The healthstore foundation

The HealthStore Foundation® A US 501(c)(3) nonprofit corporation celebrating its 10th year Improving Access to Life-Saving Medicines Through Micro-Franchising Preliminary Strategic Plan Overview Executing 2007-2009 www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 1 The HealthStore Foundation’s Mission To improve ACCESS to essential drugs, basic healthcare, and prevention services for children and families in the developing world using business models that are scalable, maintain standards, and achieve economies of scale. www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 2 The Public Health Crisis • • • Approximately 30,000 children die each day in the developing world because they lack access to medicines that cost less than a cup of coffee A short list of preventable and treatable diseases accounts for approximately 70% of childhood illness and death These needless deaths occur because hundreds of millions of people lack access to high-quality essential drugs, diagnostic and treatment services, or preventative health products Photo courtesy of Scott Davis www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 3 Three Criteria for Success To be successful, any large-scale public health intervention must meet 3 criteria: • Maintains Standards: so that patients are properly diagnosed and drugs are pure and efficacious, ensuring effective patient treatment • Is Scalable: so that there are many locations where patients can access drugs and services, each point of access maintaining consistent standards Achieves Economies of Scale: so that the cost per unit of service rendered decreases as the network grows • www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 4 The Franchise Solution • Maintains Standards… Franchise networks maintain consistent standards throughout large numbers of geographically dispersed outlets • Is Scalable… Franchise networks can scale extraordinarily quickly. e.g. Subway has scaled from 16 to over 27,000 outlets in 86 countries in 33 years Photo courtesy Scott Davis • Achieves Economies of Scale… Franchise networks achieve economies of scale in advertising, distribution, information systems, risk management, training, and supplies www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 5 The HealthStore Franchise Method The HealthStore Foundation seeks to eliminate needless suffering and death by adapting the commercial franchise model to establish, improve, and expand health networks that serve the world’s poor www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 6 CFWshops Kenya In 1999, The HealthStore Foundation® launched CFWshops, a branded franchise network of health outlets in Kenya. CFWshops Kenya is our pioneering application of the franchise model to distribute essential drugs and basic health services. The CFWshops network has grown to 65 drug shops and primary care clinics owned and operated by Kenyan nurses and health workers in rural Kenya. To date, the CFWshops network has served well over 1 million patients. www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 7 CFWshops Kenya Bringing Franchise Success to Health Care • • • • • Kenyan nurses and health workers own and operate their own small CFW Clinics or Shops Each CFW franchisee undergoes a rigorous and standard four-week training program into the CFWshops franchise system Franchise controls and regulations ensure that strict standards are followed regarding products, procedures, prices, and recordkeeping The CFWshops Kenya network maintains standards through supervision and monitoring Non-compliance results in revocation of franchise opportunity Building to scale of over 250 locations will reduce the treatment cost per patient to less than U.S.D. $1 per patient per year. Community outreach programs strengthen the health-seeking practices of the community while providing valuable marketing exposure for the local CFW outlet The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 • • www.healthstore.org Contact: scott@cfwshops.org +1 (612) 730-5884 8 CFWshops Kenya The Power to Grow Quickly and Reach Millions Year 2004 Clinics and Shops Open 68 Year 2005 63 Year 2006 62 Patient Treatments: •Malaria •Respiratory Infection •Worms •Diarrheal Disease •Bed Nets Sold •All Other Total Patient Treatments www.healthstore.org Contact: scott@cfwshops.org 32,714 45,824 17,544 16,115 2,203 71,637 186,037 63,948 84,980 31,944 33,244 20,475 169,910 Photo courtesy The HealthStore Foundation 53,311 77,763 40,033 14,937 14,542 165,594 366,180 404,501 The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 9 Three-Part Strategic Plan The HealthStore Foundation® I. Technical Assistance Development Projects II. Franchise Labs, LLC III. Special Projects at the Bottom of the Pyramid www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 10 Technical Assistance The HealthStore Foundation® uses the tools and lessons learned in Kenya to help others launch franchise health networks in developing countries around the world The HealthStore Foundation® I. Technical Assistance II. Franchise Labs, LLC III. Special Projects at the Bottom of the Pyramid www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 11 Technical Assistance Taking the CFWshops Brand to Other Countries Branded Networks The CFWshops Kenya network of 65 drug shops and medical clinics has served over 1,000,000 patients since we launched it in 1999. We are now taking this brand to other countries. www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 12 Technical Assistance Assisting Independently-Branded Health Networks • MicroClinics (Ghana): A new franchise network of clinics to be launched in 2007 in the Central Region of Ghana by a team of Ghanaian businesspeople • KGVK (India): A new franchise network that will be launched by BK Jhawar’s NGO in NE India. Mr. Jhawar is a successful Indian industrialist and CEO of Usha Martin, a wire rope manufacturer. • • Succour to the World Foundation (Nigeria): A new franchise network started by a Nigerian pharmacist who was inspired by the story of CFWshops Kenya Kazakhstan: The HealthStore Foundation® is considering involvement in launching a franchise health network in Kazakhstan www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 13 Franchise Labs, LLC Franchise Labs will offer services and tools to leaders wishing to launch franchise health networks in the developing world. The HealthStore Foundation® I. Technical Assistance II. Franchise Labs, LLC III. Special Projects at the Bottom of the Pyramid www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 14 Franchise Labs, LLC Training Leaders to Launch Franchise Health Networks Around the World Franchise Labs Will Offer • Short Courses of five to ten days in major cities, e.g. Geneva, Delhi, and open to interested leaders from the fields of public policy, business, health, development, franchising, etc. • Longer Courses of one to four weeks in conjunction with a business school and designed for those actively involved in launching franchise health networks, giving participants a thorough understanding of the nuts and bolts of franchising and its theoretical basis. • Practical Tools such as financial planning workbooks, training materials and model formularies for those launching franchise health networks • Franchise and Public Health Mentors helping to guide new franchise networks to success www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 15 Special Projects The HealthStore is using its knowledge of health markets at the bottom of the pyramid to partner with large multi-national companies to develop mutually advantageous opportunities to market products and improve health in developing countries Foundation® As outlined by C.K. Prahalad in The Fortune at the Bottom of the Pyramid, masses of poor people in the developing world constitute a huge and untapped market…if companies learn how to sell high volumes at low margins The HealthStore Foundation® I. Technical Assistance II. Franchise Labs, LLC III. Special Projects at the Bottom of the Pyramid www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 16 Special Projects Unilever Distributes Oral Rehydration Salts • • Shakti, a project of Hindustan Lever, an Indian division of Unilever , is a network of 30,000 women distributing Unilever products door to door in rural India. The HealthStore Foundation® asked Unilever to add oral rehydration salts to Shakti’s product mix. Oral rehydration salts (ORS), which cost about 5 cents per treatment, can help save some of the hundreds of thousands of Indian children who die of dehydration in rural India each year. • The HealthStore Foundation® arranged for Cipla, a large Indian generic drug manufacturer, to provide ORS to Unilever at cost. Subsequently, Unilever has begun a pilot program through Shakti, selling ORS at cost and educating villagers about diarrhea. If this pilot is successful, Unilever will expand distribution of ORS through its entire Shakti network, and millions of Indians will have access to this life-saving over-thecounter product. • www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 17 Special Projects Distributing Procter & Gamble’s PUR • • • • P&G’s PUR turns turbid, muddy water into potable water in only 30 minutes In a 2004 test in Liberia, PUR reduced diarrhea by 90% over 12 weeks. Procter & Gamble has begun distributing its PUR water-purifying product through the CFW outlets in Kenya. P&G has also agreed to distribute other P&G health products through mobile community health workers based at CFW clinics This is an exciting partnership to develop markets at the economic base of the pyramid Photo courtesy of Scott Davis • www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 18 Special Projects ExxonMobil Foundation Funds Coartem Pilot • Funded by ExxonMobil Foundation, CFW Kenya is participating in implementation research on the introduction and distribution of Coartem, a powerful new anti-malaria medicine. With the ExxonMobil grant, CFW Kenya is working with the Kenya Ministry of Health, the WHO office in Kenya, and the Implementation Research Department of the WHO in Geneva. This collaborative study and project is enabling CFW outlets to access subsidized Coartem, purchase rapid malaria diagnostic kits, improve control over drug supplies, train nurses, and educate villagers on improved management of malaria. www.healthstore.org Contact: scott@cfwshops.org • • The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 19 Special Projects Health Financing • • The HealthStore Foundation® intends to design and implement an innovative health financing mechanism for use in franchise health networks. In regions where franchise networks cannot be sustained solely by selling products and services to poor customers, franchisees will be reimbursed for the full cost of drugs and services rendered by a combination of a patient co-pay and 3rd-party reimbursement Franchisees will only be reimbursed when they deliver drugs and services in compliance with standards Bulk-funding of franchisors will be minimized so that franchisors only increase their revenue when more franchisees serve more patients according to standards Such franchise networks will be attractive to donors, governments, and multi-lateral aid agencies as a viable solution to re-route billions of dollars that are currently used to bulk-fund unaccountable and inefficient bureaucracies. The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 • • • www.healthstore.org Contact: scott@cfwshops.org +1 (612) 730-5884 20 Appendix A The HealthStore Foundation® Board of Directors • James H. Amos, Jr.* Chairman/CEO, Sona Med Spa; Chairman Emeritus, Mail Boxes, Etc.; Former Chairman, International Franchise Association • • Mark Benson President, APCO Insight Hon. Rudy Boschwitz (Ret.) Former U.S. Senator, Chairman of Home Valu Interiors • Ward Brehm Chairman of the United States African Development Foundation, Founder and President of The Brehm Group • Dr. Denis Broun* Country Coordinator of UNAIDS India (*Executive Committee Member) www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 21 Appendix A The HealthStore Foundation® Board of Directors • • • Steve Greenbaum* CEO, PostNet William F. Haddad Chairman/CEO, Biogenerics, Inc. Charles Hart* President, The HealthStore Foundation® • • • Scott Hillstrom, J.D.* Chairman, The HealthStore Foundation®; CEO, Guardian Law Group Kaye Kirsch Administrative Director, Sewa Ashram Edward G. Martin, MBA Marketing Director, American Council United Nations University, Millennium Project (*Executive Committee Member) www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 22 Appendix A The HealthStore Foundation® Board of Directors • • • • Greg Nelson, MBA, CPA* President of Rotherwood Investments, LLC Dr. Eva Ombaka* Coordinator of Ecumenical Pharmaceutical Network Colin Owen Mission of Mercy Pastor Rick Warren Author of The Purpose-Driven Life Pastor of Saddleback Church in Orange County, California • Tim Wicks, MBA* Senior VP of Product Development and Management,at United Healthcare (*Executive Committee Member) www.healthstore.org Contact: scott@cfwshops.org The HealthStore Foundation 527 Marquette Ave., Suite 1800 – Minneapolis, MN 55402 +1 (612) 730-5884 23