes the following sections:
- What is a social impact bond?
- The model’s construction and assumptions
- Model results & discussion
- Appendix: Savings projections