Harvard Case - AMÓS Health and Hope
"AMÓS Health and Hope" Harvard business case study is written by Guillermo Selva, Andrea Prado, Andy Alonso Pearson. It deals with the challenges in the field of Social Enterprise. The case study is 20 page(s) long and it was first published on : Sep 28, 2018
At Fern Fort University, we recommend AM'S Health and Hope adopt a hybrid organizational structure, leveraging the strengths of both for-profit and non-profit models to achieve sustainable growth and maximize social impact. This structure will enable AM'S to access diverse funding sources, attract top talent, and scale its operations while remaining true to its mission of providing quality healthcare and empowering communities in developing countries.
2. Background
AM'S Health and Hope is a social enterprise founded by Dr. Amelia S'nchez, a passionate physician committed to improving healthcare access in underserved communities. The organization provides affordable healthcare services and community development programs in rural Guatemala. The case study highlights AM'S's initial success, its challenges in scaling operations, and the need for a sustainable business model to ensure long-term impact.
Main Protagonists:
- Dr. Amelia S'nchez: Founder and CEO of AM'S Health and Hope, driven by a strong social mission.
- The AM'S Team: Dedicated staff committed to providing quality healthcare and community development services.
- The Guatemalan Community: The beneficiaries of AM'S's services, facing significant challenges due to poverty and limited access to healthcare.
3. Analysis of the Case Study
Social Entrepreneurship Framework: This framework provides a lens to analyze AM'S's situation, considering its social mission, business model, and impact measurement.
- Social Mission: AM'S's mission is deeply rooted in social justice and improving the lives of underserved communities in Guatemala. This mission aligns with the core values of social entrepreneurship and emphasizes social value creation as a primary objective.
- Business Model: AM'S employs a hybrid business model combining fee-for-service healthcare with community development programs funded through grants and donations. This model allows AM'S to generate revenue while addressing broader social needs.
- Impact Measurement: While AM'S tracks key metrics like patient visits and community program participation, it lacks a robust social impact measurement framework to quantify the long-term impact of its interventions.
Strategic Analysis:
- Strengths: AM'S has a strong social mission, a dedicated team, and a proven track record of success in providing healthcare services.
- Weaknesses: AM'S faces challenges in scaling operations, securing funding, and attracting qualified staff.
- Opportunities: There is a significant unmet need for healthcare in Guatemala, and AM'S can leverage its expertise to expand its reach and impact.
- Threats: Competition from established healthcare providers and economic instability in Guatemala pose potential threats to AM'S's sustainability.
4. Recommendations
1. Establish a Hybrid Organizational Structure:
- Social Enterprise Division: This division will focus on providing healthcare services and community development programs, prioritizing social impact and community engagement. It will operate as a non-profit entity, allowing for grant funding and tax-exempt status.
- For-Profit Division: This division will develop and implement innovative healthcare solutions, such as telemedicine platforms or pharmaceutical partnerships, to generate revenue and support the social enterprise division.
2. Implement a Robust Impact Measurement Framework:
- Use a Social Return on Investment (SROI) framework to quantify the social and economic impact of AM'S's programs.
- Develop a comprehensive data collection system to track key metrics, including health outcomes, community development indicators, and financial sustainability.
3. Develop a Scalable Growth Strategy:
- Strategic Partnerships: Establish partnerships with international NGOs, healthcare providers, and pharmaceutical companies to expand reach and access resources.
- Social Franchising: Develop a social franchising model to replicate AM'S's successful model in other underserved communities in Guatemala and beyond.
- Technology Adoption: Leverage technology to improve efficiency, expand access to healthcare, and collect data for impact measurement.
4. Enhance Fundraising and Financial Management:
- Impact Investing: Attract impact investors seeking to generate both financial returns and social impact.
- Social Impact Bonds: Explore social impact bonds to secure funding based on achieving measurable outcomes.
- Diversify Funding Sources: Expand beyond traditional grants and donations to include impact investments, social impact bonds, and revenue generated by the for-profit division.
5. Strengthen Leadership and Governance:
- Board of Directors: Establish a diverse and experienced board of directors with expertise in healthcare, finance, and social entrepreneurship.
- Leadership Development: Invest in leadership development programs for AM'S staff, fostering a culture of innovation and social impact.
5. Basis of Recommendations
These recommendations are grounded in the following considerations:
- Core Competencies and Mission: The hybrid organizational structure aligns with AM'S's core competencies in healthcare delivery and community development while ensuring financial sustainability and scalability.
- External Customers and Internal Clients: The recommendations address the needs of both patients and staff, providing access to quality healthcare and fostering a fulfilling work environment.
- Competitors: The hybrid model allows AM'S to compete effectively with both traditional healthcare providers and other social enterprises.
- Attractiveness: The recommendations are attractive to potential investors and partners due to the potential for both social and financial returns.
- Assumptions: The recommendations are based on the assumption that AM'S can successfully implement the hybrid model, attract impact investors, and leverage technology to enhance its operations.
6. Conclusion
By adopting a hybrid organizational structure, implementing a robust impact measurement framework, and pursuing a scalable growth strategy, AM'S Health and Hope can achieve sustainable growth and maximize its social impact. This approach will enable AM'S to provide quality healthcare and empower communities in Guatemala while demonstrating the power of social entrepreneurship to address critical social challenges.
7. Discussion
Alternatives:
- Remaining solely a non-profit: This option would limit AM'S's access to diverse funding sources and potentially hinder its ability to scale operations.
- Becoming a fully for-profit entity: This option could compromise AM'S's social mission and potentially lead to a focus on profit maximization at the expense of social impact.
Risks:
- Implementation challenges: Implementing the hybrid model requires careful planning and coordination.
- Financial risks: Attracting impact investors and managing the for-profit division requires financial expertise.
- Regulatory challenges: Navigating the legal and regulatory environment for hybrid organizations can be complex.
Key Assumptions:
- AM'S can successfully implement the hybrid model.
- AM'S can attract impact investors and secure funding.
- AM'S can leverage technology to enhance its operations.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline the specific steps required to establish the hybrid organizational structure, develop the impact measurement framework, and implement the growth strategy.
- Secure funding: AM'S should actively seek impact investors and explore social impact bonds to secure funding for the hybrid model.
- Build partnerships: AM'S should establish strategic partnerships with NGOs, healthcare providers, and pharmaceutical companies to expand its reach and access resources.
- Develop a social franchising model: AM'S should develop a social franchising model to replicate its successful model in other underserved communities.
- Invest in technology: AM'S should invest in technology to improve efficiency, expand access to healthcare, and collect data for impact measurement.
By taking these steps, AM'S Health and Hope can position itself for sustainable growth and maximize its social impact in Guatemala and beyond.
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Case Description
AMÓS Health and Hope was a Nicaraguan non-governmental organization (NGO) founded in 2007 to empower rural communities to establish their health needs and develop action plans to solve them. It also supported these communities, following up on their plans and providing guidance to execute the actions planned. Dr. Laura Chanchien Parajón, AMÓS´ Medical Director and co-founder, was working on a funding application to be submitted to the United States' Agency for International Development (USAID), hoping that it would allow the organization to expand its operations in Nicaragua. AMÓS' new project sought to fight diseases transmitted by the Aedes Aegypti mosquito, like , Zika, Dengue, and Chikungunya. The rate of these diseases among Nicaragua's population showed a growing trend over recent years. Dr. Chanchien had scheduled a meeting for the next day with Dr. Parajón, the organization's Executive Director, to decide whether they would submit the application or not. Dr. Parajón had some qualms about this new project, including whether it would draw AMÓS away from its mission and whether the organization had the capabilities required to execute it successfully.
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