Status: Approved May 2008
Since: new
MicroClinic
Progress
Leadership
Problem
 MicroClinic opened its first
hub in Ghana in summer ‘08.
 Kojo (Ben) Taylor is a Ghanaian who
moved to Minneapolis and started a
franchise business offering online
training. He sold the successful
company and launched MicroClinic,
funding the nonprofit with part of the
sale’s proceeds.
 Many of the diseases of the world’s poor are
easily treatable. But partly due to a lack of
knowledge and access to basic health products,
each year 1 million people die of malaria1 and 2
million from diarrhea-related causes2.
Mission
 To dramatically improve the quality and access
to healthcare for the poor in Africa.
Analysis
 This is one of our 4 key investments in the field of health franchising.
Very similar to HealthStore, but the key difference is that MicroClinic
combines the physical health clinic with the mobile salesperson on the
street and on the motorbike. As such, it is seeking to tackle the entire
health pyramid below the urban hospital -- an ambitious and more
perilous undertaking that could open affordable healthcare to the poor.
 Taylor is taking a two-track path to growth, launching simultaneously in
Ghana and soon in Uganda. He has partners who have connections and
a passion for establishing a parallel organization in Uganda.
 The weakness in Taylor’s plan is the high capital cost ($22k+) to build
new structures for the MicroClinics, which may increase the debt burden
beyond the capacity and risk appetite of potential franchisees.
 Average yearly sales of $11,245 per MicroClinic store, with a
franchisee gross margin of 45% and 6,500 patient visits per year.
Concept
 Begin with a medical office staffed by a
physician that acts as a “hub” for a networked
ring of health services.
 The hub supports and is surrounded by a series
of “microclinics” operated by nurseentrepreneurs, who refer more difficult cases to
the physician and receive inventory from the hub.
 Each nurse-run health clinic is in turn encircled
by mobile salespeople who offer over-the-counter
products that promote health and hygiene, such
as insecticide-treated bed nets, oral rehydration
salts, and sanitary pads.
 At each level, franchising principles are
employed to ensure quality, consistency, benefits
of scale, and drive profits to every member of the
value chain, from the doctor to the village seller.
 Nurse-entrepreneurs operating MicroClinic outlets would earn an
annual income of $5,138 before debt and interest for capital costs.
Plan for Scale
2008
2009
2010
Model
2011
2012
2013
mobile sellers
mobile sellers
(villagers)
New MicroClinics
3
20
75
100
150
(villagers)
200
MicroClinic
Total MicroClinics
3
23
98
198
348
548
Revenue at MicroClinic
stores (franchisees)
$16.9k
$146k
$680k
$1.66M
$3.07M
$5.04M
Revenue to MicroClinic
(franchisor organization)
$13k
$98k
$401k
$734k
$1.25M
$1.92M
Operating costs
($214k)
($373k)
($500k)
($654k)
($762k)
($1.0M)
MicroClinic:
(nurse)
(nurse)
Hub
(doctor)
MicroClinic:
mobile sellers
Capital spending, inventory
($37k)
($506k)
($1.9M)
($2.6M)
($3.9M)
($5.2M)
US costs
($77k)
($82k)
($109k)
($130k)
($140k)
($158k)
Profit / Loss
(funding need)
($315k)
($746k)
($2.0M)
($2.4M)
($3.3M)
($4.2M)
DWFF contact: Josh Kwan, Director of International Giving. joshkwan.dwff@gmail.com
Updated: 9/08. Site visit: n/a. www.microclinics.com
1World
Health Organization, 2USAID
(nurse)
(villagers)
mobile sellers
MicroClinic:
(villagers)
(nurse)
 Market-driven approach relies on two forms of
payment: out-of-pocket from individuals and
reimbursement from govt insurance plan.
 Extend credit to nurses to join franchise and
build MicroClinic, to be repaid over time.
 “Avon Lady” village sellers, men on motorbikes.