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Case
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Reference no. 9B11A015
Subject category: Marketing
Published by: Ivey Publishing
Originally published in: 2011
Version: June 27, 2011
Length: 16 pages
Data source: Field research

Abstract

The case describes a unique insurance scheme called Krupa Arogya Suraksha, promoted by the Shree Krishna Arogya Trust (Trust). The product was designed with the aim of extending basic health coverage to the 'base-of-the-pyramid' (BoP) population at an affordable premium. The services were provided by Shree Krishna Hospital, of which the Trust was an associate. The Trust was looking at a win-win situation: in providing modern health services to a larger, lower-income group, the facilities and infrastructure of the hospital would be better utilized. In the five years since its creation, membership in the scheme had increased threefold to 43,000. These members/consumers accounted for 13 per cent of patients treated by the hospital. Thus, the twin objectives of extending affordable healthcare to the lower-income segment and increased utilization of the facilities at the hospital were achieved to some extent. However, the Trust was not able to meet the cost of the health care offered under the scheme from the premiums collected and was dependent on donors to absorb the shortfall. The Trust’s management was concerned about the sustainability of such an arrangement and was looking for ways to make the scheme pay for itself.
Location:
Size:
Small
Other setting(s):
2009

About

Abstract

The case describes a unique insurance scheme called Krupa Arogya Suraksha, promoted by the Shree Krishna Arogya Trust (Trust). The product was designed with the aim of extending basic health coverage to the 'base-of-the-pyramid' (BoP) population at an affordable premium. The services were provided by Shree Krishna Hospital, of which the Trust was an associate. The Trust was looking at a win-win situation: in providing modern health services to a larger, lower-income group, the facilities and infrastructure of the hospital would be better utilized. In the five years since its creation, membership in the scheme had increased threefold to 43,000. These members/consumers accounted for 13 per cent of patients treated by the hospital. Thus, the twin objectives of extending affordable healthcare to the lower-income segment and increased utilization of the facilities at the hospital were achieved to some extent. However, the Trust was not able to meet the cost of the health care offered under the scheme from the premiums collected and was dependent on donors to absorb the shortfall. The Trust’s management was concerned about the sustainability of such an arrangement and was looking for ways to make the scheme pay for itself.

Settings

Location:
Size:
Small
Other setting(s):
2009

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