Health Plus Pharmacies in the Philippines

I have previously blogged about my involvement in a pharmacy-in-a-box project with Freedom from Hunger as well as Living Goods and their Avon-lady sales strategy. The Health Plus Pharmacies program in Philippines is perhaps the model furthest along in terms of implementation and coverage. I wasn't able to find a presence on the web, if anyone knows of one provide a link as a comment.

It launched in 2001 as a project of the Philippines Department of Health and the GTZ German Bank for Reconstruction. The project is called the National Pharmaceutical Foundation Inc. (NPF). The NPF provides 3 franchise shops: a health plus outlet (limited product line, no required pharmacist), a Shop-in-a-shop (counter space in a government pharmacy or coop), and a Health Plus Pharmacy (full product line, full-time pharmacist and part-time doctor required). The NPF provides the business model, handles product distribution, branding, store design, and conducts performance audits.

NGO's or individuals can purchase the franchise. Startup costs for an outlet are US$400. The average franchise fee is US$156 plus .5 percent annual fee of all drug purchases.

Franchisees are able to absorb 70% of the store's income. As of June 2005 there are 317 Rural outlets, four shop-in-a-shop stores, and three pharmacies.

I think the strength of this project is the balance between government oversight and private business. The Department of Health brings key funding and management resources while the franchises themselves function according to the market, and the efforts/quality created by the owners.

I also think the multi-prong shop types gives the venture added depth. The Health Plus outlets, although offering a limited product line, can benefit from the reputation of the full service pharmacies.

Source: Where there are No Jobs vol 4