Core Disciplines: Base of the Pyramid; BRIC (Brazil, Russia, India, China); International Business; Social Enterprise (Social Entrepreneurship); Strategy & Management
DESCRIPTION: This case study details LifeSpring Hospitals, a maternity hospital chain for low-income women in India that is an investee of Acumen Fund. Though LifeSpring's target customer earns between $2 to $5 per day, the hospital is a business, with the belief that a for-profit model is more efficient, sustainable, and scalable than a charity or non-profit entity that is eternally reliant on subsidies and donations. However, CEO Anant Kumar faces a critical decision in an effort to keep the hospital chain financially self-sustainable: should he continue its cross-subsidization model, in which private ward customers pay higher rates than general ward customers, or should he keep only a general ward, focusing operations solely on low-income women?
TEACHING POINTS: No teaching points at this time
Secondary Tags: Healthcare
Sales Rank: #104