Budget Allocations for Public Health Procurement

This work examines budget allocation decisions in public health within the framework of the Global Fund’s financing for HIV, tuberculosis, and malaria programs. We first develop a model for donors to allocate budgets between public and private distribution channels to optimize treatment outcomes and propose a modified greedy heuristic. We then present a model for grant recipients to allocate budgets among various disease-specific health products and propose an index heuristic. Numerical evaluations of these heuristics demonstrate their significant impact on system outcomes and superior performance compared to benchmark policies.