How we are working towards a sustainable sector

At PGGM, we invest on behalf of our client PFZW in the health and welfare sector. After receiving the go-ahead from PFZW, a specialised team started exploring the first investment opportunities. Our commitment is clear: to make a visible contribution to the health and welfare transition in the Netherlands. We focus on innovations that help keep health and welfare accessible, with the primary goal of creating more capacity in the sector. 

Our strategy 
The investment strategy focuses on three areas: new technology, new ways of organising, and health and welfare real estate. Within each area, we apply the quadruple aim, an internationally recognised framework widely used in the Dutch health and welfare sector to improve health and wellbeing. This framework sets out four goals: improved population health, lower healthcare costs, greater patient satisfaction and increased job satisfaction among care professionals. Each area contributes to these pillars, with its own balance of risk, return and approach. 

New technology: innovating to create more care capacity 
Until 2030, €100 million has been allocated to new technology. This includes digital applications and medical technology that support care professionals, make processes more efficient and thereby create more care capacity. We provide growth capital, often in partnership with investors who also bring expertise. Technologies may start in the Netherlands and expand internationally, or vice versa. The key requirement is for the impact to be visible in the Netherlands. 

A good example is Momo Medical, developer of the BedSense system. The application uses bed sensors to give care staff insight and oversight into the situation of all residents in a nursing home. This means nurses no longer need to make standard rounds but can provide targeted support instead. The result is greater efficiency and a better night’s sleep for patients. The technology is growing rapidly: this year, it has been installed in more than 20,000 beds across the Netherlands and is now being rolled out internationally. 

New ways of organising: investing in health and prevention 
This area represents an innovative approach to social and health challenges, focusing on prevention and community-based solutions. With this strategy, we aim to invest in smart initiatives that bring together municipalities, insurers and social entrepreneurs to design and deliver preventive solutions proven to reduce the demand for care. This approach reflects a broader shift from Illness, Care and Institutions to Behaviour, Health and Community. 

PGGM has reserved between €25 million and €50 million on behalf of PFZW for this purpose. Health Impact Bonds (HIBs) are a key instrument in this approach. These impact loans support social entrepreneurs developing innovative, preventive concepts and interventions, particularly for groups with poorer health outcomes and higher care costs, such as older people, those with chronic conditions and people in lower socioeconomic groups. 

A good example is the fall-prevention programme Stevig Staan, in which private investors finance the implementation of a recognised training programme for older people. Municipalities and insurers, such as VGZ and CZ, act as outcome payers, reimbursing investors when demonstrable reductions in falls, demand for professional care and related healthcare costs are achieved. This approach combines social benefit with financial discipline and shows that public bodies are also willing to invest in interventions with proven impact. Stevig Staan illustrates how outcome-based financing can embed prevention structurally within the health and welfare system. 

Health and welfare real estate: innovative real estate solutions supporting the health and welfare transition  
PGGM has reserved between €150 million and €200 million on behalf of PFZW to provide loans for health and welfare real estate projects in the Netherlands. The investment strategy focuses on innovative real estate concepts that support future-proof elderly care, strengthen primary care and help transform secondary and tertiary care. As a result, these investments can indirectly contribute to reducing the demand for care and promoting more effective and efficient care processes. Examples include small-scale, clustered housing for older people, close to support and care services, which contribute to reducing loneliness and relieving pressure on homecare staff. 

The strength of integration 
What sets this approach apart is its integrated perspective across different domains. Technology can enhance health and welfare real estate, while new ways of organising sometimes require new forms of housing, and all three domains focus on advancing the health and welfare transition in the Netherlands. 

With a compact core team, we combine expertise in credit, growth capital, real estate, health and the Dutch health and welfare sector, allowing us to make the most of synergies across domains 

The challenges in healthcare are complex and urgent: staff shortages, rising costs and significant health inequalities between population groups. Some markets are still underdeveloped, yet it is precisely there that opportunities arise to create social impact while also achieving financial returns. We believe in solutions that deliver returns and at the same time contribute to sustainable health and welfare for PFZW’s participants and their employers in the sector. 

For questions or investment proposals, please contact:
New Technology: Linze Dijkstra, linze.dijkstra@pggm.nl
New Ways of Organising: Marijke Bos, marijke.bos@pggm.nl
Health and Welfare Real Estate Credit: Bart Reidsma, bart.reidsma@pggm.nl