Cruzsalud: Health Care for Low-Sectors Harvard Case Solution & Analysis

Cruzsalud: Health Care for Low-Sectors

Introduction

Cruzsalud is a health service providing organization, which was founded in November, 2004. The objectives and goals of the organization are to provide the people with the best services possible. The organization believes in providing prepaid medical services, which has affiliated more than 10,000 people in the first 24 months of the operations.

The effective operations and a high level of satisfaction in customer’s services have encouraged the organization to work on a 24 hours basis working 365 days a year.The initial investment in the organization was of US$ 1.4 million. However, later on some partners were added to the organization with a capital investment of US$ 460 thousand.

Cruzsalud is growing with in a constant pace and by the time the organization is achieving its goals, which is to increase the quality of living of the esteemed members of the organization. Most of the clients of the organization are from the low income sectors.They were the promoting partners with the experience in different areas of health, insurance, banking and finances.

They had the confidence that the operations of the organization will grow with the low income customers sector of Venezuela. According to the statistics of Venezuela, the population of more than 26 million inhabitants with a low income social class close to 90% will be the customers of the organization.

Problem identification

There are problems being identified in the operations of the organizations as in the process of operations the organization has faced a dilemma in the business model of the organization. The organization has also faced problems in the sales and fees collection process. Moreover, the organization is considering assisting the corporate workers by agreements with the corporate organizations because the corporate organizations are now by law to provide their workers with health and safety services.
Now the management of the organization is considering assisting the corporate clients and shifting their operations towards them,however the organization’s managers are of the view to continue with the ongoing operations of the organization.

Symptoms

The organization has focused on to the low income sector of the population of the town. The organization has believed that by providing its services to the low income sector of the town, the organization can achieve its goals and objectives. The organization’s plans were to provide services to a number of 1000 people per month however;the reality is not the same as predicted. The organization has managed to assist only 3000 people per month and so the organization is not achieving its required goals.

Nonetheless,the constant process of direct contact with the market and development in different health plans has worked effectively for the organization. The effective working of the organization has proved to be the fundamental key of their business. Moreover, the organization has grown with the plans of the government..................

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