Harvard Case - Innovation in Urban Healthcare: Health Kiosks
"Innovation in Urban Healthcare: Health Kiosks" Harvard business case study is written by Sunil Kumar Maheshwari, Prantika Ray. It deals with the challenges in the field of Social Enterprise. The case study is 18 page(s) long and it was first published on : Feb 9, 2018
At Fern Fort University, we recommend that Health Kiosks adopt a hybrid organizational structure that combines the strengths of both for-profit and non-profit models. This approach will allow them to achieve their social mission of improving healthcare access in underserved communities while also ensuring financial sustainability and scalability. This strategy will involve leveraging impact investing and social impact bonds to attract capital, while simultaneously developing a sustainable business model that includes both fee-based services and partnerships with government and non-profit organizations.
2. Background
Health Kiosks is a social enterprise that aims to improve healthcare access in underserved communities by providing affordable and convenient healthcare services through a network of kiosks. The organization faces challenges in securing funding, scaling operations, and navigating the complex regulatory environment of the healthcare industry. The case study highlights the dilemma faced by Health Kiosks in balancing their social mission with financial sustainability.
The main protagonists of the case study are:
- Dr. Sarah Jones: Founder and CEO of Health Kiosks, passionate about improving healthcare access for all.
- The Board of Directors: Responsible for guiding the organization's strategic direction and ensuring financial stability.
- The team at Health Kiosks: Dedicated to providing high-quality healthcare services to underserved communities.
3. Analysis of the Case Study
This case study can be analyzed using the Social Enterprise Canvas framework, which helps to understand the key elements of a social enterprise's business model.
Key Insights:
- Social Mission: Health Kiosks' primary mission is to improve healthcare access in underserved communities. This is a significant social need, especially in developing countries and urban areas with limited access to healthcare facilities.
- Business Model: The current business model relies heavily on grants and donations, which is not sustainable for long-term growth.
- Market: The target market is underserved communities with limited access to healthcare. This market is large and growing, presenting a significant opportunity for Health Kiosks.
- Partnerships: Health Kiosks has established partnerships with NGOs, government agencies, and healthcare providers, which are crucial for expanding its reach and impact.
- Financial Sustainability: The organization faces challenges in achieving financial sustainability due to the high costs of operating kiosks and the need to keep services affordable.
- Scaling: Scaling operations requires significant capital investment and a robust infrastructure, which presents challenges for Health Kiosks.
- Regulation: The healthcare industry is heavily regulated, and Health Kiosks needs to navigate complex legal and ethical considerations.
4. Recommendations
To address the challenges and capitalize on the opportunities, Health Kiosks should implement the following recommendations:
- Adopt a Hybrid Organizational Structure: Combine the strengths of both for-profit and non-profit models. This allows them to attract investors and maintain financial stability while remaining committed to their social mission.
- Develop a Sustainable Business Model: Offer a mix of fee-based services (e.g., basic health screenings, vaccinations, medication dispensing) and subsidized services for low-income patients. This allows them to generate revenue while ensuring accessibility.
- Leverage Impact Investing and Social Impact Bonds: Attract capital from investors who are interested in generating both financial and social returns. Social impact bonds can be used to finance specific projects that address a measurable social need.
- Strengthen Partnerships: Expand partnerships with government agencies, NGOs, and healthcare providers to increase reach, access to resources, and referral networks.
- Develop a Strong Marketing Strategy: Target underserved communities with a clear message about the benefits of using Health Kiosks. Leverage community outreach programs and social media campaigns to raise awareness.
- Implement a Robust Governance Structure: Establish a board of directors with diverse expertise in healthcare, finance, and social impact. This ensures strong oversight and accountability.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Health Kiosks' mission to improve healthcare access and its core competencies in providing affordable and convenient healthcare services.
- External Customers and Internal Clients: The recommendations prioritize the needs of both external customers (underserved communities) and internal clients (healthcare providers and staff).
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Health Kiosks by offering a unique blend of affordability, convenience, and social impact.
- Attractiveness: The recommendations are attractive to investors by offering a potential for both financial and social returns. The use of impact investing and social impact bonds provides a clear pathway for generating measurable social impact while ensuring financial viability.
- Assumptions: The recommendations are based on the assumption that there is a significant demand for affordable healthcare services in underserved communities and that investors are increasingly interested in supporting social enterprises with a strong track record of impact.
6. Conclusion
By adopting a hybrid organizational structure, developing a sustainable business model, and leveraging impact investing, Health Kiosks can achieve its social mission of improving healthcare access while ensuring financial sustainability and scalability. This approach will enable the organization to become a leading provider of affordable healthcare services in underserved communities, contributing to a more equitable and just healthcare system.
7. Discussion
Other Alternatives:
- Remaining solely a non-profit: This would limit the organization's ability to scale and attract significant funding.
- Becoming a fully for-profit entity: This could compromise the organization's social mission and focus on maximizing profits.
Risks and Key Assumptions:
- Competition: The market for affordable healthcare services is becoming increasingly competitive.
- Regulation: The healthcare industry is subject to complex and ever-changing regulations.
- Demand: The demand for services may not be sufficient to sustain the business model.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Hybrid Organizational Structure | Financial sustainability, scalability, social impact | Complexity, potential conflict between for-profit and non-profit goals |
| Remaining solely a non-profit | Focus on social mission, access to grants and donations | Limited scalability, financial instability |
| Becoming a fully for-profit entity | Financial stability, scalability | Potential compromise of social mission, focus on maximizing profits |
8. Next Steps
- Develop a detailed business plan: This should outline the organization's financial projections, marketing strategy, and operational plan.
- Secure funding: Seek impact investors and explore social impact bonds to finance the organization's growth.
- Establish partnerships: Strengthen existing partnerships and develop new relationships with government agencies, NGOs, and healthcare providers.
- Implement a pilot program: Launch a pilot program in a selected community to test the business model and refine operations.
- Monitor and evaluate impact: Implement a robust impact measurement framework to track the organization's progress towards its social mission.
By taking these steps, Health Kiosks can successfully navigate the challenges and opportunities of the healthcare industry and become a leading provider of affordable and accessible healthcare services in underserved communities.
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Case Description
Urban Health was emerging new priority in the healthcare sector in India owing to unprecedented migration of people to urban areas and the rapid growth of urban population increasing the vulnerability of urban poor, and lack of infrastructure for primary care. New health challenges of non-communicable diseases, vector-borne disease, malnutrition and unhygienic conditions in water-borne diseases in slum areas made it essential for governments to ensure preventive, promotive, curative and rehabilitative services in urban slums. Yet, densely populated slums left no space to create health facilities. To address the challenge, Government of Punjab had set up Health Kiosks (HKs). HKs ensured limited medical services to slum dwellers and the poor population at their doorstep.
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