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


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’)


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


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


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.


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



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.


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


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

Documents

Engaging the Private Sector: Opportunities and Challenges