BIENESTAR BUSINESS CASE ANALYSIS & BREAKDOWND4SB Group - IED Master Milano 2011

ThE ChALLENgE Analyze the Bienestar’s case study as given to us by the Grameen Creative Lab applying the structure of the Business Planning lecture.

ThE PROBLEM ADDRESSED

» 15% of population without medical insurance.

» Private insurance delays payments of doctors.

» Extreme low quality in health services provided to the poor.

» Poor infrastructure and shortage in public hospitals.

» Lacking facts, statistics, benchmarking.

» Wikipedia as a source is not sufficient (official statistics, studies, etc).

ThE BIg IDEA

» Provide high quality health services to mothers, their children and women in poor areas (target: poor and marginalized communities).

» Introduce a special card entitling cardholder to access this cheaper medical treatment.

» Provide access to affordable primary health care treatment.

» Provide health care where treatment costs 40%-50% less compared to market prices.

» Why should it be initially be focused on women, children and pregnant women.

» Copying business model of SER Argentina. (Adaptable?)

» Education / prevention campaigns taken into consideration?

ThE REASONS

» Based on the successful business model of system “SER” in Argentina.

» Patients gain access to a network of doctors and health care centres that offer the patient services / medicine for up to 60% cheaper than standard costs.

» Medical services offered by the state are poor; wait long time to get treated.

» Why do women need more medical attention?

» Statistics on single moms, divorced, supporting family, number of children per family, birthrate, child death rate, etc.

» How does the medical education system (university) function in Colombia?

» Regulations or policies? (to practice medicine directly from university)

» Women doctors for patients’ intimacy?

ThE TEAM, ThE VALUE ADDED & WhO TO INVOLVE

» Grameen Bank - value: visibility (yet another social business)

» Government of Caldas - value: further improve health care system?

» Doctors - value: patients pay up front/ higher volume.

» Health clinics - value: more patients & visibility. Capacity?

» Health care centres (Manizales and around) - value: more patients.

» IT providers (they need to collect and manage patient history and info) - value: improving SER model?

» Office workers (call centre lines and administration) - value: create new jobs.

» Hospitals - value: they get paid by insurance instead of the government?

» Opinion leaders from the community (they approach people in church)?

» Media agencies (communication campaigns).

ThE TEAM, ThE VALUE ADDED & WhO TO INVOLVE

Desktop Research + Benchmarking + General Questions

» Doctors without borders - (benchmarking)

» Check working model of SER in Argentina (benchmarking)

» Insurance? How much are they charging? (benchmarking with private sector).

» Public sector, how is it working currently - (any benefits added)

» How many doctors are in Caldas? (enough local labor force?)

» Any endemic diseases Caldas/Colombia suffers from?

» What are the main causes of health-related deaths? What is being done today to prevent them?

» Ways of prevention?

» To what extent of illness are people willing to reach before visiting a doctor?

» How much are poor people willing to spend on insurance? How much on average do they spend a year now on

health care? Where did the $5 pricing on the membership come from?

» Salaries in Caldas/Colombia? - minimum wage established by the Colombian government?

» Does GCL have all the core skills?

» They are partnering with the public sector so, are they following any strategic development plans? Do we know what the Colombian/Caldas government has planned for the development of the region? Are there any other type of investments already being done?

» What makes them competitive against the local health care system (free)?

» How is a doctor’s career developed and what are the prospectives? Right after medical school? After years of experience? After retirement?

» How much is a doctor paid on average by the insurance provider per a clinical visit? What are the general agreements for that sector?

ThE REVENUES

» The Bienestar case study at hand does not provide financial analysis nor a revenue model.

» The only future outlook mentioned is to obtain 3,000 patients by the end of 2011.

» The Bienestar model so far is being copied from the Argentina SER model with very few changes. We need to have sufficient market research, possibly through surveys and interviews, in order to understand if this model fits Caldas’ culture.

» How will this model become self-sustainable? How long will it take Bienestar to break-even? Where will the initial investments come from?

ThE COSTS

» The system offers patients a card for approximately $5 per year with family discounts available.

» Patients have access to medicine for up to 60% cheaper than standard costs.

» Prices of health care centers for Bienestar members in Caldas still to be negotiated when the membership number reaches 1000 people.

» How was the pricing of $5/year suggested? What are the facts & figures supporting this cost keeping in mind that the SER model in Argentina charges $3.22/year?

» How will they ensure that the patients have access to 60% cheaper and yet healthy medicine?

» What if the prices the health care centers charge are too expensive?

» What about taking into consideration any additional costs? For example the call center lines for client complaints and the performance checkups? How will those costs be covered?

ThE METRICS

» Currently 16 members in Villamaría.

» 1 health care system.

» Which are GCL’s indicators? Number of patients (that has to do with the success of the business not with the quality of the service itself).

» Time related (too early).

» Surveys on quality.

» Lacking graphs, statistics and facts.

MARKET SEgMENTATION

» Only to poor in rural areas. » Rural vs. urban? (cross-subsidization)

» Outreach?

» Scalability? (focusing on other target groups

ThE TIMELINE

» Have 3,000 patients by the end of 2011.

» 1 health centre in Villamaría

» Manizales: working in the health care center where they register people

» Marketing campaign. Webpage?

» When are they going to break even?

» Short-term? mid-term? long-term planning?

» When does it become self-sustainable? (number of patients vs. clinics & doctors)

ADDITIONAL IDEAS

» Ecography

» Folic acid

» Specific nutrition intake

» Gynecologist

» Counselling

» Health

» Vaccinations

» Check-up/tracking for disease prevention

PREgNANT WOMEN NEED: YOUNg ChILDREN NEED

» Young, fresh graduates?

» How to deal with gender issues in Caldas’ culture? (Do women prefer male or female doctors?)

» What will be the doctors’ incentive and benefits to join the program? (ex. job placement for fresh medical graduates?)

» Can the universities involved in the Caldas Holistic Social Business contribute in any way to this system?

WhO ARE OUR DOCTORS?

» Booklet: Know Your Body (for women, pregnant women, children)

» Communicate Bienestar on useful items/material/hygienic products (ex. towels, hand gel, band aids...)

» Education in schools

MARKETINg IDEAS (SPREAD IN 4PS)

ThE COSTS

OThER qUESTIONS

» Health care centers vs. Existing infrastructure (ex. school spaces as they are available in afternoons after school hours).

» How does the medical education system function in Colombia?

» What do doctors need to achieve before starting medical practice?

» Distribution: Will doctors go to the villages?

» Membership card - Could be functional with added value such as a USB where the patient .information is stored so different doctors can keep track of medical records

ThANK YOU