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The Challenge

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How might we use social business to improve health in low-income communities? Read the challenge brief

Concept

Franchise Health Clinic Network

Franchise Health Clinic Network is a franchise system of distribution of health clinic centered around qualified nurses as entrepreneurs in remote areas in Caldas. The health clinic serves as a basic clinic and drug stores, while maintaining a high standard of medical services that is governed by the Franchise Health Clinic Network. The qualified nurses provide basic diagnostic support, maintain a digital database of patients’ health information, and exchange that information with urban medical centers or universities for more detailed diagnostic support (e.g. www.sanamobile.org). The local clinics are financed through a combination of individual investments, MFI loans, and subsidy or donation. Nurses become franchisees after all loans are repaid. The result is better medical services in remote regions while helping the economy through a locally operated franchise. By providing the most basic medical services and bulk-buying of medical supplies throughout the region, a lower cost could be maintained.

Basic health-care access to remote regions

By providing the clinics in remote areas of Caldas, the Franchised Health Clinic Network helps with the distribution of clinics in much needed areas in addition to current network. By focusing very few basic health care services in close proximity to population in need, especially to children and women, while more serious problems can be relayed to urban clinics centered around universities or medical centers, the model could be successful.

Digital Patient Database Caldas

By maintaining a digital patient database of the patients, a history of health information with particular patients can be created for better treatment and medicine. These could also be valuable case studies for treatment used by all clinics within the network.The information collected over the wider region of Caldas would also be valuable for the study of trend data for macro health care plans over a longer period of time. Serious case could also be relayed digitally to relevant doctors in this network for further treatments locally.

Franchise model

The franchise model becomes a reliable model of distribution because a same standard of medical services are enforced throughout the franchise to build a brand identity. And patients come to use the services because of such identity. By focusing on the most basic medical services and bulk-buying of medical supplies throughout the region, a lower cost could be maintained. One-time costs such as digital equipments or construction could be donated or financed through micro-financing loans ,while the ongoing expenses are tied into a sustainable profit making business plan of the franchisee. There has been success through similar approach through CFWshops in Kenya, or Aravind Eye Care's Vision for India.

Empowering locals

By empowering local qualified nurses, they become local entrepreneurs that contribute to the local economy (e.g. hiring staff and paying for essential local services for the clinic).

OpenIdeo Collaborations

During the week of consultation we have added a few edits to our original submission. A mobile unit is added to extend the accessibility of the franchise health clinic network to even more remote regions. The unit could be an investment in a motorcycle or scooter to give speed to the service in rugged landscape of Caldas (compared to bike), and also to limit the cost of the investment (compared to an ambulance). A "herbal" extension is also added so that the franchisee could opt for a herbal line of business should they have the additional investment to do so. This herbal extension would also operate with the principles of the franchise, meaning that it would be standardized over the network to maintain a high quality of medical results. 

Credits to our collaborators:
Sergio Olavarrieta
Mira Rao
Sarah Fathallah

Thanks for your suggestions and criticisms!


Eric

How do you envision this idea making money?

The local qualified nurse double as an entrepreneur (franchisee), putting down an initial investment and loan from MFI, while selling quality medical services and medicine at a below-market price to the local inhabitants. The franchisee maintains a profit by selling
a combination of medical services, medicine and health products. By providing the most basic medical services and bulk-buying of medical supplies throughout the region, a lower cost could be maintained. Government subsidy and/or donor money maybe essential to keep the price of essential medicine low, while other products in the shop will be sold to generate a sustainable income.

How does this idea create social impact, particularly around improving health?

A medical network that has quality medicine provided in vicinity of the inhabitants in need, the database system also helps define health policies in the longer run.

How does this idea add social value at every step of the process?

More extensive health-care network, improving health of local inhabitants, empowering local nurses as entrepreneurs, and building a network of community around the local clinics.

1

How well do you think this concept considers life in low-income communities?

It is highly relevant to low-income communities
It is somewhat relevant to low-income communities
It does not significantly consider low-income communities
2

How effectively does this concept use social business principles (that is, it has social benefits for the community but does not pay dividends?)

This concept uses social business principles very well
This concept could be easily modified to incorporate social business elements
This concept does not connect with social business very well
3

How easy would it be to implement this concept?

Easy! This could be started immediately
It would take some time and planning – but I bet I could see progress in the near future
This concept would need extensive planning, partnerships & resources in place to get going
4

To what extent will this concept improve people’s health?

This concept would significantly improve people’s health and wellbeing
This concept seems like it might improve health, although maybe indirectly
This concept doesn’t really have much to do with health
5

Overall, how do you feel about this concept?

It rocked my world!
I liked it but preferred others
It didn’t get me overly excited
1

How well do you think this concept considers life in low-income communities?

2

How effectively does this concept use social business principles (that is, it has social benefits for the community but does not pay dividends?)

3

How easy would it be to implement this concept?

4

To what extent will this concept improve people’s health?

5

Overall, how do you feel about this concept?

6

Any other feedback or comments you’d like to share with Grameen Creative Lab and the OpenIDEO team? These comments will not be shared publicly.

Comments

Join the conversation and post a comment.

March 20, 2012, 03:36PM
I think that the franchise model is an important step for putting solutions in the hands of those in the community -- thus solving both health and economic challenges in one fell swoop.

If we look beyond this particular community context, I think there are important ways of scaling this idea to nations/communities where there ARE health clinics, but where important health issues still need to be addressed, specifically with regard to PREVENTATIVE health.

I am interested in holistic preventive medicine as a way of reducing the systemic factors that lead to health problems. One issue that does not get addressed nearly enough is stress and depression. I read recently that soon depression will be among the most prevalent health issues in the world. I was recently involved in a community health center research project in the US, which found that the number one self-assessed health factor in urban communities was the STRESS of living in that community itself (not having enough money to meet family needs, no accessibility to efficient transportation, high rates of crime and violence) -- which leads to chronic health problems such as heart disease to obesity, alcoholism and suicide.

Those with economic means can go on vacation to "get away from it all," can afford yoga classes and massages, and have the time and money to exercise. Those without, don't.

What if we could bring holistic preventative measures to low-income communities, while at the same time creating economic opportunity?

I think the franchise model you have developed would be suitable here -- health clinics may exist in some communities, but community members could still be given the capital and training necessary to open their own PREVENTATIVE health centers that could serve as urban/rural oases, create job opportunities, and increase the overall health of community members without them having to "get away."

  
December 09, 2011, 12:35PM
One way of enriching this process is for the Franchised Health Clinic Network to focus on health promotion and prevention and the treatment of disease.

Most illnesses that are dealt with hospitals are of a preventative nature yet these ailments contribute to a large portion of the disease burden and to the hospital budget. Such diseases include HIV/ Aids, nutrition related diseases in children or ailments related to lifestyle factors in teens and adults (diabetes, hypertension, obesity, alcoholism and drug addictions).

By focusing on prevention and treatment, greater health benefits will be felt in the community in Caldas. The prevention programs can be run by the nurses unlike disease treatment in which complex ailments would require a doctor.

This would also relieve the disease burden on the health centre and free the hospital resources to focus on non- preventable conditions thus providing better service.

Once way in which the health promotion and prevention campaigns could happen is for the Franchised Health Clinic Network to include incentive- based health promoting activities within the Clinics with the collaboration and support of government.

Funding and setting up these units will be done by Franchised Health Clinic Network.

Government could provide a legislative framework that will make possible a partnership with Franchised Health Clinic Network. The enterprise will get rebates or exemptions on taxes as a reward for establishing health promotion units within these centers.

Franchised Health Network could also set up partnerships with private business who will contribute to the health promoting initiative and in turn benefit from increased sales traffic brought about by a loyalty card system issued by Franchised Health Clinic Network.

Individual beneficiaries visiting the health promotion unit will earn points redeemable as cash or discounts on purchase of merchandise or services from participating companies.

Health promotion will be done through creating awareness for current health issues, training, counselling, and distribution of health promoting products and HIV / AIDS prevention campaigns through a loyalty card reward system.

The centre could comprise the following facilities:

• A Mother and Child Facility
• Training zones
• An innovative housing section
• Disease screening and testing
• Health products distribution
• Exhibition areas

This will earn money for users of the centre and increase sales for the participating companies by channelling traffic to the business outlets.

The overall effect would be as follows:

• Better health for mother and child and a reduction in child mortality rates in the community through education, prevention and treatment.
• Better community health through early screening to identify treatable conditions
• Improved nutrition and community health.
• An increase in awareness of lifestyle factors that promote health
• Promotion of innovative, cost effective, safe and sustainable building techniques and products that will promote health and safety in the community.
• An Increase in disposable income of the community through savings and cash rewards offered to those using the centres.
• Publicity to the businesses brought about by the loyalty program and increased traffic to outlets; thus improving sales
• Business expansion and creation of job opportunities for the community through increased profits brought about by the rewards program.

Profits will be reinvested in more Franchised Health Clinic Network clinics, with increasing health benefits to the community.

July 22, 2011, 11:37PM
I love this concept which seeks to address the issue of lack of availability of quality health service providers.

Besides availability and quality, the third issue is affordability which you propose to address by subsidizing the cost of medicines and buying in bulk. After piloting a few to ensure that you have your operating protocols clear, getting one large investment to create many franchise at once will also cut down costs. Affordability can also be addressed by linking to another Grameen social business Bienestar, the health insurance pilot project that It offers patients a card for ca. $5 per year that gives patients access to a network of doctors and healthcare centers offering the patient services and medicine for up to 60% cheaper than standard costs. Bienestar could be effectively linked to the franchise of clinics.

The mobile unit idea that was later added is also very key for two reasons:
a) many people who live in remote areas may not be able to afford the transport to even get to a clinic; and if possible, the mobile unit can provide emergency transport
b) the mobile unit can provide routine surveillance of remote areas for any disease outbreaks, preparing the clinics and larger health networks for better and quicker responses
July 11, 2011, 03:36AM
Your idea really evolve pretty good :)... The Franchise could make oir other ideas possible, because it has one precise skill: quality thru standarization.

This is for me a way of really attend Caldas problems, because it's professional and precise. And that's what people in need depends on, someone taking their problems as serious as paid-doctors do.

I love the empowering of the local!!!
July 07, 2011, 12:53PM
Your idea is great, but MFI is always a big problem in every country they steps in (they are responsible for the crisis in Argentina, Russia and -we expect not to happen- in Greece). If not as a franchise, it could be useful that medical universities have in Caldas a trainee camp for future doctors and nurses.

The medical supplies could be find by sponsors (farmaceutical are the most profitable companies in the whole world).
Architecture Commons 's reply to Meghan Mahoney's comment
July 07, 2011, 01:48PM
Sergio, yes you are quite right, MFI does have its problems, one potential scenario is to lower the loan as much as possible so that one-time-costs such as facility and equipments can be covered by one-time donations.

I guess the challenge is to strike deals with pharmaceutical companies to maintain a constant supply of medical supplies, which is also a tough road because that deal would have to be renewed for example yearly, which is great if it is achievable.

(See Irune's Inspiration on Dispensaries in Ecuador)
http://www.openideo.com/open/how-might-we-improve-health-care-through-social-business-in-low-income-communities/inspiration/dispensaries-health-projects-to-look-at-and-re-think

It would be ideal to gauge how to make a profitable margin given cost of medical supplies and the right price-point that local people can afford (medical & local experts?), even in the case when we don't have a sustainable subsidy from foreign entities, any thoughts?

Sergio Olavarrieta's reply to Meghan Mahoney's comment
July 07, 2011, 09:46PM
Yes, pharmaceuticals are the big quest, but remmember, not everything should be allopathy. Homeopathy could be very useful, it's less quick but it works. Or herbalist could be also good, because I think people in Caldas have their own remedies, but maybe they're not developed to attack the illness we now. So, it could be very interesting that an herbalist laboratory makes medicines there, so also you can sell them in other places.

What do you think? This is a way of creating a whole enterprise there.
Architecture Commons 's reply to Meghan Mahoney's comment
July 09, 2011, 01:24PM
Sergio, that's an interesting point of tapping the wisdom of local medicine, it would be useful to understand how they specifically tackle the high priority illnesses of the region. Def could become a business model!
Sergio Olavarrieta's reply to Meghan Mahoney's comment
July 10, 2011, 12:13AM
I decided to upload the "herbalism business model". I hope you can give me a comment there, or maybe better, built on that.

http://www.openideo.com/open/how-might-we-improve-health-care-through-social-business-in-low-income-communities/concepting/roots-women-roots-herbolaria/

Thanks
July 06, 2011, 05:22PM
I love the franchise model of this concept! What about adding a mobile health unit as a franchise option - this would add to the accessibility of basic health care services. And I think the idea of buying medical supplies in bulk as a group is great!
Architecture Commons 's reply to Meghan Mahoney's comment
July 06, 2011, 06:12PM
Mira, that is a good idea. The alternative add-on options to the basic clinic could be very feasible and adaptable to different situations. E.g. mobile units as you said, or other incremental investments to perfect the store!
July 06, 2011, 03:23PM
Good thinking here, Eric.
There was an idea form an earlier challenge that could help shape your concept in terms of adapting the clinics to the rural environment: http://bit.ly/iiG8Pc
Architecture Commons 's reply to Meghan Mahoney's comment
July 06, 2011, 06:09PM
That's a great pointer. Thanks Sarah!
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