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Catch a Falling STAR:
Sustainable Financing for a BoP Hospital
by Paul Clyde

Product Type: Case Publication Date: 05/2011 Product ID#: 1-429-173 Length: 21pages
Core Disciplines: Base of the Pyramid; BRIC (Brazil, Russia, India, China); Emerging and Developing Economies; Emerging Markets; Social Enterprise (Social Entrepreneurship); Strategy & Management
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TEACHING NOTE: Available to Registered Educators. Please login to view it.
DESCRIPTION: Third Place Winner of the NextBillion 2011 Case Writing Competition STAR, a comprehensive mission hospital in India, is facing an impending decrease in donations, which currently comprise nearly 50% of total funding. Its founder, Gautam Vora, must consider altering its business model to adopt more sustainable financing mechanisms. To do so, he benchmarks three other hospitals that serve the BoP: Virika, a maternal health center of excellence in Uganda; Muni Seva Ashram, which includes both a comprehensive hospital (APAM) and cancer hospital (KCHRC), in India; and Narayana Heart Hospital, a large cardiac care-focused hospital in India. The hospitals are compared according to their formation and history, context, services provided, assets, and financing structure. This case is applicable to a variety of courses in business and health management.
TEACHING POINTS:
After discussing this case, students will:
Gain an understanding of different financing mechanisms to achieve self-sustainability available to hospitals serving the BoP.
Identify operational aspects of a business model relevant to each of the financing options — both facilitators and barriers.
Gain a nuanced understanding of the role of leadership in making critical business decisions, particularly in the context of moral imperatives unique to the delivery of healthcare to the underserved.