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

Cruzsalud was average company, founded in November 2004. Company's business model is based on the concept of prepaid health care to help low-income clients to have a set of medical services in exchange for a fixed monthly fee, with prices ranging from 9 to 40,000 bolivars (U.S. $ 4.00 to 18.60 ) per month. After the operation was under way, Cruzsalud faced a number of management issues related to the expected sales and subscriber fee collection mechanisms. In addition, Cruzsalud faced a dilemma related to its business model. The law in the workplace, the conditions and the environment, which was adopted in July 2005, forced the company, regardless of size, to ensure the safety and health services. In response to this mandate, and the determination shown by the authorities to comply with it, the business demand for medical services in a spiral. This feature, together with the difficulties in achieving the required volume customers, shareholders led to doubt, Cruzsalud must continue to focus on low-income sector, and the manager offered, or to move towards market health plans employees. "Hide
by Rosa Amelia Gonzalez, Horacio Viana Source: Social Enterprise Knowledge Network 23 pages. Publication Date: July 25, 2008. Prod. #: SKE116-PDF-ENG

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