HealthStore's Franchise Approach to Healthcare

Submitted by Rob Katz on November 22, 2005 - 16:15.
Published in: |
Date of talk or publication:
November 2005
Organization:
World Resources Institute
Description:
The non-profit HealthStore Foundation (HS) (formerly Sustainable Healthcare Enterprise Foundation) was founded in 1997 to “prevent needless death and illness by sustainably improving access to essential medicines.” HS’s sixty-four for-profit HealthStore franchises serve roughly 400,000 patients per year; by 2008, it plans to expand its network to over 200 locations serving 1.5 million patients per year.

Each HealthStore franchise is owned and operated by a licensed nurse practitioner or by a community health worker with a nurse on staff, enabling outlets to offer a wide range of products and services. With locations in underserved villages and urban areas throughout Kenya, HealthStore clinics provide access to much-needed healthcare, while generating enough revenue to pay their nurse-owners and staff a competitive annual salary.

The HealthStore micro-franchise model gives local entrepreneurs the opportunity to own and operate sustainable, profitable businesses while simultaneously curtailing incentives for corruption, as franchisees risk losing their business if they fail to comply with franchise regulations. By aligning the incentives of customers, government regulators, and owner-operators, HealthStore’s franchise model is able to deliver a high quality of care to previously underserved Kenyans while realizing a healthy return on investment.

Read the full-length business case study, What Works: HealthStore's Franchise Approach to Healthcare - Harnessing the profit motive to deliver public health in Kenya by downloading the PDF file found below. Case study authors Michelle Fertig and Herc Tzaras share their thoughts on healthcare delivery at the BOP in an in-depth interview.
AttachmentSize
HealthStore.pdf839.84 KB
HealthStore ExecSum.pdf93.48 KB
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Submitted by Carol on November 25, 2005 - 10:09.
Hello, Thanks for introducing healthcare to help the needy here i Kenya unfortumately i come from one of the most rural areas and i have never seen an affordable healthcare facility in my locality and would like to know if they are there how are they called? and how can I and me my locality benefit from such program? Thank you. Carol
Submitted by Rob Katz on November 28, 2005 - 07:49.
Carol's comment speaks to the scale of HealthStore's model more than anything. Right now, there are 64 HealthStore shops and clinics located in 3 regions of Kenya - with more to come as the central franchisor perfects the model and recruits nurses and community health workers to own and staff the locations. HealthStores are sometimes located in communities with no other healthcare provider, or where government dispensaries are woefully understocked. This is only one benefit that HealthStore brings to rural communities.
Submitted by John on November 29, 2005 - 05:37.
Am very much touched by the Kitune Health project. In Kenya, not only health care is required, water too. Why cant the donor community try to sink boreholes at least in every village. This will sort out the hunger and HIV/Aids rate in the country. I have tried to write a water supply proposal to many donors, but the reply I get is that "No funds at the moment". Am asking, why can the donor community turn their ears to water matters? and hunger in Kenya will be no more. Thanks
Submitted by Carol on December 1, 2005 - 09:03.
Thanks for your information but at least you should consider the most rural areas where people are still living in the phenomenon of wife inheritance, teenage pregnancy, witch craft, rape and so on. We the poor are the ones suffering at the benefit of others, there are so many nurses and health workers without work and they are willing to work anywhere as long as they help others, these are the ones born with the heart of helping others and you know, such nurses/healthworkers are hard to find yet they are the ones who are jobless, can they be considered? Please consider us and help us live an affordable life with affordable healthcare facilities, we walk long distance just to go for treatement and this has caused many deaths due to the long delay to the hospital, just initiate something worthy and simple to help the needy Kenyans. Thanks once again.

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