Aidmatrix Opens a Network of Health Care Solutions: Improved Access for the Uninsured across America and across the globe
Location
Aidmatrix partnered with the National Association of Free Clinics (NAFC) to build capacity in the health care sector. The NAFC strives to support the 45 million uninsured in the U.S. (Robert Wood Johnson, 2005), mostly the working poor. Free Clinics serve a critical role, but struggle with a lack of funds to purchase medicines and supplies.
In our first effort, began in 2005, we pioneered a cutting-edge technology for Free Health Clinics to receive donations. FreeClinicLinkTM (FCL) is an internet portal automating transactions -- producing cost savings and cumulative value benefit - in real time, on a 24/7 basis. These solutions enable Free Clinics to serve more people in need more efficiently. Free Clinics now accept donations easily, drastically reducing the labor intensive process. The system allows corporate donors to easily support free clinics through the U.S. The estimated 1,100 Free Clinics nationally spend an estimated $170 million on medication per year, using a significant amount of their budget. On the other hand, in the U.S. alone, billions of dollars of medical supplies end up as surplus or are sent to landfills as waste.
In 2006 we added a second dimension to FreeClinicLink - product purchasing power through aggregation of needs and better cost-negotiation leverage on behalf of its’ members. Fighting diabetes is one of the main focuses of the clinics so we tackled diabetic supplies first. We surveyed clinics nationally and found that they paid $36 on average, for a vial of 50 diabetic strips. By aggregating their purchasing power, we now offer 50 strips for $11.00. This allows the Free Clinics to save $14 million annually. The next step is to increase the breadth of available products. At the first NAFC national conference in 2006, we surveyed the clinics for the top 100 most used products. We negotiated pricing and added them to FCL in the spring of 2007. We now feature over 150 products and are negotiating to provide discounted dental supplies.
About You
Location
Project Street Address
Project City
Project Province/State
Project Postal/Zip Code
Project Country
Your idea
Focus of activity
Technology
Year the initiative began (yyyy)
2005
Positioning of your initiative on the mosaic diagram
Which of these barriers is the primary focus of your work?
Complex, expensive medicine
Which of the principles is the primary focus of your work?
Simplify through technology
If you believe some other barrier or principle should be included in the mosaic, please describe it and how it would affect the positioning of your initiative in the mosaic:
This field has not been completed
Name Your Project
Aidmatrix Opens a Network of Health Care Solutions: Improved Access for the Uninsured across America and across the globe
Describe Your Idea
Aidmatrix partnered with the National Association of Free Clinics (NAFC) to build capacity in the health care sector. The NAFC strives to support the 45 million uninsured in the U.S. (Robert Wood Johnson, 2005), mostly the working poor. Free Clinics serve a critical role, but struggle with a lack of funds to purchase medicines and supplies.
In our first effort, began in 2005, we pioneered a cutting-edge technology for Free Health Clinics to receive donations. FreeClinicLinkTM (FCL) is an internet portal automating transactions -- producing cost savings and cumulative value benefit - in real time, on a 24/7 basis. These solutions enable Free Clinics to serve more people in need more efficiently. Free Clinics now accept donations easily, drastically reducing the labor intensive process. The system allows corporate donors to easily support free clinics through the U.S. The estimated 1,100 Free Clinics nationally spend an estimated $170 million on medication per year, using a significant amount of their budget. On the other hand, in the U.S. alone, billions of dollars of medical supplies end up as surplus or are sent to landfills as waste.
In 2006 we added a second dimension to FreeClinicLink - product purchasing power through aggregation of needs and better cost-negotiation leverage on behalf of its’ members. Fighting diabetes is one of the main focuses of the clinics so we tackled diabetic supplies first. We surveyed clinics nationally and found that they paid $36 on average, for a vial of 50 diabetic strips. By aggregating their purchasing power, we now offer 50 strips for $11.00. This allows the Free Clinics to save $14 million annually. The next step is to increase the breadth of available products. At the first NAFC national conference in 2006, we surveyed the clinics for the top 100 most used products. We negotiated pricing and added them to FCL in the spring of 2007. We now feature over 150 products and are negotiating to provide discounted dental supplies.
Innovation
Define the innovation
Aidmatrix partnered with the National Association of Free Clinics (NAFC) to build capacity in the health care sector. The NAFC strives to support the 45 million uninsured in the U.S. (Robert Wood Johnson, 2005), mostly the working poor. Free Clinics serve a critical role, but struggle with a lack of funds to purchase medicines and supplies.
In our first effort, began in 2005, we pioneered a cutting-edge technology for Free Health Clinics to receive donations. FreeClinicLinkTM (FCL) is an internet portal automating transactions -- producing cost savings and cumulative value benefit - in real time, on a 24/7 basis. These solutions enable Free Clinics to serve more people in need more efficiently. Free Clinics now accept donations easily, drastically reducing the labor intensive process. The system allows corporate donors to easily support free clinics through the U.S. The estimated 1,100 Free Clinics nationally spend an estimated $170 million on medication per year, using a significant amount of their budget. On the other hand, in the U.S. alone, billions of dollars of medical supplies end up as surplus or are sent to landfills as waste.
In 2006 we added a second dimension to FreeClinicLink - product purchasing power through aggregation of needs and better cost-negotiation leverage on behalf of its’ members. Fighting diabetes is one of the main focuses of the clinics so we tackled diabetic supplies first. We surveyed clinics nationally and found that they paid $36 on average, for a vial of 50 diabetic strips. By aggregating their purchasing power, we now offer 50 strips for $11.00. This allows the Free Clinics to save $14 million annually. The next step is to increase the breadth of available products. At the first NAFC national conference in 2006, we surveyed the clinics for the top 100 most used products. We negotiated pricing and added them to FCL in the spring of 2007. We now feature over 150 products and are negotiating to provide discounted dental supplies.
Context for Disruption:
By leveraging the power of the network we can multiply the cost and time savings.
• Clinics are saving money on purchases and donated products. Going forward the goal is to increase the savings. Individually, clinics will be able to save thousands of dollars. In the long term, new supply of income will allow for more medical professionals to be hired and therefore more people to be treated.
• The FCL goal is to facilitate ‘one stop shopping’ for the clinics. The network saves them time if they can use one system for procurement of supplies rather than registering and learning multiple systems. The efficiencies are designed to build capacity for the clinics in the long term.
• In addition, Aidmatrix and the NAFC are committed to adding new functionality that will assist clinics in reducing their: labor, total spending on medicines and supplies, and cost of ownership for technology.
• Corporations can now easily support a national domestic organization. It’s easy and it makes good business sense. The system tracks their offers and corporations can aggregate their donations - to capture their humanitarian efforts, for tax purposes, etc. The NAFC vets the clinics so corporate donors know the donated products are going to those in need.
• Also, the NAFC provides a lobbyist group bent on improving clinic needs. They recently helped pass a law that would allow Free Clinics to qualify for the Tort Claims Act. If for some reason a Free Clinic was in a mal-practice lawsuit, the department of justice would not just cover their legal fees, free of charge, but they would also serve as their lawyer. The Aidmatrix solution FreeClinicLink, can alleviate the struggle of many obstacles by offering reduced product acquisition, building the communication and information bridge, and providing a powerful partner who negotiates with industry related companies and government officials for all Free Clinics nationwide.
Delivery Model
The NAFC, founded in 2001, is in the early-development stage. Aidmatrix partnered to help NAFC grow and serve the uninsured. We've built strong collaborations before, with America’s Second Harvest (A2H). A2H was founded 30 years ago and has the staffing and infrastructure to efficiently manage the rollout of technology. A2H uses four major systems, developed by Aidmatrix, to manage their daily operations:
•Donor Express - processes hundreds of national donation offers daily
•Agency Express – allows agencies to order food directly from the food banks
•The Choice System – allows food banks to share donations among themselves with a points system developed in conjunction with the University of Chicago, and the
•Virtual Food Drive™ – an online fundraising program
A2H systems evolved and now these same technologies are activated worldwide to help other developing food bank associations. We are a nonprofit that believes in helping all nonprofits take steps forward. Now these developing food banks can avoid hurdles by using procedures and technology developed by Aidmatrix.
We are applying these concepts to the NAFC. However, the NAFC has fewer resources, only one full time staff member and a less mature infrastructure. We are using current communication systems but the organization lacks personnel for training and support. The U.S. has 1,100 clinics and only 300 NAFC members and FCL users -- a tremendous opportunity to grow the membership and help more clinics. Right now, we track users, cost savings and order volume. To increase adoption we piloted FreeClinicLink: Pathway to Health Care Access for the Uninsured. Texas had state and regional clinic associations, so we leveraged the opportunity to effect processes and communication. We have five temporary staff deployed throughout Texas until Fall, 2007 working to reach out to clinics. The goals are: increased NAFC membership; streamlined communication and front-line service; and ultimately help more people in need
Key Operational Partnerships
Aidmatrix believes in partnerships-with dorporations, governments, nonprofits-to get the Right Aid to the Right People at the Right Time. We initiated the NAFC program with funding from the Accenture Foundation. Accenture values & supports organizations creating sustainable change. They endorsed our model because we address vital issues and create systemic change.
Aidmatrix partners with technology organizations to bring value to the nonprofit space. Some of our partners include i2 Technologies, Sun Microsystems, Dell Computer, HP/Compaq, Macromedia, Oracle, Salesforce.com and Red Prairie. These organizations have donated products, services, employee time or a combination of these, to orchestrate a revolution in humanitarian aid.
In turn, the donations are leveraged by Aidmatrix staff: a highly experienced group of professionals, formerly working in the for-profit world of technology and supply chain management fields. The result? Aidmatrix is able to provide complete, turn-key solutions to nonprofits at an absolute minimal cost.
To accomplish our goals, Aidmatrix also partners with some of the world’s leading humanitarian aid organizations including: International Red Cross Societies, The UN World Food Programme, Habitat for Humanity, Adventist Community Services and A2H. In addition we just orchestrated the national donations management system for FEMA; for use not only in times of disaster, but also as a daily resource. And the US Chamber also counts us as a partner.
Impact
Financial Model
Generally Aidmatrix works with our partners to find grants for the original build of a project and we develop sustainability into the ongoing operations. The original build of the NAFC program was funded by the Accenture Foundation. Other supporters include The North Central Texas Council of Governments and the Meadows Foundation.
The program is built with sustainability as a basis. For example, the medical supply companies issue a 2% rebate for each transaction of discounted products. A small administrative fee is also charged for each donated product. This revenue is shared equally with the NAFC. We are estimating that the program will be self sustaining in the next five years.
We are currently applying for additional grants and approaching corporate organizations for funding and product donation offers. Support of this type could help us reach sustainability earlier or expand the functionality of the program.
What is your annual operating budget?
$1,750,000
What are your current sources of revenue? (please list any sources that are foundation grants)
Aidmatrix total operating budget is $1,750,000. The Aidmatrix Foundation receives funding from corporate partners including one of the top 3 major transportation companies, FedEx Kinko’s and Accenture. We work with governments (national, regional, state and local) connecting those who have with those who have not. The FEMA collaboration includes funding to create a national network of portals for a donations management system. With this Aidmatrix solution, our FEMA sponsorship allows the connection between large and small nonprofits, free of charge, throughout the United States. Whether during disaster or times of bounty, nonprofits communicate product offers, share items with others and spread relief to all.
In this nonprofit arena, Aidmatrix partners with organizations regardless of size. With larger organizations, we focus on providing value to their member affiliates. For example, regarding domestic hunger Aidmatrix partners with A2H and has developed four of their major technologies that run their organization. Totaling more than 200, A2H food banks use Aidmatrix technology at no cost.
When working with smaller nonprofits, Aidmatrix partners to find grants for technology project support. For example, we received a grant for collaboration with Texas-based disaster response nonprofits. This grant allowed us to develop and pilot the solutions then adopted by FEMA to share nationally. Aidmatrix has worked with other nonprofits in an effort to build international and domestic partnerships. Nonprofits have been granted technology and integration systems, at no- or low-cost, that otherwise would have been cost-prohibitive in the revenue-generating arena. We have also received grants for collaborations with:
- U.S. Chamber of Commerce
- UN World Food Programme
- VOAD National, State and Regional
- Adventist Community Services
- Global Foodbanking Network
- Vitamin Angels
- International Federation of Red Cross/Crescent/Crystal Societies
Effectiveness
Our initial Texas-model phase has yielded positive results. First, we've registerd 300 clinics as FCL users. Fusing this number of grassroots clinics is a major accomplishment. Nationwide the clinics have received $20 million worth of donated products and saved almost $1 million on discounted products. For every dollar saved, clinic personnel can help more patients. Ever-precisous time is spent on care; not searching for product donations or completing long, inefficient item request forms. More time, more service, more people.
FreeClinicLink captures an affiliate’s licenses and donor required details, reducing time & effort on the part of both donor and clinic. Even more time is saved by a one-system login—for donated and discounted products. Clinics simply learn one system; use one set of logins; take advantage of efficient technology in place of papers, forms, phones and faxes.
Aidmatrix focuses on making it good business for corporations to support nonprofits. Donors can partner with the NAFC and donate products with a click of a button. Donors have access to donation information on-line, available 24/7. Corporations can quantify their humanitarian efforts and report the benefit of nonprofit support to their stakeholders. And tax information can be aggregated at the national level so corporations can receive proper tax treatment.
Finally, our system is environmentally friendly. By using this “donations not destruction” program, organizations ensure that products do not get thrown away for bulk in landfills or incineraterated as waste.
Adoption seems to be the biggest challenge. Texas houses an estimated 120 free clinics. Our five-staff team continues to contact each one and offer education on joining the network, using the website. Currently 29 state clinics are using the system. Six weeks into the Texas model, 25 percent of clinics are signed up. As part of our nationwide effort, the program has resulted in a staggering product savings of $12 million.
Which element of the program proved itself most effective?
The Wall Street Journal cited Aidmatrix as “what went right after Hurricane Katrina.” Our donation management portals have optimized the efficiency of nonprofits in various industries and now our technology is making a huge impact on Free Clinics. We have outreached to clinics throughout Texas and can offer these medical facilities computers, training, information, and ultimately a service for dramatically cutting operating costs. With this revolutionizing solution, clinics can build capacity and reach more people in need. One of the most effective program element starts with the effort of the pharmaceutical associations to donate products. A clinic in Dallas received $190,500 worth of the diabetic drug Actos for only a $25 administrative fee. Finally, the NAFC has benefited from an ability to collaborate and communicate with all of their clinics, and because clinics want to be involved in the program, the association membership has increased as well.
Number of clients in the last year?
A poll of eight clinics located in and around Austin, Texas showed these clinics serve 72,368 people. This averages to be 9,046 people who are being served by each clinic every year. The Aidmatrix online tool for Free Clinics is currently being used by approximately 300 clinics nationwide. Extrapolating, the Aidmatrix FreeClinicLink affects access to Health Care for 2.7 million Americans. As clinics continue to sign up and use the online ordering tool, all of these numbers will grow and clinics will have capacity to reach more people in need.
What is the potential demand?
Forty-five million Americans have no health insurance. At current levels of technology and infrastructure, the NAFC does not have capacity to serve all of these people. The numbers are clear: an estimated 1,100 U.S. free clinics; population to be reached by clinics is 7 million; the NAFC has approximately 300 member clinics. By providing more value to the members, the NAFC will can further grow the association and help them build capacity to serve more people in need. The association strives to reach out to all the free clinics, offering adopted of the Aidmatrix FreeClinicLink™ to save money, stretch resources and empower clinic personnel. Ultimately, NAFC in partnership with Aidmatrix perceives the ability to bring aid to the 38 million people currently not being served.
The potential for this program to expand on an international basis is virtually unlimited. Every year, more than 10 million children die of totally preventable deaths. Six million of these could be saved by basic, cost-effective measures (UNICEF 2007). Certainly this is a very complicated matter but, Aidmatrix puts forth this revolutionary innovation for the nonprofit health community.
Scaling up Strategy
Aidmatrix and the NAFC strive to drive adoption of the FCL on a national level. Adoption can be focused in two areas – clinics and the donor community. In turn, we need to continue the technology development to support these audiences.
As volume increases, everyone will benefit. Domestically the focus is to increase:
• The number of NAFC members
• The utilization of the existing tools
• The amount of donated products
• The amount of discounted products to FCL
These nonprofit, community-based clinics are organizations constantly searching for resources to help those in need. With our proposed solution package, Aidmatrix can assist them in adopting technology allowing cohesive, bulk purchasing of discounted products and on-line access to donated goods. As more pharmaceutical companies donate, more clinics will learn of the value-added benefit of membership in the NAFC, and in turn, the program’s long-term sustainability broadens and builds with fees generated from the system. In addition, expanding the volume of the system will fund full time resources to work with corporate donors to negotiate pricing on additional items, thus spreading and spanning the functionality of FreeClinicLink™.
Stage of the initiative:
1
Expansion plan:
Aidmatrix/NAFC could expand with Corporate Sponsors and Grant Funders meeting the challenge. Ideas:
Corporate Adoption and Development Program- Contributions would help Aidmatrix ensure that donors are presented the opportunity to improve Health Care in America.
FreeClinicLink Technology Program- Our user community has outlined enhancements. These requests come from personnel who work everyday to help those needing aid the most.
Free Clinic Adoption Program (TX Model)- Aidmatrix would like to launch a national version of FreeClinicLink. This initiative requires: full-time staff in each state; computers and harware; and Internet service.
*Aidmatrix partnered with FedEx Kinko’s: rather than destruction and land-filling of depreciated computers, items are offered to nonprofits through the Aidmatrix Network. For our exemplary efforts of financial savings in their “green” area of supply chain management, we were awarded “New Supplier of the Year," May 2007
Technology Build-out Program- The online tools can be expanded to include a “needs update” element for clinics to broadcast the most-needed supplies to corporations/donors in real-time. Other helpful tools include an application to process patient medical records & to coordinate volunteer management.
International-This program has visionary, worldwide impact for health-focused groups. Nonprofit community has pleaded for international scope. The Right Funder could sponsor Aidmatrix to improve Health Care globally.
Origin of the Initiative
Our visionary founder understood that much needed food and medical supplies were going to the landfill and not to vital survival assistance for the thousands who needed food or medicine. She founded Aidmatrix to pioneer the use of innovative technology to change the way aid is delivered. The solution was to combine business best practices and revenue-generating technologies, with the broad capabilities of the Internet; ultimately streamlining the delivery of aid without compromising the dignity of the person in need. Our founding goal was for Aidmatrix to touch 50 million lives by 2005. We made it…by 2004…a year ahead of schedule. In a way that had never been done before, Aidmatrix provided nonprofits with the means to break the technology barrier. We are striving to revolutionize humanitarian aid for those who go without basic medical attention. It’s disruptive innovation at its best.
This Entry is about (Issues)
Sustainability
What are your two main challenges to finance the growth of your initiative
The two biggest challenges we face are funding the adoption aspect of the initiative and getting sponsorships from corporations. As soon as Aidmatrix can secure funding for the delivery of this program to clinics nationwide, temporary employees will be trained and hired and sent into their region to help clinics adopt the use of this portal into their practices and will reap high rewards because clinics can immediately see the revolutionary impact.
The other financial challenge involves securing corporate sponsors. Aidmatrix is in the process of presenting sponsorship packages to pharmaceutical and medical supply companies to ensure system self-sustainability. Eventually, sponsoring organizations will have their link and information on the program’s on-line site – they will be a partner in improving health care for all Americans.
The adoption aspect could easily come close to $1 million, if all Initiatives were to be funded and embraced. These unrestricted funds would be Program designated, for expenses like personnel, application development, technical advances, training, equipment and hardware. This figure would be determined by the level and scope of adoption.
How did you hear about this contest and what is your main incentive to participate?
Searching for grants & project funding, we reviewed the R.W.J. Foundation site and clicked on the Open Proposals section. Healthcare. Disruptive Innovation. Solutions People Want. Technology. It all spelled Aidmatrix. Our motivation is to increase program awareness-Right Aid*Right People*Right Time.
The Story
Do you have an annual financial statement?
Yes, Aidmatrix does have an annual report. This independently audited documentation provides secured funding and expense output for the most recent year, 2005. We are in the audit stage for the 2006 report.
Do you currently have an annual financial statement that tracks profit/loss?
Our annual report is independently audited; documentation provides secured funding and expense output. Our annual operating budget also reflects less than 8 percent in administrative expenses, placing Aidmatrix in a top percentile of its nonprofit peers in budget management, with majority funding for programming.
Please describe the amount (and/or type) of funding you need to implement your initiative, at year 1 and at year 5.
On the domestic front, Aidmatrix is in year three of the program. To implement, for example, the outlined program ideas in the prior section, we would move forward with national program implementation on the technology adoption curve. This is a three-year curve; an outcome proven itself in our FEMA donations management program. We anticipate an initiative implementation schedule of five states the first year; 10 in the second; 15 in the third; 10 more the fourth year; and five in the last year. The first year would require $700,000 and the fifth year would costs $350,000.
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 | gandhipkin said: Dear Sir, I would like to seve for any noble cause in India under your guidance. Best Regards, Parimal Gandhi about this Competition Entry. - 1224 days ago read more > |
| healthrigh said: With $60 billion of medical supplies and medications destoyed annually in the United States this is a project whose time has come. ... about this Competition Entry. - 1648 days ago read more > |
| Brad Watts said: We are ecstatic down here in rural South Carolina as the free stuff arrives. What a blessing!! Thank you, thank you, thank you. ... about this Competition Entry. - 1655 days ago read more > |
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