The Medical Credit Fund offers business management workshops to health providers selected to be part of the program, equipping them with the skills to maintain administrative standards and to understand their financial position.

Many lower tier private health care establishments in Tanzania do not have the means to compile administrative records and the manpower to complete basic bookkeeping tasks.

This proves to be quite an obstacle since, when applying for a loan to make upgrades or to carry out renovations, banks will almost certainly ask to see financial records. Without these, chances of getting a loan are nil.

Through its business workshops, the Medical Credit Fund teaches owners and staff of health care facilities the importance of keeping records as well as how to keep them. Having clear records therefore strengthens the clinic's case when applying for a loan to upgrade their facility.

“Many of these clinics keep rudimentary reports. Quite often the personal records of the doctor are combined with the records of the clinic or in some cases the laboratory section will keep its own records and the doctor his own. So although this is one establishment, there can be either too much consolidation or too much separation,” says Herman Abels, Investment Manager for the Medical Credit Fund.

During training sessions, participants are taught basic administrative and accounting practices such as how to compile profit and loss statements, balance sheet and income statements and how to handle cash flow.

“Many clinics definitely see the value in having these records,” says Abels. “The problem is not that they are not capable of having their administration in order. For many clinics the priority is to provide a health service so often the level of accounting is poor. ”

The workshops deal with focussing on how a health facility can increase profits so that it is able to pay back a loan.  A clinic for example will not only need to prove that it is currently in a stable financial position, it will need to project how it plans on either sustaining or increasing profits to repay the loan.

Drawing up a business plan is also a key module of the workshops. Critical areas of need are identified through quality inspections and their contribution to the financial improvement of the facility is assessed and incorporated into the business plan. For example, a coat of paint is important to the appearance of a clinic, and once done will greatly improve its appearance and perhaps attract more customers.

All workshops are interactive and are structured to allow the participants to cite their own experiences.