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Improving Health Outcomes through the use of Mobile Financial Services
By mPay Connect, Inc.
Presented for the mHealth Working Group
May 28, 2013
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Background
How can MFS be used in Health?
In what ways can MFS improve Health Outcomes?
Examples
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• 20 years of experience in mobile, high tech, alternative payments with 7 years of experience in mobile financial services
• Founder of mPay Connect Consulting Services, Former PayPal Exec
• Harvard BA in Economics, Wharton MBA
• Mobile Financial Services Publications Include: “Advancing the dialog on Mobile Finance and Mobile Health: Country Case Studies,” by
Menekse Gencer and Jody Ranck for The mHealth Alliance, February 2012. “Amplifying the Impact: Examining the Intersection of Mobile Health and Mobile
Finance,” by Menekse Gencer for The World Economic Forum Davos Summit, February 2011
“Mobile Money: The Foundation for Food Security,” by Menekse Gencer for Innovations Magazine, MIT Press, 2/2012
“The Mobile Money Movement(TM): Catalyst to Jumpstart Emerging Markets,” by Menekse Gencer for Innovations Magazine, MIT Press, 12/2010
“Jamaican Regulatory Overview” by Camille Busette and Menekse Gencer for The Inter-American Development Bank, 10/2010
“Jamaican Gender Issues and Mobile Financial Services Report,” by M. Gencer for The Inter-American Development Bank, 11/10
Menekse Gencer Bio
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What is Mobile Money?
Using the mobile phone as a channelto conduct payments, account management, and
other financial services
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In what ways can MFS be used in Health?
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HR / Administrative Level
WHO-MNCH Continuum of
Care
Pre-Pregnancy Pregnancy Birth Postnatal
Provider / Service Level
Patient Level
• Salary disbursements to trainers, healthcare workers, and midwives• Performance-based funding for healthcare providers• Conditional cash transfers to patients• Expense payouts
• Voucher-based settlement (e.g. child immunizations)
• Payment for ambulatory transport• Pre-paid savings accounts
• (Micro) Insurance premiums / claims payouts
• Pay for mHealth information (voice, text, or subscription)
• Supply chain settlement (e.g. pharmaceutical, supplies)
• Pay for eHealth data retrieval / decision support services• Settlement for testing, labs, remote diagnostics
• Pay for reminders, appointments, scheduling
• Co-payments for healthcare services• Money transfers among family members for healthcare payment
mPesa - Kenya
SmartMoney - PhilippinesChangampka - Kenya
Tigo Cash - Ghana
Marie Stopes, Madagascar
CDC FoundationGCash – Philippines
mPesa - Kenya
mPesa – KenyaSmart Money - Philippines
• Account RegistrationDigicel - Haiti
Marie Stopes, Philippines
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How does MFS improve Health Outcomes?
Better Business Models
New Revenue Sources
Remote Payments of Services
Motivate Patients
Motivate Providers
Higher Quality of Care
Greater Access to Care
Alternative funding mechanisms for
Patients
Alternative funding for Providers
Motivate New Providers
Lower Costs
More time care giving, less time on
administration
• Sharing operations• Reducing manual
cash management costs
• Reducing fraud and theft
• Subsidizing patient fees through new value chain participants
• Faster payment of vouchers, performance-based funding, supply chain settlement, and salaries• Faster payment of conditional cash transfers
• Credit for retailers distributing health products
• Faster payment motivates new players to provide services
• New access to savings, insurance, and credit to help pay for health services
• Enabling ability to pay for remote services consumed through remote mobile money service
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• Automating payments processing reduces errors
• Mobile Money reduces time spent traveling for cash
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In what ways can MFS be used in Health?New Models for Subsidies in Ghana Tigo
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MNO
Customer
1. Buys AirtimeAccumulates Loyalty PointsIs eligible for “free life insurance”
2. Pays Premiums
4b. Pays claimsPayouts (future through Tigo Cash)
4a. Pays claimsPayouts (future)
3. Pays claims (today)
Insurance Co.
Better Business Models
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In what ways can MFS be used in Health?Sharing Operations through common Agent Networks
mHealthEducate
and Market
Identify and
Register
Distribute and
Service
Monitor and Report
mFinanceEducate
and Market
Identify and
Register
Distribute and
Service
Monitor and Report
For health services
For financial services
For health services
For financial services
Health services and products
For financial services and products
Health outcomes
Financial history
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Better Business Models
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In what ways can MFS be used in Health?Improving provider participation throughMobile Vouchers, Cash Transfers, and Supply Chain Settlement
Higher Quality of Care
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In what ways can MFS be used in Health?Health Accounts for the uninsured
Health Account
(1) Pay Provider
Held atFinancial Institution
Card Payments
Companion Virtual Card generated on Mobile Phone
(1) Revenue: Transaction Fee
Money In
• Customer deposits• Customer auto-
deposit from other savings account
• Conditional cash transfers, vouchers, or other government or NGO deposits (1)
• Health credit
• Health insurance claim
• Subsidies of MNO or other interested party (e.g. for achieving minimum airtime usage per month)
Money Out: Health Provider Payments
OR
Payments PlatformHSA Program
Greater Access to Care
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Challenges
Sustainable business models that scale
Understanding two complex verticals at once
(regulatory, key players, technical, business models)
Market-to-market nuances for implementation and
timing