Engaging the Private Sector: Opportunities and Challenges

1. Engaging the Private Sector: Opportunities and Challenges Jaime Z. Galvez Tan M.D., M.P.H President, Health Futures Foundation Manila, Philippines

2. Preview of the Presentation • Introduction and Context • Strengths and Opportunities of the Private Sector • Threats and Challenges • What can NGOs offer to the Private Sector • Key Action Points • What Happens when NGOs & Private Sector Work

3. Introduction and Context • Viewpoints of NGOs who have decided to merge the objectives of: • Social Development and Sustainability • Social Health and Entrepreneurship • Compassion for the Underprivileged and Business Efficiency

4. Introduction 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’)

5. Introduction and Context • Definition of the Private Sector: • Private business, commercial for profit sector in the Philippines, not necessarily in the health business.

6. Strengths and Opportunities of the 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 citizens • Open for co-branding • Excellent source of marketing strategies and designs

7. Strengths and Opportunities of the Private Sector - 2 • Locus of management tools e.g. business planning, strategic vision/mission, finance and administration operations, etc. • Source of capital investment funds • Source of endowment and trust funds • Built in quality assurance mechanisms

8. Strengths and Opportunities of the 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.

9. Threats and Challenges • Equity goals sacrificed for efficiency of profits • Involvement mainly motivated by tax breaks • Sees service to the poor as good public relations

10. Threats 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

11. What Can NGOs Offer to the Private 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

12. What Can NGOs Offer to the Private 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

13. Engaging the Private Sector: Key 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

14. Engaging the Private Sector: 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

15. Engaging the Private Sector:Key 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

16. Engaging the Private Sector:Key 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

17. Engaging the Private Sector:Key Action Points - 5 • As fund raisers: resource mobilization; trust fund donors; trust fund management

19. 2000 Organizational milestones Feb 2000 First FriendlyCare clinic opened in Masinag May 2000 FriendlyCare adopts statement of corporate vision, mission, and values June 2000 Marketing strategic framework finalized July 2000 Corporate Office and Shaw ASC inaugurated

20. 52% of clients are returning patients 431 acceptors (Masinag) 357 acceptors (Shaw) 2000 Service Delivery milestones • 22,000 patients served (Feb –December 2000) • In Shaw, more than 1000 women per month avail of FriendlyCare services • 849 new acceptors by December • 1,111 patients counseled on FP • First BTL operation conducted in August 2000;

21. 2000 Operations milestones • First Referral Centers signed-in with FriendlyCare on August 30, 2000 • FriendlyPartners Referrals Plus+ launched in November 2000

22. 2000 Operations milestones • 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.

23. 10-28% of monthly gross sales generated by FriendlyCard 2000 Operations milestones • FriendlyCard launched in September; 1000 members after 5 months (Shaw) • First corporate account signed in April 2000 • For Shaw, first million pesos was reached in 4 months since startup; next million reached in next three (3) months • 94.09% utilization of fund release (as of Mar. 31, 2001

26. 2001 Operations milestones • 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 patientsin January 2001 • Masinag reached its 3rd Million income on the last week of March 2001

30. Clinic Performance Highest Daily Patient Volume Record and Daily Patient Average (Per Clinic)

31. Clinic Performance Average Ticket Per Person Per Clinic

32. Expansion Areas Pangasianan Nueva Vizcaya Metro Manila (10) Pampanga Bulacan Batangas Laguna Cavite Bacolod, Negros Occ. Cagayan de Oro General Santos North Cotabato Current Clinics (5) Metro Manila Shaw Masinag Lagro Pasig San Juan (1) Cebu City (1) Davao City Corporate Direction and Thrusts Current and Future Network of FriendlyCare clinics

34. 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) Bravo Cards Support Services for the FriendlyCare Clinic Getting client feedback

36. Cumulative Financial Report Income vs. Expenditures (3 ASCs)

37. Cumulative Financial Report Sustainability Index (3 ASCs)

38. Cumulative Financial Report Income vs. Expenditures (2 ISCs)

39. Cumulative Financial Report Sustainability Index (2 ISCs)

40. Updates on Alternative Business Models (ABMS) • Todate, thirty (30) overtures have been actually made to FriendlyCare for partnership. • 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.

42. The Impact When NGOs Lock Arms with the Private Sector • Business with a Heart and a Soul • Entrepreneurship with Compassion • Love and Care in a Season of Gains and Profits

43. Thank You Very Much