Local Consultant to Develop a Financial Sustainability Plan

• Country: Rwanda
• Summary: Local Consultant to Develop a Financial Sustainability Plan
• RWT Ref No: 73713822
• Deadline: 07 Nov 2022
• Financier: United States Agency for International Development (USAID)
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
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• Description:
• Tenders are invited for Local Consultant to Develop a Financial Sustainability Plan for the Rwanda Medical Supply Ltd (RMS). Deadline: Monday, 07/11/2022 23:59 Palladium is a global leader in the design, development, and delivery of Positive Impact - the intentional creation of enduring social and economic value. We work with foundations, investors, governments, corporations, communities, and civil society to formulate strategies and implement solutions that generate lasting social, environmental, and financial benefits. For the past 50 years, we have been making Positive Impact possible. With a team of more than 2,500 employees operating in 90 plus countries and a global network of more than 35,000 technical experts, Palladium has improved - and is committed to continuing to improve - economies, societies and most importantly, people's lives. Palladium is implementing the Rwanda Integrated Health Systems Activity (RIHSA), a three-year USAID-funded task order (720-696-20-F-00001) designed to support the Ministry of Health in strengthening Rwanda-s health system to provide quality health care for Rwandans while building the capacity of the Government of Rwanda (GOR) to move away from a donor-financed health system towards a self-reliant system. The project is aimed at achieving two major objectives: Reduce financial barriers to health care through a mix of public and private interventions and provide tools for improved domestic resource mobilization and improve health care financing for the GOR. Improve the quality of essential health services at national, facility and community levels utilizing a health systems approach. Through a focus on financing and quality, USAID-RIHSA provides technical assistance to the GOR on various strategies, tools and approaches that will allow Rwanda to sustainably fund its healthcare system and provide quality care at all levels. The Activity is implemented by a consortium led by Palladium International LLC (Palladium) in partnership with RTI International, the Council for Health Service Accreditation of Southern Africa (COHSASA), Zenysis Technologies, and the Rwanda Agency for Accreditation and Quality of Healthcare (RAAQH). Background and Justification Achievement of Universal Health Care (UHC) is a key priority for the Government of Rwanda (GOR), and various policies, strategies, processes, and structures have been put in place towards this goal. The UHC agenda embodies the health rights of all Rwandans as enshrined in the national constitution (Article 41)[1]. The people-centred focus of the Vision 2050 (“The Rwanda We Want”) manifests this health right in its socio-economic development strategies. Complementary to this is the current Health Sector Strategic Plan (HSSP IV) which has the objective to ensure universal accessibility (in geographical and financial terms) to equitable and affordable quality health services (preventative, curative, rehabilitative and promotional services) for all Rwandans. One of the priorities of the HSSP IV is to ensure sustainable access to quality, affordable, and efficacious medicines, and medical products by ensuring sustained availability of medical products and health technologies, as well as strengthening the capacity in supply chain management systems. The incorporation of the Rwanda Medical Supply Limited (RMS) as a state-owned enterprise (SOE) is timely as it is strategically positioned to contribute towards the strategic objectives of the HSSP IV. For instance, the RMS seeks to be the leading supplier of health products and medical technologies to the Rwandan public through cost-efficient supply chain management and has the objective “to ensure availability of medicines, medical supplies, and consumables in the right quantity, with the acceptable quality, to the right place and customers, at the right time and with optimum cost to the Rwandan population”. RMS plans to achieve this by managing the medicines supply chain in the country through procurement, storage and distribution of drugs, medical supplies, and consumable to all public health facilities. To fulfil its goals, the RMS will need to improve its processes, infrastructure, internal human capacities, strategic purchasing, and overall financial strength. Currently, for example, due to the lack of resources to expand its storage capacity and related logistics (including transportation), the RMS is unable to leverage economies of scale and strategically purchase bulk supplies of essential medicines and medical commodities. If these supply chain challenges persist, the healthcare system in Rwanda will not be able to address the increasing occurrence of drug stock outs at health facilities, hence compromising the quality of health care provision and exposing households to the risk of catastrophic health expenditures. To date, the RMS have depended on external funding to finance some of its activities. Its current strategic plan maps out a sustainable pathway to the future, but there is no clear financial sustainability plan defining and identifying current and future sustainable streams of revenue to the company. Thus, with support from USAID Rwanda Integrated Health Systems Activity (RIHSA), RMS is commissioning the development of a comprehensive Financial Sustainability Plan to explore and define both a medium and a long-term financing plan. Purpose and Statement of Work The goal of this technical assistance is to support the RMS to identify core opportunities to increase their financial sustainability, through a detailed review of current revenue streams and activities to identify a clear plan. The financial sustainability plan will be completed in direct coordination with the RMS to promote recommendation adoption and feasibility of accomplishment within the current structure. To support this, RMS will provide detailed financial, operational and technical information to assist in conducting a detailed mapping of current activities and revenue streams being managed throughout its network. Based on this information, mapping of current and future revenues and operations need to be completed. Financial mapping of current operations will be conducted by functional activity: procurement/supply planning, warehousing operations at both national and regional levels (e.g., receiving, storing/put-away, routine stock checks), transportation management (e.g., route planning, driver salaries and per diem, truck purchase and depreciation), MIS tools (warehouse, transportation, financial management systems), and administration (e.g., accounting, human resources [HR]). Mapping will identify areas of efficiency/inefficiency and discussion will focus on areas taking the most and least resources as measured by industry key performance indicators (KPI). As a result, opportunities for cost containment opportunities and efficiency gains will be recommended to the RMS. Revenue mapping of all streams (current and potential) will need to be identified by client or client type (donor, I/NGO and public and private sector). Based on the revenue streams, there will need to be a review of what is needed to win and maintain these revenues in terms of space, fleet, systems, and human resources. Each stream will require resources to plan, source, deliver, return, and enable operations. Based on this cost and revenue mapping exercise, key recommendations on how to obtain, where to invest and when to scale current operations will be presented to RMS. Strategic planning tools like the business model canvas could provide tools in presenting ideas and ways to stimulate internal discussion with RMS. This could be coordinated with management in a retreat or off-site setting that will encourage company leadership to discuss their ideas in an open and non-judgmental environment. As recommendations are presented and accepted by the RMS, the selected recommendations will be investigated for financial success through evidence-based scenario planning. This will include: Profitability analysis on each recommendation against the investment needed to obtain and maintain the proposed activity as financially viable Project the long-term impact of the recommendation on RMS-s sustainability Identify the tools required to make the recommendation possible Work with RMS to identify a lead implementer of the recommendation Provide guidance to RMS financial personnel on how to track the progress of the recommendation for senior management oversight With this scenario planning, support RMS to identify the priority recommendations with the strongest growth potential. Each priority intervention will be defined, along with impact, cost of investment and opportunity for growth within the financial sustainability plan considering current and future opportunities.
• Documents:

 Tender Notice