Focused impact investing in future-proof healthcare

PGGM NL Health seeks investment opportunities that deliver financial returns while strengthening the Dutch healthcare and welfare sector.

In doing so, we fulfil a mandate from the Pensioenfonds Zorg en Welzijn (PFZW). In this role, we are building LIFe (Lifesciences and Healthcare Impact Framework): the impact framework for investments in health and welfare. When investors, healthcare professionals, insurers and policymakers speak the same language, we can invest more effectively in solutions that the healthcare sector truly needs.

No one wants healthcare to become unaffordable, but workloads are high and margins for investment are slim. The challenge is how we can make every euro work harder, so that we strengthen the system and make it future‑proof.

The reason behind the LIFe impact framework

During this search, we encountered a practical question: how do you measure the societal impact of such investments in a consistent way? Many parties use their own methods, and you can’t compare apples to oranges. To change this, we developed the LIFe impact framework together with Invest-NL, Achmea Investment Management, VGZ and CbusineZ.

LIFe provides a shared language and structure to assess the societal value of healthcare investments. The framework looks at five dimensions, based on the quadruple aim: quality, cost, capacity and satisfaction, supplemented by sustainability as the fifth dimension. Investors can place emphasis on the most important dimensions to them. For PGGM, the capacity challenge is particularly relevant, given the pressure PFZW participants experience in their daily work. By using the same yardstick, we speak about the same impact and can collaborate and learn more effectively.

Working together to strengthen the investment chain

In Dutch healthcare, different types of investors each play a role in the chain, from early‑stage initiatives to proven solutions. We usually invest in the phase where innovations are scaled up and brought to market. To deploy available capital more effectively, it is important that the entire chain aligns more closely on what constitutes good impact. That is precisely what we aim to achieve with the LIFe impact framework: a shared standard to assess, monitor and compare investments.

The LIFe impact framework is not a scoring tool. It is a learning and development instrument we use to test, compare and learn from what works and what doesn’t. Healthcare is complex, and so are innovations. Not everything can be expressed in a single number. What we can do is make transparent how we estimate impact, what we measure, and how it evolves. This also helps our clients and their participants understand where their money goes and what it delivers—not only financially, but also socially.

A concrete example is the bed sensor from Momo Medical, which detects when someone gets out of bed. This means nurses no longer have to check in every hour at night, providing peace of mind for both healthcare professionals and residents. When we assess this innovation using the LIFe impact framework, we see impact across multiple dimensions: quality, capacity, satisfaction and cost. This example clearly shows how financial returns and societal impact can go hand in hand.

Moving towards a shared standard

Until now, there has been no uniform standard in the Netherlands for measuring the societal value of healthcare investments. With the LIFe impact framework, we are taking that step. The framework helps investors, healthcare organisations and policymakers make impact visible and comparable. Our goal is for the framework to be applied more broadly, including by other investors. The more parties use the same methodology, the better we can determine together where investments truly make a difference—for the healthcare and welfare sector and for the Netherlands as a whole.

On 18 November, we will present the first version of the LIFe impact framework to a wide audience of impact investors, policymakers, entrepreneurs and healthcare professionals. During this event, we will share not only the structure but also practical examples. Just as important is testing the framework against real‑world practice. Do healthcare professionals recognise this as the impact they are waiting for? Where can we refine it? In this way, we keep the framework dynamic and adaptive, evolving alongside the sector.