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Uganda Ministry of Health An Entrepreneurial Solution for Improving Community Health Combining the best practices in franchising, microfinance, and public healthCollaborating with BRAC under the BRAC-Living Goods Partnership Key Partners CORE Group Spring Meeting  May 2011 Molly Christiansen 415-632-1697 | mchristiansen@livinggoods.org | www.livinggoods.org
Living Goods Model ,[object Object]
CHPs sell low-cost high-impact health products priced 10-40% below marketLeverages the combined buying power of many agents to obtain quality medicines at the lowest possible cost  Bypasses most wholesalers, distributors and other middlemen ,[object Object],Retail margins from product sales makes CHPs economically viable;  Wholesale margins contribute to program operating cost, creating financially sustainable model at scale   LG’s diverse product mix drives sales and enables cross-subsidization CHPs sell key health prevention and treatment products, consumer staples and household goods Fast moving items increase frequent home visits and opportunities for client interaction  Branch distribution network within 7km of CHPs where CHPs resupply weekly Low-cost inventory loan for initial products; free “business in a bag” with everything needed to run business.  ,[object Object],[object Object]
Advantages of Entrepreneurial Approach  Income generation for CHW  Retention and motivation of CHWs  Door-to-door sales approach  Frequent household interaction, good customer service, convenience, “on call” trained provider Products, health ed. & referrals  Meets  health needs of community  Sustainable distribution channel/supply chain  >90% in stock rates, flexible, other pro-poor products Community-based care  Reduces workload for public facilities Franchised network Highly scalable Highly cost-effective  Financially sustainable at scale  						          NO-COST CHW network
Harder in very low pop density areas (but as model evolves, will reach further and further) A “cure-most”, not “cure-all” approach - will address many, but not all health problems or populations  Management talent with strong business and operational skills can be hard to find Need right organizational “DNA” –  “enterprise mindset” focused on impact and profit Limitations of Entrepreneurial Approach
 Myth: The poor can’t afford to pay for essential health items Fact: 45% of lowest quintile in 11 SSA countries use private sector (WB Africa Development Indicators 2006) Fact: High OOP health spending even for lowest earners, with high% on pharmaceuticals.  Fact: w/ $$ saved on low prices, transport, & lost income, can be “cheaper than free” Myth: Profit motive and health impact are inherently at odds Fact: strict monitoring and controls can prevent overtreatment.  Fact: Strong CHP health impact metrics correlate with strong sales Fact: Increasing number of private sector, entrepreneurial approaches to poverty alleviation and global health  Myths
DO hire management with appropriate business, sales, and supply chain skills & pay well, including using performance incentives  DO incorporate a diverse product mix to allow for cross subsidization and regular interaction between CHW and households  DO incorporate a rigorous recruitment and selection process for CHWs - find most connected, charismatic, and dedicated women  DO replace low performing CHWs - more bang for buck for org and community DO incorporate incentives to motivate CHWs and for specific health outcomes– “top seller of the month; “most improved”; “Monthly Champions”, cash incentives for pregnancy outcomes, etc.  Entrepreneurial “Do’s”
Community Health Promoter: Zamin Nsibambi Location: Bwaise slum 
Living Goods — The Avon of Village Health ,[object Object]
The population was mostly rural and agricultural
The standard of living was substantially lower
Access to quality products in rural areas was poor
There were strong village social connections

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Compensating & Retaining Community Health Workers_Christianson_5.11.11

  • 1. Uganda Ministry of Health An Entrepreneurial Solution for Improving Community Health Combining the best practices in franchising, microfinance, and public healthCollaborating with BRAC under the BRAC-Living Goods Partnership Key Partners CORE Group Spring Meeting May 2011 Molly Christiansen 415-632-1697 | mchristiansen@livinggoods.org | www.livinggoods.org
  • 2.
  • 3.
  • 4. Advantages of Entrepreneurial Approach Income generation for CHW  Retention and motivation of CHWs Door-to-door sales approach  Frequent household interaction, good customer service, convenience, “on call” trained provider Products, health ed. & referrals  Meets health needs of community Sustainable distribution channel/supply chain  >90% in stock rates, flexible, other pro-poor products Community-based care  Reduces workload for public facilities Franchised network Highly scalable Highly cost-effective  Financially sustainable at scale  NO-COST CHW network
  • 5. Harder in very low pop density areas (but as model evolves, will reach further and further) A “cure-most”, not “cure-all” approach - will address many, but not all health problems or populations Management talent with strong business and operational skills can be hard to find Need right organizational “DNA” – “enterprise mindset” focused on impact and profit Limitations of Entrepreneurial Approach
  • 6. Myth: The poor can’t afford to pay for essential health items Fact: 45% of lowest quintile in 11 SSA countries use private sector (WB Africa Development Indicators 2006) Fact: High OOP health spending even for lowest earners, with high% on pharmaceuticals. Fact: w/ $$ saved on low prices, transport, & lost income, can be “cheaper than free” Myth: Profit motive and health impact are inherently at odds Fact: strict monitoring and controls can prevent overtreatment. Fact: Strong CHP health impact metrics correlate with strong sales Fact: Increasing number of private sector, entrepreneurial approaches to poverty alleviation and global health Myths
  • 7. DO hire management with appropriate business, sales, and supply chain skills & pay well, including using performance incentives DO incorporate a diverse product mix to allow for cross subsidization and regular interaction between CHW and households DO incorporate a rigorous recruitment and selection process for CHWs - find most connected, charismatic, and dedicated women DO replace low performing CHWs - more bang for buck for org and community DO incorporate incentives to motivate CHWs and for specific health outcomes– “top seller of the month; “most improved”; “Monthly Champions”, cash incentives for pregnancy outcomes, etc. Entrepreneurial “Do’s”
  • 8. Community Health Promoter: Zamin Nsibambi Location: Bwaise slum 
  • 9.
  • 10. The population was mostly rural and agricultural
  • 11. The standard of living was substantially lower
  • 12. Access to quality products in rural areas was poor
  • 13. There were strong village social connections
  • 14. Targeted to rural women needing extra incomeToday Avon sells over $10 billion and thrives in 140 diverse cultures – from Peru to the Philippines. >> There is a compelling analogy between the conditions that provided the fertile ground for Avon over 100 years ago and the developing world today. >> If Avon can build a $10 B direct selling business with products that are purely discretionary, imagine this models’ potential impact if harnessed to promote products that people desperately needed.
  • 15. Thank you Phone: 415-632-1697Email: mchristiansen@livinggoods.orgWeb: www.livinggoods.org
  • 16. Health Promoter Supports Free Training Free Health Promoter Toolkit:- Backpack - Locking Storage Chest- Uniform- Signage- Record Books- Health Tools Access to Low Cost Products Subsidized Promotions Low Cost Inventory Loan Ongoing Coaching and Training Branch distribution system within ~7km of CHPs where CHPs re-supply weekly
  • 17. The Living Goods Health Business in a Bag Locking Storage and Display Cell phone Measuring Tape Thermometer Breath Timer for ARI Diagnosis Visual Referral Guide Visual Dosage Guide Visual Training Tools on 17 Key Health Behaviors Shoulder Bag Branded Signage Whistle Training Certificate Branded Apron Branded Tee Shirt Price List Sales Register 2 Pocket Money Pouch Umbrella Medication Instructions Form Referral Form
  • 18. Living Goods Products Oral Contraceptive Condoms Clean Birth Kit De-worming Pain/Cold/Cough Antacid Anti Fungal Soaps Feminine Pads Tooth care Diapers Water Filter Solar Lanterns Water Treatments ORS / Diarrhea Treatments Malaria Treatment Treated Bed Nets Fortified Foods + Vitamins