Engaging the Private Sector: Opportunities and Challenges
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Transcript of Engaging the Private Sector: Opportunities and Challenges
Engaging the Private Sector: Engaging the Private Sector: Opportunities and ChallengesOpportunities and Challenges
Jaime Z. Galvez Tan M.D., M.P.H
President, Health Futures Foundation
Manila, Philippines
Preview of the PresentationPreview of the Presentation
Introduction and ContextStrengths and Opportunities of the Private
SectorThreats and Challenges What can NGOs offer to the Private SectorKey Action PointsWhat Happens when NGOs & Private
Sector Work
Introduction and ContextIntroduction and Context
Viewpoints of NGOs who have decided to merge the objectives of:
Social Development and SustainabilitySocial Health and EntrepreneurshipCompassion for the Underprivileged and
Business Efficiency
Introduction and ContextIntroduction and Context
Mainly Philippine Experiences from:
FriendlyCare Foundation Inc.Health Futures Foundation Inc.National Pharmaceutical Foundation Inc.Association of Workers in the Seed of
Health (“Botika Binhi’)
Introduction and ContextIntroduction and Context
Definition of the Private Sector:
Private business, commercial for profit sector in the Philippines, not necessarily in the health business.
Strengths and Opportunities of Strengths and Opportunities of the Private Sectorthe Private Sector
Interested to expand their markets to the “C” and “D” segments beyond their usual “A” and “B” markets
Willingness to partner as corporate citizensOpen for co-brandingExcellent source of marketing strategies and
designs
Strengths and Opportunities of Strengths and Opportunities of the Private Sector - 2the Private Sector - 2
Locus of management tools e.g. business planning, strategic vision/mission, finance and administration operations, etc.
Source of capital investment fundsSource of endowment and trust fundsBuilt in quality assurance mechanisms
Strengths and Opportunities of Strengths and Opportunities of the Private Sector - 3the Private Sector - 3
History of affirmative action especially for children in especially difficult circumstances; education scholarships for girls and women and other marginalized children and adolescents etc.
Threats and ChallengesThreats and Challenges
Equity goals sacrificed for efficiency of profits
Involvement mainly motivated by tax breaks
Sees service to the poor as good public relations
Threats and Challenges - 2Threats and Challenges - 2
Tendency to exploit women labor e.g. lower pay, longer working hours, contractual work
View of labor as purely human capital in need of maintaining productivity outputs
If affected by an economic crisis, 1st to be given up are social objectives and causes
Can be ruthless and dictatorial when resolving economic downturns
What Can NGOs Offer to the What Can NGOs Offer to the Private SectorPrivate Sector
A social cause, a no-nonsense advocacy, affirmative action
Goodwill, friendship and a humanitarian worldview
Insights and inroads to low and middle income market segments
Access to community perspectives, dynamics and contacts
What Can NGOs Offer to the What Can NGOs Offer to the Private Sector - 2Private Sector - 2
Plenty of “feel good” experiences, “pay it forward” opportunities, a shining moment
A chance to make life better and create health and well-being for their workforce
The possibility and likelihood of a real success story of a social health entrepreneurship
Engaging the Private Sector: Engaging the Private Sector: Key Action PointsKey Action Points
As Board of Trustees: prestigious presence; advisers; constructive critics of operations
As Spokespersons: high profile advocates; organizers within the business community; credibility providers
With their companies as role models: excellent examples of affirmative action in health; quality outlets of health services
Engaging the Private Sector:Engaging the Private Sector: Key Action Points - 2 Key Action Points - 2
As corporate sponsors: co-branding partners; events organizers; high visibility providers
As producers of public service multi-media advertisements: market enlarger; product enhancer
Engaging the Private Sector:Engaging the Private Sector:Key Action Points - 3Key Action Points - 3
As a source of creative ideas and marketing designs: logos; taglines; brand name development; market surveys’ customer pre-tests; market analysis; market segmentation; customer satisfaction surveys
Engaging the Private Sector:Engaging the Private Sector:Key Action Points - 4Key Action Points - 4
As a wellspring of business management tools: business planning; cost and price analysis; strategic vision, mission and goal setting; systems operations in administration, finance, accounting and auditing; branch management operations; human resource management and team building
Engaging the Private Sector:Engaging the Private Sector:Key Action Points - 5Key Action Points - 5
As fund raisers: resource mobilization; trust fund donors; trust fund management
The David and Lucile Packard Foundation FriendlyCare Foundation, Inc.
The FriendlyCare Clinic - Exterior
Feb 2000 Feb 2000 First FriendlyCare clinic opened in First FriendlyCare clinic opened in MasinagMasinag
May 2000 May 2000 FriendlyCare adopts statement of FriendlyCare adopts statement of corporate vision, mission, and corporate vision, mission, and valuesvalues
June 2000 June 2000 Marketing strategic framework Marketing strategic framework finalizedfinalized
July 2000 July 2000 Corporate Office and Shaw ASC Corporate Office and Shaw ASC inauguratedinaugurated
20002000 Organizational Organizational milestonesmilestones
52% of 52% of clients are clients are returning returning patients patients 431 acceptors 431 acceptors
(Masinag)(Masinag)
357 acceptors 357 acceptors (Shaw)(Shaw)
• 22,000 patients served (Feb –December 22,000 patients served (Feb –December 2000)2000)
• In Shaw, more than 1000 women per month In Shaw, more than 1000 women per month avail of FriendlyCare servicesavail of FriendlyCare services
• 849 new acceptors by December849 new acceptors by December
• 1,111 patients counseled on FP1,111 patients counseled on FP
• First BTL operation conducted in August First BTL operation conducted in August 2000;2000;
20002000 Service Delivery Service Delivery milestonesmilestones
• First Referral Centers signed-in with FriendlyCare on August 30, 2000
• FriendlyPartners Referrals Plus+ launched in November 2000
20002000 Operations Operations milestonesmilestones
• First FriendlyCare Affiliate enrolled on October 27, 2000 in Davao City
• First potential business partner expressed keen interest in franchising the FriendlyCare Clinic in Cebu City on September 5, 2000. Now, with 17 other potential business partners that expressed keen interest on the FriendlyCare Clinic.
20002000 Operations Operations milestonesmilestones
10-28% of monthly gross
sales generated by FriendlyCard
• FriendlyCard launched in FriendlyCard launched in September; 1000 members after 5 September; 1000 members after 5 months (Shaw)months (Shaw)
• First corporate account signed in First corporate account signed in April 2000April 2000
• For Shaw, first million pesos was For Shaw, first million pesos was reached in 4 months since startup; reached in 4 months since startup; next million reached in next three next million reached in next three (3) months(3) months
• 94.09% utilization of fund release 94.09% utilization of fund release (as of Mar. 31, 2001(as of Mar. 31, 2001
20002000 Operations Operations milestonesmilestones
The David and Lucile Packard Foundation FriendlyCare Foundation, Inc.
Isang taong paniguro. Sagot na ang konsulta mo, may discount pa sa x-ray at laboratoryo. Plus P 50,000
accident insurance. With extension card.
P 400.00
lamang
FriendlyCare Products FriendlyCard is worth US$8 for a 12-month “bottom-less” consultation in
any FriendlyCare Clinic, including discounts for selected laboratory services. This is extended to each immediate family member of the
principal cardholder for an additional US$4.
The David and Lucile Packard Foundation FriendlyCare Foundation, Inc.
FriendlyCare ProductsOne-time Use FriendlyCare Service Cards are used to introduce new
clients to the clinic.
Entitles the bearer to 1 medical check-up, including urinalysis & hemoglobin in any FriendlyCare clinic.
Entitles the cardholder to other health service packages in any FriendlyCare Clinic.
(This is a variation of service package entitlements.)
Entitles the cardholder to family planning counseling and contraceptive service of her/his choice.
Shaw Clinic:• Shaw reached its 3rd Million
income on the third week of March 2001
• Its 10,000th new client was registered on March 14, 2001
• Its 10th Vasectomy client was operated on last March 26, 2001
Masinag Clinic:• Masinag had its highest monthly
patient volume at 2,630 patients in January 2001
• Masinag reached its 3rd Million income on the last week of March 2001
20012001Operations Operations milestonesmilestones
• Over 100,000 clients served since January 2001
• Average of 527 clients served by all clinics per day or more than 10,000 clients per month
Total Clients in All ClinicsJan-Oct 2001
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
All Clinics 6,307 6,479 8,244 4,843 7,430 8,333 10,187 10,678 11,720 14,238
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
No. of Clients Who Go to FriendlyCare Clinics for FPAll clinics, April-Aug 2001
0
100
200
300
400
500
600
700
800
900
All Clinics 248 373 559 646 813
April May June July Aug
Clinic Performance
237
124
271
82
63
35.33
135
40
19
47
14.29
0
50
100
150
200
250
300
Pat
ient
Vol
ume
Per
Clin
ic
Shaw Masinag Lagro Pasig Davao Cebu
Clinic Name
Highest Daily Patient Volume Daily Average
Highest Daily Patient Volume Record and Daily Patient Average (Per Clinic)
Clinic Performance
166.33
221.29
275.3 278.26
153.08
203.93 195.1
0
100
200
300
Masinag Shaw Davao Lagro
2000
2001
2000 2001
Average Ticket Per Person Per ClinicAverage Ticket Per Person Per Clinic
Current ClinicsCurrent Clinics(5) Metro Manila(5) Metro Manila
Shaw Shaw MasinagMasinag
LagroLagro PasigPasig
San JuanSan Juan(1) Cebu City(1) Cebu City
(1) Davao City(1) Davao City
Expansion AreasExpansion AreasPangasiananPangasiananNueva VizcayaNueva VizcayaMetro Manila (10)Metro Manila (10)PampangaPampangaBulacanBulacanBatangasBatangasLagunaLagunaCaviteCaviteBacolod, Negros Occ.Bacolod, Negros Occ.Cagayan de OroCagayan de OroGeneral SantosGeneral SantosNorth CotabatoNorth Cotabato
Current and Future Network of FriendlyCare clinicsCurrent and Future Network of FriendlyCare clinics
Corporate Direction and Thrusts
The David and Lucile Packard Foundation FriendlyCare Foundation, Inc.
FriendlyCare Foundation, Inc.
Standard Standard Technical Technical Specifications of Specifications of Equipment and Equipment and FacilitiesFacilities
MANUAL OF OPERATIONS
FriendlyCare Foundation, Inc.
Monitoring and Monitoring and EvaluationEvaluation
MANUAL OF OPERATIONS
Establishing quality standards
Development of protocols, standards, and management systems
Support Services for the FriendlyCare Clinic
Bravo Cards
What our clients say:
88% felt they received the service they wanted (FriendlyCare Shaw)
Mabilis ang serbisyo; good and nice clinic; malinis; Friendly and approachable staff (FriendlyCare Davao)
Getting client feedback
Support Services for the FriendlyCare Clinic
Sustainability
Shaw 50%
Masinag 54%
Lagro 28%
Cebu 26%
Davao 17%
San Juan 17%Pasig 11%
As of Sept. 30, 2001
Initial GainsInitial Gains
Cumulative Financial Report
Income vs. Expenditures (3 ASCs)Shaw ASC
Income vs. ExpendituresJ uly 10, 2000 to March 31, 2001
-
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
1 2 3 4 5 6 7 8 9
Month
Income
Expenditures
Davao ASCIncome vs. Expenditures
October 20, 2000 to March 31, 2001
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
900,000.00
1 2 3 4 5 6
Month
IncomeExpenditures
Cebu ASCIncome vs. Expenditures
February 8 to March 31, 2001
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
900,000.00
1,000,000.00
1 2
Month
IncomeExpenditures
Cumulative Financial ReportSustainability Index (3 ASCs)
Shaw ASCSustainability Index
J uly 10, 2000 to March 31, 2001
9.1%
24.9%
38.5% 38.1%
33.0%
27.1%
40.7%
44.2%
52.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
1 2 3 4 5 6 7 8 9
Month
Per
cen
tage
Davao ASCSustainability Index
October 20, 2000 to March 31, 2001
1.8%
10.6%
6.3%8.2%
12.7% 13.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
1 2 3 4 5 6
Month
Cebu ASCSustainability Index
February 8 to March 31, 2001
2.9%
9.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
1 2
Month
Per
cen
tage
Cumulative Financial ReportIncome vs. Expenditures (2 ISCs)
Masinag ISCIncome vs. Expenditures
February 7, 2000 to March 31, 2001
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
800,000.00
900,000.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Month
Pes
os
IncomeExpenditures
Lagro ISCIncome vs. Expenditures
December 8, 2000 to March 31, 2001
-
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
700,000.00
1 2 3 4
Month
Peso
s
IncomeExpenditures
Cumulative Financial ReportSustainability Index (2 ISCs)
Masinag ISCSustainability Index
February 7, 2000 to March 31, 2001
7.0%
24.3% 25.4% 25.4%27.9%
32.6%
41.3%43.3%
36.1%
21.0%
40.2%
45.3%
55.5%51.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Month
Lagro ISCSustainability Index
December 8, 2000 to March 31, 2001
6.9%
11.8%
16.5%
28.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
1 2 3 4
Month
•Todate, thirty (30) overtures have been actually made to FriendlyCare for partnership.
Updates on Alternative Business Models (ABMS)
•Initial discussions and meetings have been carried out; Memo of Intent signed.
•About thirty percent (30%) are actually ready to start negotiations/ operations in the first year.
• 20% of TOTAL expenses recovered from total revenues
• 35% of OPERATIONAL expenses recovered from total revenues
Sustainability Targets: 2003
Dec 2000 5%
Aug 2001 15%
Sept 2003
(Target) 20%
Moving aheadMoving ahead
The Impact When NGOs Lock The Impact When NGOs Lock Arms with the Private SectorArms with the Private Sector
Business with a Heart and a Soul
Entrepreneurship with Compassion
Love and Care in a Season of Gains and Profits
Thank You Thank You Very MuchVery Much