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

Medium-sized was a medium-sized firm, founded The company's business model was based on the concept prepaid health care, by means of which low-income subscribers get a set of health services in exchange for a given monthly payment, with costs ranging from 9 to 40 thousand bolivars (US$ 4.00 to 18.60) per month. Once operations were under way, Cruzsalud had to face several management issues linked to subscriber fee collection mechanisms and expected sales. Also, Cruzsalud faced a dilemma linked to its business model.

The Law for Conditions, Workplace Prevention, and Environment, which was passed in July 2005, compelled companies, irrespective of size, to supply safety services and workplace health. In response to that mandate, and the determination shown by authorities to comply with it, company demand for health services corkscrew. This chance, together with the issues faced in reaching the necessary volume of customers, led the shareholders to wonder whether Cruzsalud should continue to focus on the low income sector, as supervisors proposed, or move towards the market for employee health plans.


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