Business Model Innovation for Inclusive Health Care Delivery at the Bottom of the Pyramid

Federica Angeli*, Anand Kumar Jaiswal

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

This article investigates business models innovation for delivering health care at the base of the pyramid (BoP). The examination of six health care organizational cases suggests that co-creation of patient needs, community engagement, continuous involvement of customers, innovative medical technology, focus on human resources for health, strategic partnerships, economies of scale, and cross-subsidization are business model innovation strategies that enable inclusive health care delivery. Based on these findings, we propose a four-dimensional framework. A process of value discovery, leading BoP patients and communities to recognize a health need and seek for an acceptable treatment, precedes the identification of a successful value proposition. Value creation and value appropriation then follow to warrant patient affordability and organizational sustainability. A "business model mechanism" for BoP health care hence emerges, where interdependencies among these dimensions are highlighted. This article sheds new light on how market-based approaches can improve equitable health care access and hence contribute to poverty alleviation.
Original languageEnglish
Pages (from-to)486-507
JournalOrganization & Environment
Volume29
Issue number4
DOIs
Publication statusPublished - Dec 2016

Keywords

  • health care
  • business model innovation
  • base of the pyramid (BoP)
  • emerging economies

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